Question 1

Terms of trade refers to ________.

Accepted Answer

A)  the quantity of imports that a given quantity of a country's exports can buy 
B)  specific requirements placed on imports and exports at the port of entry or exit 
C)  requirements agreed upon by two countries to regulate bilateral trade 
D)  an account statement showing a country's annual imports and exports 
A)  the quantity of imports that a given quantity of a country's exports can buy 
B)  specific requirements placed on imports and exports at the port of entry or exit 
C)  requirements agreed upon by two countries to regulate bilateral trade 
D)  an account statement showing a country's annual imports and exports A

Question 2

The countries most likely to be successful at using trade retaliation are large trading countries.

Accepted Answer

A) True 
 B)False  True

Question 3

Export controls are highly effective for digital products,such as computers,TVs,and cameras.

Accepted Answer

A) True 
 B)False  False

Question 4

Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production. One of the problems they have encountered is that ________.

Accepted Answer

A)  people have been too reluctant to leave rural areas to go to the cities 
B)  food shortages have increased in rural areas because of worker shortages 
C)  demand for social and political services has increased excessively in the cities 
D)  developed countries have retaliated with protection of products from the developing countries 
A)  people have been too reluctant to leave rural areas to go to the cities 
B)  food shortages have increased in rural areas because of worker shortages 
C)  demand for social and political services has increased excessively in the cities 
D)  developed countries have retaliated with protection of products from the developing countries

Question 5

In most cases,trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

Accepted Answer

A) True 
 B)False

Question 6

The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.

Accepted Answer

A)  universities' study abroad programs do not enable students to obtain dual degrees and licenses from more than one country 
B)  more service functions are being handled as not-for-profit 
C)  people immigrate to those countries with the highest standards so as to more easily become licensed anywhere else 
D)  there is an effective limitation on trade in services 
A)  universities' study abroad programs do not enable students to obtain dual degrees and licenses from more than one country 
B)  more service functions are being handled as not-for-profit 
C)  people immigrate to those countries with the highest standards so as to more easily become licensed anywhere else 
D)  there is an effective limitation on trade in services

Question 7

A possible drawback to the essential industry argument for import protectionism is ________.

Accepted Answer

A)  that such protection hurts the protecting country's balance of payments 
B)  in times of military emergency, almost any product could be considered essential 
C)  other countries find supplies elsewhere 
D)  unemployment increases in the protecting country 
A)  that such protection hurts the protecting country's balance of payments 
B)  in times of military emergency, almost any product could be considered essential 
C)  other countries find supplies elsewhere 
D)  unemployment increases in the protecting country

Question 8

What is the difference between import substitution policies and export-led development policies? What are the potential effects of each?

Accepted Answer

Developing countries promote industriali

Question 9

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Accepted Answer

A) True 
 B)False

Question 10

Briefly discuss the four noneconomic rationales for governmental intervention in the free movement of trade: maintaining essential industries,preventing shipments to unfriendly countries,maintaining or extending spheres of influence,and preserving national identity.

Accepted Answer

a.Maintenance of essential industries (e

Question 11

Which of the following hypothetical examples would be a restriction on the import of services?

Accepted Answer

A)  The U.S. restricts foreign companies from carrying cargo between two U.S. cities. 
B)  Japan restricts North Koreans from visiting Tokyo Disneyland. 
C)  China does not allow the importation of rice from Thailand. 
D)  Canada does not allow Air Canada to buy Brazilian aircraft. 
A)  The U.S. restricts foreign companies from carrying cargo between two U.S. cities. 
B)  Japan restricts North Koreans from visiting Tokyo Disneyland. 
C)  China does not allow the importation of rice from Thailand. 
D)  Canada does not allow Air Canada to buy Brazilian aircraft.

Question 12

People who argue for keeping the U.S. trade embargo with Cuba claim all of the following EXCEPT which one?

Accepted Answer

A)  There is not much economic potential from trade given Cuba's small population and low per capita income. 
B)  Removal of the embargo will cause much more Cuban immigration to the United States. 
C)  If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained. 
D)  There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead. 
A)  There is not much economic potential from trade given Cuba's small population and low per capita income. 
B)  Removal of the embargo will cause much more Cuban immigration to the United States. 
C)  If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained. 
D)  There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead.

Question 13

Which of the following statements most likely undermines the infant-industry argument?

Accepted Answer

A)  Total unit costs decrease through economies of scale. 
B)  High tariffs to prevent foreign competition increase government revenues in the protected country. 
C)  Domestic entrepreneurs need assistance to compete in industries with high entry barriers. 
D)  Experience of operating over time triggers higher productivity and global competitiveness. 
A)  Total unit costs decrease through economies of scale. 
B)  High tariffs to prevent foreign competition increase government revenues in the protected country. 
C)  Domestic entrepreneurs need assistance to compete in industries with high entry barriers. 
D)  Experience of operating over time triggers higher productivity and global competitiveness.

Question 14

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Accepted Answer

A)  specific duty 
B)  effective tariff 
C)  ad valorem duty 
D)  compound tariff 
A)  specific duty 
B)  effective tariff 
C)  ad valorem duty 
D)  compound tariff

Question 15

Successful trade retaliation is most likely achieved ________.

Accepted Answer

A)  on agricultural products 
B)  on manufactured products 
C)  by a large trading country 
D)  by a small trading country 
A)  on agricultural products 
B)  on manufactured products 
C)  by a large trading country 
D)  by a small trading country

Question 16

A physician,who is a citizen of and licensed in Country A,meets the professional licensing requirements of Country B. The physician will most likely ________.

Accepted Answer

A)  have to pass a language proficiency exam before being allowed to work in Country B 
B)  not be allowed to work in the not-for-profit sector in Country A or Country B for a set period 
C)  have to get a work permit from Country B's immigration authorities to work in Country B 
D)  have to work in the not-for-profit sector in Country B for a period of time before being permitted to work for a profit-seeking organization 
A)  have to pass a language proficiency exam before being allowed to work in Country B 
B)  not be allowed to work in the not-for-profit sector in Country A or Country B for a set period 
C)  have to get a work permit from Country B's immigration authorities to work in Country B 
D)  have to work in the not-for-profit sector in Country B for a period of time before being permitted to work for a profit-seeking organization

Question 17

The most common type of tariff is the export tariff.

Accepted Answer

A) True 
 B)False

Question 18

Every time countries enter a new trading agreement,service trade tends to grow more rapidly than merchandise trade.

Accepted Answer

A) True 
 B)False

Question 19

Countries sometimes fear that foreign producers are pricing their exports artificially low. This fear is most likely based on the assumption that ________.

Accepted Answer

A)  foreign companies will lack the earnings to repay their foreign debt 
B)  insufficient earnings will be available to improve product technology 
C)  foreign producers will charge exorbitant prices after putting competitors out of business 
D)  developing countries will be unable to maintain critical industries needed in times of war 
A)  foreign companies will lack the earnings to repay their foreign debt 
B)  insufficient earnings will be available to improve product technology 
C)  foreign producers will charge exorbitant prices after putting competitors out of business 
D)  developing countries will be unable to maintain critical industries needed in times of war

Question 20

The group most likely to become involved in disputes concerning trade protectionism is consumers.

Accepted Answer

A) True 
 B)False

Terms of trade refers to ________.

The countries most likely to be successful at using trade retaliation are large trading countries.

Export controls are highly effective for digital products,such as computers,TVs,and cameras.

Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production. One of the problems they have encountered is that ________.

In most cases,trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.

A possible drawback to the essential industry argument for import protectionism is ________.

What is the difference between import substitution policies and export-led development policies? What are the potential effects of each?

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Briefly discuss the four noneconomic rationales for governmental intervention in the free movement of trade: maintaining essential industries,preventing shipments to unfriendly countries,maintaining or extending spheres of influence,and preserving national identity.

Which of the following hypothetical examples would be a restriction on the import of services?

People who argue for keeping the U.S. trade embargo with Cuba claim all of the following EXCEPT which one?

Which of the following statements most likely undermines the infant-industry argument?

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Successful trade retaliation is most likely achieved ________.

A physician,who is a citizen of and licensed in Country A,meets the professional licensing requirements of Country B. The physician will most likely ________.

The most common type of tariff is the export tariff.

Every time countries enter a new trading agreement,service trade tends to grow more rapidly than merchandise trade.

Countries sometimes fear that foreign producers are pricing their exports artificially low. This fear is most likely based on the assumption that ________.

The group most likely to become involved in disputes concerning trade protectionism is consumers.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 7: Governmental Influence on Trade

Terms of trade refers to ________.

The countries most likely to be successful at using trade retaliation are large trading countries.

Export controls are highly effective for digital products,such as computers,TVs,and cameras.

Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production. One of the problems they have encountered is that ________.

In most cases,trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.

A possible drawback to the essential industry argument for import protectionism is ________.

What is the difference between import substitution policies and export-led development policies? What are the potential effects of each?

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Briefly discuss the four noneconomic rationales for governmental intervention in the free movement of trade: maintaining essential industries,preventing shipments to unfriendly countries,maintaining or extending spheres of influence,and preserving national identity.

Which of the following hypothetical examples would be a restriction on the import of services?

People who argue for keeping the U.S. trade embargo with Cuba claim all of the following EXCEPT which one?

Which of the following statements most likely undermines the infant-industry argument?

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Successful trade retaliation is most likely achieved ________.

A physician,who is a citizen of and licensed in Country A,meets the professional licensing requirements of Country B. The physician will most likely ________.

The most common type of tariff is the export tariff.

Every time countries enter a new trading agreement,service trade tends to grow more rapidly than merchandise trade.

Countries sometimes fear that foreign producers are pricing their exports artificially low. This fear is most likely based on the assumption that ________.

The group most likely to become involved in disputes concerning trade protectionism is consumers.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters