Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Explain the rationale for and problems with making the infant-industry argument work as intended.

Accepted Answer

The infant-industry argument holds that

Question 3

Why are offsets considered protectionist measures?

Accepted Answer

A) Exporters must often find markets for goods outside their lines of expertise. 
B) Exports must be sold at a certain percentage price below the price of domestic producers. 
C) Companies must submit samples to government authorities before receiving export permission. 
D) Trading companies must incur additional inventory carrying charges and pay significantly higher tariffs. 
A) Exporters must often find markets for goods outside their lines of expertise. 
B) Exports must be sold at a certain percentage price below the price of domestic producers. 
C) Companies must submit samples to government authorities before receiving export permission. 
D) Trading companies must incur additional inventory carrying charges and pay significantly higher tariffs.

Question 4

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 5

Defense arguments are sometimes used to prevent exports to unfriendly countries.This runs the risk of the targeted country ________.

Accepted Answer

A) becoming politically destabilized 
B) removing import restrictions 
C) finding alternative sources of supply 
D) banding with other countries to form a cartel 
A) becoming politically destabilized 
B) removing import restrictions 
C) finding alternative sources of supply 
D) banding with other countries to form a cartel

Question 6

There are several reasons for a company to sell products abroad at either below cost or below the price in the home country.Which of the following is one of these reasons?

Accepted Answer

A) encouraging foreign consumers to try new products 
B) improving the exporting country's terms of trade 
C) gaining imports that are sold below cost 
D) following import substitution objectives 
A) encouraging foreign consumers to try new products 
B) improving the exporting country's terms of trade 
C) gaining imports that are sold below cost 
D) following import substitution objectives

Question 7

In a short essay, list and discuss the nontariff barriers that relate to direct price influences: subsidies, aid and loans, customs valuations, and other direct price influences.

Accepted Answer

a.	Subsidies: Countries sometimes make d

Question 8

Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

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 12

In most cases, which type of government protection assistance is most controversial?

Accepted Answer

A) business development services 
B) foreign business contacts 
C) trade expositions 
D) tariffs 
A) business development services 
B) foreign business contacts 
C) trade expositions 
D) tariffs

Question 13

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 exist 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 exist 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 14

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

Accepted Answer

A) import substitution 
B) terms-of-trade 
C) most-favored nation 
D) in-sourcing 
A) import substitution 
B) terms-of-trade 
C) most-favored nation 
D) in-sourcing

Question 15

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 16

In international trade, what is a quota?

Accepted Answer

A) a guarantee by one country to buy some minimum amount from another 
B) a quantitative limit on the amount of a product that can be imported or exported 
C) a countertrade arrangement that establishes the value of imports and exports 
D) a bilateral agreement calling for mutual access to markets 
A) a guarantee by one country to buy some minimum amount from another 
B) a quantitative limit on the amount of a product that can be imported or exported 
C) a countertrade arrangement that establishes the value of imports and exports 
D) a bilateral agreement calling for mutual access to markets

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

Explain the rationale for and problems with making the infant-industry argument work as intended.

Why are offsets considered protectionist measures?

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

Defense arguments are sometimes used to prevent exports to unfriendly countries.This runs the risk of the targeted country ________.

There are several reasons for a company to sell products abroad at either below cost or below the price in the home country.Which of the following is one of these reasons?

In a short essay, list and discuss the nontariff barriers that relate to direct price influences: subsidies, aid and loans, customs valuations, and other direct price influences.

Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.

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

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 ________.

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?

In most cases, which type of government protection assistance is most controversial?

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

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

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.

In international trade, what is a quota?

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

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

Explain the rationale for and problems with making the infant-industry argument work as intended.

Why are offsets considered protectionist measures?

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

Defense arguments are sometimes used to prevent exports to unfriendly countries.This runs the risk of the targeted country ________.

There are several reasons for a company to sell products abroad at either below cost or below the price in the home country.Which of the following is one of these reasons?

In a short essay, list and discuss the nontariff barriers that relate to direct price influences: subsidies, aid and loans, customs valuations, and other direct price influences.

Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.

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

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 ________.

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?

In most cases, which type of government protection assistance is most controversial?

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

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

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.

In international trade, what is a quota?

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