Judging by the Ongoing Changes in Tariff Rates in Major

question 15

Multiple Choice

Judging by the ongoing changes in tariff rates in major trading countries, the world has been experiencing a great

• A) trade liberalization.
• B) surge of protectionism.
• C) lack of progress in the trade-policy area.
• D) move towards regional integration.
• E) shift from export subsidies to specific tariffs.

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Definitions:

Intermediate Product

A product that is a result of a process but is also used as an input in the production of a final or finished product.

Differential Revenue

The amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.

Differential Cost

The amount of increase or decrease in cost expected from a particular course of action compared with an alternative.

Variable Costs

Costs that vary in proportion to changes in the activity base.