1. The passage is chiefly concerned with
(B) warning that the application of laws affecting trade frequently has unintended consequences.
The passage discusses how the search for legal protection from import competition has hurt more companies than it has helped. It highlights the complexities and unintended consequences of import relief laws and how they may not meet the strategic needs of all units within the same parent company.
2. It can be inferred from the passage that the minimal basis for a complaint to the International Trade Commission is
(D) The company requesting import relief has been injured by the sale of imports in the United States.
The passage mentions that even the simple claim of an industry being injured by imports is sufficient grounds to seek import relief. This implies that a company requesting import relief must demonstrate that it has been injured by the sale of imports in the United States.
3. The last paragraph performs which of the following functions in the passage?
(E) It cites a specific case that illustrates a problem presented more generally in the previous paragraph.
The last paragraph presents a specific case of a complaint to the ITC, where a foreign conglomerate with United States operations sought import relief against a United States company with foreign operations. This case illustrates the problem discussed in the previous paragraph regarding the potential misuse of import relief laws by foreign companies against United States companies.
4. The passage warns of which of the following dangers?
(D) Companies that are not United States-owned may seek legal protection from import competition under United States import relief laws.
The passage discusses the danger of foreign companies using import relief laws against United States-owned companies. It highlights a case where a "United States" company, which was a subsidiary of a Dutch conglomerate, sought import relief against "Canadian" companies, including a subsidiary of a Chicago firm. This demonstrates the danger that companies not owned by the United States may seek legal protection under United States import relief laws.
5. The passage suggests that which of the following is most likely to be true of United States trade laws?
(D) Those that help one unit within a parent company will not necessarily help other units in the company.
The passage emphasizes the complexity of global relationships within corporations and states that a system of import relief laws is unlikely to meet the strategic needs of all units under the same parent company. This suggests that trade laws that help one unit within a parent company may not necessarily help other units in the company.
6. It can be inferred from the passage that the author believes which of the following about the complaint mentioned in the last paragraph?
(B) The complaint violated the intent of import relief laws.
The passage describes the case of the complaint where a foreign conglomerate with United States operations sought import relief against a United States company with foreign operations. The use of import relief laws by the foreign conglomerate against the United States company violates the intent of import relief laws, which are designed to protect domestic industries.
7. According to the passage, companies have the general impression that International Trade Commission import relief practices have
(C) actually helped companies that have requested import relief.
The passage states that contrary to the general impression, the quest for import relief has hurt more companies than it has helped. This implies that companies have the general impression that import relief practices by the International Trade Commission have actually helped companies that have requested import relief.
8. According to the passage, the International Trade Commission is involved in which of the following?
(A) Investigating allegations of unfair import competition.
The passage mentions the role of the United States International Trade Commission (ITC) in receiving complaints and investigating allegations of damage from imports that benefit from subsidies, products being dumped at less than fair value, and overall injury from imports. Therefore, the ITC is involved in investigating allegations of unfair import competition.