Question 1

An effective tariff is the sum of the ad valorem tariff plus the specific duty.

Accepted Answer

A) True 
 B)False

Question 2

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.

Question 3

Which of the following is typically NOT an argument used for keeping the U.S.trade embargo with Cuba intact?

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 4

Export prices of primary products fluctuate less than export prices of manufactured products.

Accepted Answer

A) True 
 B)False

Question 5

An argument against limiting exports to unfriendly countries is that ________.

Accepted Answer

A) the costs of the sanctions are borne by innocent people rather than by leaders 
B) markets cannot be regained after the countries become friendly 
C) one country's essential product is superfluous to another 
D) the exporting nation's cultural identity is harmed 
A) the costs of the sanctions are borne by innocent people rather than by leaders 
B) markets cannot be regained after the countries become friendly 
C) one country's essential product is superfluous to another 
D) the exporting nation's cultural identity is harmed

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

Describe and compare the different types of tariffs (duties).

Accepted Answer

A tariff, or duty, the most common type

Question 10

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

Question 11

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 12

Assume a government places restrictions on a specific product from a specific foreign country.What would be the government's most likely concern about the foreign country's response?

Accepted Answer

A) the foreign producers raising the prices of their exports 
B) the foreign country restricting its own imports 
C) the foreign country restricting its exports in that industry 
D) the foreign producers seeking other markets 
A) the foreign producers raising the prices of their exports 
B) the foreign country restricting its own imports 
C) the foreign country restricting its exports in that industry 
D) the foreign producers seeking other markets

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

Tied aid requires a recipient to ________.

Accepted Answer

A) donate a portion of the funds to the donor country's infrastructure needs 
B) use the capital in any way as long as donor country approval is granted 
C) employ local workers in management positions 
D) spend the funds in the donor country 
A) donate a portion of the funds to the donor country's infrastructure needs 
B) use the capital in any way as long as donor country approval is granted 
C) employ local workers in management positions 
D) spend the funds in the donor country

Question 16

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

Accepted Answer

A) to keep prices low for their citizens 
B) to improve their balance of payments 
C) to diversify their economies 
D) to preserve their national culture 
A) to keep prices low for their citizens 
B) to improve their balance of payments 
C) to diversify their economies 
D) to preserve their national culture

Question 17

Which of the following is NOT a potential problem of using export controls?

Accepted Answer

A) There is an incentive for other countries to develop production of their own. 
B) Domestic producers may have less incentive to increase output. 
C) Prices go up in the country imposing the controls. 
D) There is more incentive for smuggling. 
A) There is an incentive for other countries to develop production of their own. 
B) Domestic producers may have less incentive to increase output. 
C) Prices go up in the country imposing the controls. 
D) There is more incentive for smuggling.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Unlike the infant-industry argument, the industrialization argument for trade protection ________.

Accepted Answer

A) requires independence from other countries 
B) stresses labor-intensive production methods despite high costs 
C) emphasizes use of locally available raw materials for manufacturing inputs 
D) presumes that economic growth will occur even if domestic manufactured prices are not globally competitive 
A) requires independence from other countries 
B) stresses labor-intensive production methods despite high costs 
C) emphasizes use of locally available raw materials for manufacturing inputs 
D) presumes that economic growth will occur even if domestic manufactured prices are not globally competitive

Question 20

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

Accepted Answer

A) True 
 B)False

An effective tariff is the sum of the ad valorem tariff plus the specific duty.

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

Which of the following is typically NOT an argument used for keeping the U.S.trade embargo with Cuba intact?

Export prices of primary products fluctuate less than export prices of manufactured products.

An argument against limiting exports to unfriendly countries is that ________.

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

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

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 ________.

Describe and compare the different types of tariffs (duties).

Terms of trade refers to ________.

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

Assume a government places restrictions on a specific product from a specific foreign country.What would be the government's most likely concern about the foreign country's response?

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

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.

Tied aid requires a recipient to ________.

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

Which of the following is NOT a potential problem of using export controls?

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

Unlike the infant-industry argument, the industrialization argument for trade protection ________.

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

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters

Exam 7: Governmental Influence on Trade

An effective tariff is the sum of the ad valorem tariff plus the specific duty.

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

Which of the following is typically NOT an argument used for keeping the U.S.trade embargo with Cuba intact?

Export prices of primary products fluctuate less than export prices of manufactured products.

An argument against limiting exports to unfriendly countries is that ________.

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

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

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 ________.

Describe and compare the different types of tariffs (duties).

Terms of trade refers to ________.

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

Assume a government places restrictions on a specific product from a specific foreign country.What would be the government's most likely concern about the foreign country's response?

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

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.

Tied aid requires a recipient to ________.

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

Which of the following is NOT a potential problem of using export controls?

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

Unlike the infant-industry argument, the industrialization argument for trade protection ________.

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

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters