Exam 7: Governmental Influence on Trade

Country X wants to eliminate its balance of trade deficit while simultaneously keeping prices low for imported essentials. Which of the following methods would most likely achieve these dual objectives?

Country X is withholding goods from international markets in an attempt to raise prices abroad. Such actions will be most effective for Country X if the nation ________.

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.

Governments sometimes prohibit operations of private companies,foreign or domestic,in some sectors because they feel these services should not be sold at a profit.

Trade protectionism will most likely affect which aspect of a company's operations?

Imports can stimulate exports by ________.

Unemployed workers are most apt to form a pressure group to support ________.

Tied aid requires a recipient to ________.

Which term refers to restricting imports in order to boost domestic production and consumption of goods that would otherwise be imported?

Home country consumers are typically active in preventing their domestic companies from dumping products into foreign markets.

A voluntary export restriction (VER)refers to ________.

Which of the following is NOT causing greater complexity in the regulation of trade?

In international trade,what is a quota?

The international regulatory situation for trade is becoming more,rather than less,complex.

What is the main motive for countries' protection of their film/cinema industries?

Import trade controls,but not export trade controls,can be used as a weapon of foreign policy.

Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.

The term protectionism when applied to international trade refers to ________.

What is the most likely reason that consumers rarely protest import restrictions that raise the prices they pay for a specific product?