Question

6. In order to protects its local its local industry. UAE has used a variety of NTBs. Which of the following is true

1. Product technical and quality standards
2. All
3. Currency control
4. Local purchase requirements

7. US has applied new NTBs on motorcycles coming from India. Who is the winner?

1. Us producer
2. Indian producer
3. American consumer
4. Indian employee in the motorcycle company in India

8. UAE has applied a 10% tariff on salt coming from China as long as the quantity that enters is below 100000 tones however beyond that limit UAE applies 50% rate. This type of tariff is

1. Quota
2. Ad valorem tariff
3. Tariff rate quota
4. Numerical export restraint

9. Last year, UAE has decided to cut water and electricity subsidies for firms this leads to an

1. Increase in the cost of production for local firms
2. Decrease in import tariffs
3. All
4. Decrease in the cost of production of local firms

10. UAE government increase trade tariffs. Which of the following can explain the reason to raise tariffs

1. Protect infant industry
2. All
3. Protect foreign producers
4. Protect imports

Answer 1

Q6 D Local purchase requirement

Only companies in the UAE that have the appropriate trade license can import products into the country . In order to do business in the UAE, outside one of the free zones, a foreign business must have a UAE national sponsor and its ownership is limited to 49% unless its business can be found on the UAE Government “positive sectors” list where up to 100% foreign ownership is allowed

Q7 A US PRODUCER

BECAUSE NOW LOCAL PRODUCES CUT THEIR PRICES AND MORE demand come but india also India imposes bound tariff rates on US product like automobiles, motorcycles, agri products and alcoholic beverages.