Exam 17: Global Business

A ban on imports,a tariff,or a quota raise the price to domestic consumers.This means that consumers will buy less of the product at a higher price.The loss associated with this is called

-The above figure shows the market for rice in Japan.s₂ represents the domestic supply curve,and s₁ represents the world supply curve.Suppose a free market exists.An import quota of 30 units would

A multinational enterprise is defined as a company that

Which of the following can reduce the number of cars imported?

If a bottle of fine French wine costs US$250 in the U.S.,2500 rand in South Africa,there are no transaction costs,and the exchange rate is 5 rand/US$,then

If a foreign producer sells a good in a country at a lower price than in its home market,this is called

A trade policy that allows a country to gain at the expense of other countries is called

The price used to sell goods or services between subsidiaries in a company is

Your U.S.-based company is selling parts to a company in Chile and the company will pay you US$10,000 in 3 months.The current exchange rate is 490 pesos/US$.If the exchange rate at the time of payment is 510 pesos/US$

One of the major effects of trade liberalization has been

-The above figure shows the market for rice in Japan.S₂ represents the domestic supply curve,and S₁ represents the world supply curve.Currently 10 units are imported.The loss from shifting production from foreign to domestic producers equals

The U.S.can produce pizza for $7.50 each and barrels of beer for $37.50 each,and Germany can produce pizza for €5 each and barrels of beer for €15 each (€ is the symbol for the euro,the currency Germany uses).If the exchange rate is 1.50 $/€ then

-The above figure shows the market for rice in Japan.s₂ represents the domestic supply curve,and s₁ represents the world supply curve.Suppose a free market exists.The smallest tariff necessary to completely eliminate imported rice is

An automobile company has two factories,one in Vietnam and one in Australia each with the same number of workers.The Vietnamese factory can produce either 150 engines or 100 transmissions per day.The Australian factory can produce either 100 engines or 75 transmissions per day.

-The above figure shows the market for rice in Japan.S₂ represents the domestic supply curve,and S₁ represents the world supply curve.Currently 10 units are imported.The Consumption distortion loss is equal to

The larger the U.S.imposed per unit import tariff on a good imported and that is also produced in the U.S.

Levying a tariff on an imported good

A firm becomes a multinational enterprise when

If a bottle of fine French wine costs US$250 in the U.S.,2500 rand in South Africa,there are transaction costs of US$50,and the exchange rate is 20 rand/US$,then

-The above figure shows the market for rice in Japan.S₂ represents the domestic supply curve,and S₁ represents the world supply curve.Suppose a free market exists.If a $1 per unit tariff is imposed on imported rice,the quantity of imported rice will decrease by