Question 1

Export-led development refers to the off-shoring of production.

Accepted Answer

A) True 
 B)False

Question 2

An import license is ________.

Accepted Answer

A) an agreement whereby one country gives another country permission to use a patent that a company has registered there 
B) a requirement that exporters take merchandise in lieu of money as payment for their sales 
C) a requirement that permission be secured from governmental authorities before importation can be undertaken 
D) a government prohibition of imports from a specific country 
A) an agreement whereby one country gives another country permission to use a patent that a company has registered there 
B) a requirement that exporters take merchandise in lieu of money as payment for their sales 
C) a requirement that permission be secured from governmental authorities before importation can be undertaken 
D) a government prohibition of imports from a specific country

Question 3

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 4

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 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

What are common reasons that governments enact export restrictions? What are the possible negative consequences of such restrictions?

Accepted Answer

A country may limit exports of a product

Question 7

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

Accepted Answer

A) The United States 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 United States 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 8

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

Accepted Answer

A) governmental restrictions and competitive support actions to affect trade flows 
B) payments to dock workers to prevent pilferage of imported shipments 
C) border checks to prevent entry of illegal aliens 
D) methods used to prevent intellectual property theft 
A) governmental restrictions and competitive support actions to affect trade flows 
B) payments to dock workers to prevent pilferage of imported shipments 
C) border checks to prevent entry of illegal aliens 
D) methods used to prevent intellectual property theft

Question 9

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 10

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 11

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

Accepted Answer

A) They reason that if the import restrictions are removed, the foreign producers will raise their prices to those of the domestic producers anyway. 
B) Many countries prohibit consumers to band together to influence political actions. 
C) Typically, although the added costs to consumers for a given product are high in aggregate, they are fairly trivial for most individual consumers. 
D) They reason that if they do something to hurt domestic employment for one product, the displaced workers will then do something that will hurt their own employment. 
A) They reason that if the import restrictions are removed, the foreign producers will raise their prices to those of the domestic producers anyway. 
B) Many countries prohibit consumers to band together to influence political actions. 
C) Typically, although the added costs to consumers for a given product are high in aggregate, they are fairly trivial for most individual consumers. 
D) They reason that if they do something to hurt domestic employment for one product, the displaced workers will then do something that will hurt their own employment.

Question 12

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 13

Countries typically establish export restrictions to encourage the development of substitute products.

Accepted Answer

A) True 
 B)False

Question 14

The U.S.catfish industry successfully petitioned the U.S.government to require that catfish varieties imported from Vietnam be labeled as "tra," "basa," or "pangasius." This is an example of which of the following?

Accepted Answer

A) an embargo 
B) a tariff 
C) a nontariff barrier 
D) a direct price influence 
A) an embargo 
B) a tariff 
C) a nontariff barrier 
D) a direct price influence

Question 15

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 16

Managers should understand the effect of trade protectionism because ________.

Accepted Answer

A) trade protectionism may limit the number of people permitted to practice a specific profession 
B) trade protectionism requires the payment of high insurance rates to transport goods internationally 
C) trade protectionism may prevent companies' enactment of merger and acquisition agreements 
D) trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers 
A) trade protectionism may limit the number of people permitted to practice a specific profession 
B) trade protectionism requires the payment of high insurance rates to transport goods internationally 
C) trade protectionism may prevent companies' enactment of merger and acquisition agreements 
D) trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers

Question 17

The term protectionism, when applied to international trade, refers to governmental restrictions and incentives to affect trade flows.

Accepted Answer

A) True 
 B)False

Question 18

The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.

Accepted Answer

A) True 
 B)False

Question 19

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 import 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 import tariffs by using the comparable access argument

Question 20

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

Accepted Answer

A) growth in export tariffs 
B) services available over the Internet 
C) heightened concern about product safety 
D) development of new products that must be classified 
A) growth in export tariffs 
B) services available over the Internet 
C) heightened concern about product safety 
D) development of new products that must be classified

Export-led development refers to the off-shoring of production.

An import license is ________.

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

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

What are common reasons that governments enact export restrictions? What are the possible negative consequences of such restrictions?

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

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

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

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

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

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 ________.

Countries typically establish export restrictions to encourage the development of substitute products.

The U.S.catfish industry successfully petitioned the U.S.government to require that catfish varieties imported from Vietnam be labeled as "tra," "basa," or "pangasius." This is an example of which of the following?

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?

Managers should understand the effect of trade protectionism because ________.

The term protectionism, when applied to international trade, refers to governmental restrictions and incentives to affect trade flows.

The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.

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

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

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

Export-led development refers to the off-shoring of production.

An import license is ________.

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

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

What are common reasons that governments enact export restrictions? What are the possible negative consequences of such restrictions?

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

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

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

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

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

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 ________.

Countries typically establish export restrictions to encourage the development of substitute products.

The U.S.catfish industry successfully petitioned the U.S.government to require that catfish varieties imported from Vietnam be labeled as "tra," "basa," or "pangasius." This is an example of which of the following?

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?

Managers should understand the effect of trade protectionism because ________.

The term protectionism, when applied to international trade, refers to governmental restrictions and incentives to affect trade flows.

The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.

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

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

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