Exam 7: Government Intervention and Regional Economic Integration

________ represent a major driver of market globalization.

The global recession and financial crisis that began in 2008 arose largely from inadequate regulation and insufficient enforcement of current regulations in the banking and finance sectors.

The ________ is the level of regional integration that remains an ideal and is yet to be achieved.

The ________ is the simplest and most common level of regional integration.

Export-led development refers to government policies that impose high tariffs and quotas on imports from the developed world.

Typically, administrative and bureaucratic procedures ________.

Cotton Quota (Scenario) Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton. -Which of the following best supports maintaining the existing cotton quota?

Minimizing Trade Barriers (Scenario) National Appliance Corporation (NAC) needs to build a new manufacturing facility to meet the increasing demand for professional-grade appliances. NAC managers are considering building the facility in Mexico but are hesitant because of the high tariffs involved. Another possible location for the facility is India; however, the country also imposes high tariffs. Wherever NAC builds a plant, parts will need to be imported from other nations. -Which of the following would be most important for NAC managers to consider while taking a decision in favor of building a facility in Mexico or India?

An import license refers to a ________.

Governments impose defensive barriers to pursue strategic or public policy objectives, such as increasing employment or generating tax revenues.

One approach for reducing exposure to trade barriers is to have exported products classified in the appropriate harmonized product code.

Which of the following is a method used by some manufacturers to avoid paying high tariffs?

________ is(are) at odds with free trade, the unrestricted flow of products, services, and capital across national borders.

The imposition of trade barriers by governments is a major factor in the growth of developing nations and global commerce.

A(n) ________ is a tax that is assessed as a percentage of the value of the imported product.

Which of the following Asian countries had launched an ambitious program of industrialization and export-led development that contributed to its rise from poverty in the 1940s to one of the world's wealthiest countries by the 1980s?

Countries with many high-tech or high value-adding industries, such as information technology, pharmaceuticals, car manufacturing, or financial services, create better jobs and higher tax revenue.

Which of the following is responsible for determining the admission of new member countries to the EU?

Which of the following exemplifies local content requirements?

Offensive rationales for government intervention fall into two categories: national strategic priorities and increasing employment.