Under USCommercial Policy,which Clause Permits the Modification of a Trade Liberalization

question 57

Multiple Choice

Under U.S.commercial policy,which clause permits the modification of a trade liberalization agreement on a temporary basis if serious injury occurs to domestic producers as a result of the agreement?

• A) adjustment assistance clause
• B) escape clause
• C) most favored nation clause
• D) prohibitive tariff clause
• E) anti-dumping legislation

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Definitions:

Variable Operating Costs

Expenses that vary in direct proportion to the level of production or sales volume.

Fixed Operating Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.