Question 1

What are the main arguments for limiting trade in services? What is your opinion on limiting trade in services?

Accepted Answer

Countries restrict trade in services for

Question 2

The industrialization argument for trade protection in developing countries is based on the assumption that ________.

Accepted Answer

A)  the protected industry will become competitive over time with economies of scale 
B)  unemployment and underemployment exists in rural areas, so little agricultural output is lost as people move into industrial jobs 
C)  subsidizing production is a better means of protection than limiting imports 
D)  it is better to depend on buying agricultural surpluses from developed countries than to produce these agricultural goods 
A)  the protected industry will become competitive over time with economies of scale 
B)  unemployment and underemployment exists in rural areas, so little agricultural output is lost as people move into industrial jobs 
C)  subsidizing production is a better means of protection than limiting imports 
D)  it is better to depend on buying agricultural surpluses from developed countries than to produce these agricultural goods

Question 3

Countries most likely establish export restrictions to ________.

Accepted Answer

A)  retaliate against foreign import controls 
B)  raise prices in foreign markets 
C)  encourage substitute products 
D)  reduce domestic production 
A)  retaliate against foreign import controls 
B)  raise prices in foreign markets 
C)  encourage substitute products 
D)  reduce domestic production

Question 4

The U.S. catfish industry petitioned the U.S. government for increased taxes on imported Vietnamese fish,claiming that the fish were being sold below the cost of production. The U.S. catfish industry was accusing the Vietnamese fish industry of ________.

Accepted Answer

A)  dumping 
B)  using an embargo 
C)  subsidizing 
D)  using offsets 
A)  dumping 
B)  using an embargo 
C)  subsidizing 
D)  using offsets

Question 5

The rationale for the infant-industry argument for trade protection is that ________.

Accepted Answer

A)  incubator centers in which business, government, and academia cooperate will develop entrepreneurial companies 
B)  a country should give one firm in an industry a monopoly status so that it will grow large enough to be competitive internationally 
C)  it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period 
D)  lower restrictions should be placed on products coming from countries where a government has a large sphere of political influence 
A)  incubator centers in which business, government, and academia cooperate will develop entrepreneurial companies 
B)  a country should give one firm in an industry a monopoly status so that it will grow large enough to be competitive internationally 
C)  it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period 
D)  lower restrictions should be placed on products coming from countries where a government has a large sphere of political influence

Question 6

At present there is little reciprocal recognition of professional licensing among countries.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best explains why the experience of countries such as Taiwan and South Korea are used to support export-led development policies?

Accepted Answer

A)  their low inflation 
B)  their increased FDI 
C)  their industry diversity 
D)  their rapid economic growth 
A)  their low inflation 
B)  their increased FDI 
C)  their industry diversity 
D)  their rapid economic growth

Question 8

According to the optimum tariff theory,a foreign producer will most likely ________.

Accepted Answer

A)  ship highly taxed goods internationally on a per-unit basis 
B)  lower its export prices if the importing country imposes an import tax on its products 
C)  assess a tax on goods shipped internationally based on a percentage of the goods' value 
D)  seek mport tariffs by using the comparable access argument 
A)  ship highly taxed goods internationally on a per-unit basis 
B)  lower its export prices if the importing country imposes an import tax on its products 
C)  assess a tax on goods shipped internationally based on a percentage of the goods' value 
D)  seek mport tariffs by using the comparable access argument

Question 9

In nearly half the cases in which U.S. firms have requested protection from imports,one or more U.S. companies in the industry opposed the protection. What was the reason for opposing protection?

Accepted Answer

A)  They did not want consumers to have to pay higher prices that would result from protection. 
B)  These were foreign-owned companies that saw the opportunity to serve the U.S. market. 
C)  They feared that they would lose foreign export markets because of retaliation. 
D)  They believed that they could compete against global and domestic rivals. 
A)  They did not want consumers to have to pay higher prices that would result from protection. 
B)  These were foreign-owned companies that saw the opportunity to serve the U.S. market. 
C)  They feared that they would lose foreign export markets because of retaliation. 
D)  They believed that they could compete against global and domestic rivals.

Question 10

The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.

Accepted Answer

A) True 
 B)False

Question 11

Advocates of the comparable access argument for trade protection primarily assert that domestic industries ________.

Accepted Answer

A)  will deteriorate in countries that have lower import restrictions than their trading partners 
B)  should be required to implement export-led development policies on foreign competitors 
C)  are entitled to the same access to foreign markets as foreign industries have to their markets 
D)  are forced to lower prices for domestic consumers because of foreign import restrictions 
A)  will deteriorate in countries that have lower import restrictions than their trading partners 
B)  should be required to implement export-led development policies on foreign competitors 
C)  are entitled to the same access to foreign markets as foreign industries have to their markets 
D)  are forced to lower prices for domestic consumers because of foreign import restrictions

Question 12

Export-led development refers to ________.

Accepted Answer

A)  a country's efforts to promote its exports in order to reduce its trade deficits 
B)  a policy to promote domestic production of goods that would otherwise be imported 
C)  a program to promote industries with export potential 
D)  decreases in infrastructure development due to the loss of revenue from export tariffs 
A)  a country's efforts to promote its exports in order to reduce its trade deficits 
B)  a policy to promote domestic production of goods that would otherwise be imported 
C)  a program to promote industries with export potential 
D)  decreases in infrastructure development due to the loss of revenue from export tariffs

Question 13

Import substitution is a program promoting local production of products that would otherwise be imported.

Accepted Answer

A) True 
 B)False

Question 14

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Accepted Answer

A) True 
 B)False

Question 15

What is dumping? What are the possible effects of dumping on a country's economy?

Accepted Answer

When companies export below cost or belo

Question 16

Many companies and industries argue that they should have the same access to foreign markets as foreign industries and companies have to their markets. In a short essay,discuss this issue of "comparable access" or "fairness."

Accepted Answer

From an economic standpoint,comparable a

Question 17

The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.

Accepted Answer

A) True 
 B)False

Question 18

Assume a government is considering import restrictions on sugar because sugar imports are hurting the domestic industry. Which of the following groups is LEAST likely to speak out on the subject?

Accepted Answer

A)  politicians in areas that grow sugar 
B)  employees of sugar companies 
C)  sugar company owners 
D)  sugar consumers 
A)  politicians in areas that grow sugar 
B)  employees of sugar companies 
C)  sugar company owners 
D)  sugar consumers

Question 19

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas,embargoes,buy local legislation,standards and labels,specific permission requirements,administrative delays,and reciprocal requirements.

Accepted Answer

a.Quotas: The most common type of import

Question 20

What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?

Accepted Answer

A)  Rural areas in the United States, the European Union, and Japan are disproportionately represented in their governments. 
B)  Developing countries put pressure on developed countries to maintain the subsidies so that they receive food products at a lower price. 
C)  The subsidies are used to counter the commodity agreements set up mainly by developing countries. 
D)  The subsidies are at the consumer, rather than producer, level, and everyone benefits from the lower prices. 
A)  Rural areas in the United States, the European Union, and Japan are disproportionately represented in their governments. 
B)  Developing countries put pressure on developed countries to maintain the subsidies so that they receive food products at a lower price. 
C)  The subsidies are used to counter the commodity agreements set up mainly by developing countries. 
D)  The subsidies are at the consumer, rather than producer, level, and everyone benefits from the lower prices.

What are the main arguments for limiting trade in services? What is your opinion on limiting trade in services?

The industrialization argument for trade protection in developing countries is based on the assumption that ________.

Countries most likely establish export restrictions to ________.

The U.S. catfish industry petitioned the U.S. government for increased taxes on imported Vietnamese fish,claiming that the fish were being sold below the cost of production. The U.S. catfish industry was accusing the Vietnamese fish industry of ________.

The rationale for the infant-industry argument for trade protection is that ________.

At present there is little reciprocal recognition of professional licensing among countries.

Which of the following best explains why the experience of countries such as Taiwan and South Korea are used to support export-led development policies?

According to the optimum tariff theory,a foreign producer will most likely ________.

In nearly half the cases in which U.S. firms have requested protection from imports,one or more U.S. companies in the industry opposed the protection. What was the reason for opposing protection?

The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.

Advocates of the comparable access argument for trade protection primarily assert that domestic industries ________.

Export-led development refers to ________.

Import substitution is a program promoting local production of products that would otherwise be imported.

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

What is dumping? What are the possible effects of dumping on a country's economy?

Many companies and industries argue that they should have the same access to foreign markets as foreign industries and companies have to their markets. In a short essay,discuss this issue of "comparable access" or "fairness."

The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.

Assume a government is considering import restrictions on sugar because sugar imports are hurting the domestic industry. Which of the following groups is LEAST likely to speak out on the subject?

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas,embargoes,buy local legislation,standards and labels,specific permission requirements,administrative delays,and reciprocal requirements.

What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?

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

What are the main arguments for limiting trade in services? What is your opinion on limiting trade in services?

The industrialization argument for trade protection in developing countries is based on the assumption that ________.

Countries most likely establish export restrictions to ________.

The U.S. catfish industry petitioned the U.S. government for increased taxes on imported Vietnamese fish,claiming that the fish were being sold below the cost of production. The U.S. catfish industry was accusing the Vietnamese fish industry of ________.

The rationale for the infant-industry argument for trade protection is that ________.

At present there is little reciprocal recognition of professional licensing among countries.

Which of the following best explains why the experience of countries such as Taiwan and South Korea are used to support export-led development policies?

According to the optimum tariff theory,a foreign producer will most likely ________.

In nearly half the cases in which U.S. firms have requested protection from imports,one or more U.S. companies in the industry opposed the protection. What was the reason for opposing protection?

The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.

Advocates of the comparable access argument for trade protection primarily assert that domestic industries ________.

Export-led development refers to ________.

Import substitution is a program promoting local production of products that would otherwise be imported.

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

What is dumping? What are the possible effects of dumping on a country's economy?

Many companies and industries argue that they should have the same access to foreign markets as foreign industries and companies have to their markets. In a short essay,discuss this issue of "comparable access" or "fairness."

The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.

Assume a government is considering import restrictions on sugar because sugar imports are hurting the domestic industry. Which of the following groups is LEAST likely to speak out on the subject?

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas,embargoes,buy local legislation,standards and labels,specific permission requirements,administrative delays,and reciprocal requirements.

What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?

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