Question 1

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

Accepted Answer

The infant-industry argument holds that

Question 2

The relationship between import substitution policies and export-led development policies is best characterized by which of the following?

Accepted Answer

A)  Import-substitution policies are more likely to lead to production of mature products, whereas export-led development policies result in production of growth products. 
B)  The two are hard to distinguish because production under import substitution may eventually be exported. 
C)  Production under import substitution policies, as opposed to export-led development policies, is more likely to be located in urban areas. 
D)  Production under import substitution policies, as opposed to export-led development policies, is likely to be more labor-intensive. 
A)  Import-substitution policies are more likely to lead to production of mature products, whereas export-led development policies result in production of growth products. 
B)  The two are hard to distinguish because production under import substitution may eventually be exported. 
C)  Production under import substitution policies, as opposed to export-led development policies, is more likely to be located in urban areas. 
D)  Production under import substitution policies, as opposed to export-led development policies, is likely to be more labor-intensive.

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 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

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Accepted Answer

A) True 
 B)False

Question 8

Exporting below cost or below the home country price is called ________.

Accepted Answer

A)  countertrade 
B)  an export-led development policy 
C)  a strategic trade policy 
D)  dumping 
A)  countertrade 
B)  an export-led development policy 
C)  a strategic trade policy 
D)  dumping

Question 9

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

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

Export restrictions have a tendency to ________.

Accepted Answer

A)  favor domestic consumers 
B)  protect employment in the export-restricted industries 
C)  lower prices in foreign markets 
D)  encourage the development of substitutes in the restricting country 
A)  favor domestic consumers 
B)  protect employment in the export-restricted industries 
C)  lower prices in foreign markets 
D)  encourage the development of substitutes in the restricting country

Question 12

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 13

Country X is withholding goods from international markets in an attempt to raise prices abroad.Such actions will be most effective for Country X if the nation ________.

Accepted Answer

A)  supports the development of substitutions 
B)  provides domestic industries with tax breaks 
C)  receives low-interest loans from foreign banks 
D)  holds a monopoly on the product or resource 
A)  supports the development of substitutions 
B)  provides domestic industries with tax breaks 
C)  receives low-interest loans from foreign banks 
D)  holds a monopoly on the product or resource

Question 14

Successful trade retaliation is most likely achieved ________.

Accepted Answer

A)  on agricultural products 
B)  on manufactured products 
C)  by a large trading country 
D)  by a small trading country 
A)  on agricultural products 
B)  on manufactured products 
C)  by a large trading country 
D)  by a small trading country

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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 maintain their cultural sovereignty 
A)  to keep prices low for their citizens 
B)  to improve their balance of payments 
C)  to diversify their economies 
D)  to maintain their cultural sovereignty

Question 19

The most common type of tariff is the ________ tariff.

Accepted Answer

A)  export 
B)  import 
C)  transit 
D)  ad valorem 
A)  export 
B)  import 
C)  transit 
D)  ad valorem

Question 20

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

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

The relationship between import substitution policies and export-led development policies is best characterized by which of the following?

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

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

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?

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

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Exporting below cost or below the home country price is called ________.

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

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

Export restrictions have a tendency to ________.

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?

Country X is withholding goods from international markets in an attempt to raise prices abroad.Such actions will be most effective for Country X if the nation ________.

Successful trade retaliation is most likely achieved ________.

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

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 ________.

Why are offsets considered protectionist measures?

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

The most common type of tariff is the ________ tariff.

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

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

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 6: Governmental Influence on Trade

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

The relationship between import substitution policies and export-led development policies is best characterized by which of the following?

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

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

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?

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

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Exporting below cost or below the home country price is called ________.

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

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

Export restrictions have a tendency to ________.

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?

Country X is withholding goods from international markets in an attempt to raise prices abroad.Such actions will be most effective for Country X if the nation ________.

Successful trade retaliation is most likely achieved ________.

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

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 ________.

Why are offsets considered protectionist measures?

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

The most common type of tariff is the ________ tariff.

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

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

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