Question 1

The most common type of tariff is the export tariff.

Accepted Answer

A) True 
 B)False

Question 2

The U.S.automobile industry has attempted to counter import competition in all the following ways EXCEPT ________.

Accepted Answer

A)  concentrating on market niches that initially had less import competition 
B)  lobbying for customs deposits so that importers' costs would be raised 
C)  moving some production to lower-cost countries and exporting to the United States 
D)  effecting internal adjustments, such as cost efficiencies and improved quality 
A)  concentrating on market niches that initially had less import competition 
B)  lobbying for customs deposits so that importers' costs would be raised 
C)  moving some production to lower-cost countries and exporting to the United States 
D)  effecting internal adjustments, such as cost efficiencies and improved quality

Question 3

People who argue for lifting the U.S.trade embargo with Cuba claim all of the following EXCEPT which one?

Accepted Answer

A)  The embargo has not achieved its purpose of changing Cuba's economic and political system. 
B)  U.S. companies lose Cuban sales to competitors from other countries. 
C)  Increased exposure to the United States would be a more effective force of change. 
D)  Cuba has largely become a market economy already. 
A)  The embargo has not achieved its purpose of changing Cuba's economic and political system. 
B)  U.S. companies lose Cuban sales to competitors from other countries. 
C)  Increased exposure to the United States would be a more effective force of change. 
D)  Cuba has largely become a market economy already.

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

On average,workers displaced by imports earn higher wages in the new jobs they accept.

Accepted Answer

A) True 
 B)False

Question 7

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 8

In addition to protection,tariffs serve to ________.

Accepted Answer

A)  generate revenue 
B)  subsidize exports 
C)  subsidize imports 
D)  increase consumption 
A)  generate revenue 
B)  subsidize exports 
C)  subsidize imports 
D)  increase consumption

Question 9

Country X wants to eliminate its balance of trade deficit while simultaneously keeping prices low for imported essentials.Which of the following methods would most likely achieve these dual objectives?

Accepted Answer

A)  devaluing its currency 
B)  enacting selective import restrictions 
C)  using tight monetary policies to deflate price levels 
D)  spurring productivity increases through general tax breaks for industry 
A)  devaluing its currency 
B)  enacting selective import restrictions 
C)  using tight monetary policies to deflate price levels 
D)  spurring productivity increases through general tax breaks for industry

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A)  The U.S. 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 U.S. 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 13

In most cases,trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

Accepted Answer

A) True 
 B)False

Question 14

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

Accepted Answer

A)  it is difficult to identify industries that have a high probability of reaching competitiveness 
B)  assistance should be given only if entry barriers to new firms are very low 
C)  the protecting countries lose too much revenue from import duties 
D)  a short product life cycle makes the industry quickly noncompetitive 
A)  it is difficult to identify industries that have a high probability of reaching competitiveness 
B)  assistance should be given only if entry barriers to new firms are very low 
C)  the protecting countries lose too much revenue from import duties 
D)  a short product life cycle makes the industry quickly noncompetitive

Question 15

Briefly discuss the four noneconomic rationales for governmental intervention in the free movement of trade: maintaining essential industries,preventing shipments to unfriendly countries,maintaining or extending spheres of influence,and preserving national identity.

Accepted Answer

a.Maintenance of essential industries (e

Question 16

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 17

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Accepted Answer

A) True 
 B)False

Question 18

Unemployed workers are most apt to form a pressure group to support ________.

Accepted Answer

A)  export restrictions 
B)  import restrictions 
C)  price limitations 
D)  import subsidies 
A)  export restrictions 
B)  import restrictions 
C)  price limitations 
D)  import subsidies

Question 19

Which of the following is a problem with the infant-industry argument for protection?

Accepted Answer

A)  Most developed countries increasingly have a larger portion of retirees than youth. 
B)  Consumer groups become very active in protesting the higher prices that result during infancy. 
C)  Other countries retaliate by limiting exports of technology needed by the infant industry producers. 
D)  If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection. 
A)  Most developed countries increasingly have a larger portion of retirees than youth. 
B)  Consumer groups become very active in protesting the higher prices that result during infancy. 
C)  Other countries retaliate by limiting exports of technology needed by the infant industry producers. 
D)  If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.

Question 20

Countries most likely establish export restrictions to ________.

Accepted Answer

A)  ensure their population obtain the goods first 
B)  raise prices in foreign markets 
C)  encourage substitute products 
D)  reduce domestic production 
A)  ensure their population obtain the goods first 
B)  raise prices in foreign markets 
C)  encourage substitute products 
D)  reduce domestic production

The most common type of tariff is the export tariff.

The U.S.automobile industry has attempted to counter import competition in all the following ways EXCEPT ________.

People who argue for lifting the U.S.trade embargo with Cuba claim all of the following EXCEPT which one?

Tied aid requires a recipient to ________.

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

On average,workers displaced by imports earn higher wages in the new jobs they accept.

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

In addition to protection,tariffs serve to ________.

Country X wants to eliminate its balance of trade deficit while simultaneously keeping prices low for imported essentials.Which of the following methods would most likely achieve these dual objectives?

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

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?

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

In most cases,trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

Briefly discuss the four noneconomic rationales for governmental intervention in the free movement of trade: maintaining essential industries,preventing shipments to unfriendly countries,maintaining or extending spheres of influence,and preserving national identity.

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

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Unemployed workers are most apt to form a pressure group to support ________.

Which of the following is a problem with the infant-industry argument for protection?

Countries most likely establish export restrictions 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

The most common type of tariff is the export tariff.

The U.S.automobile industry has attempted to counter import competition in all the following ways EXCEPT ________.

People who argue for lifting the U.S.trade embargo with Cuba claim all of the following EXCEPT which one?

Tied aid requires a recipient to ________.

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

On average,workers displaced by imports earn higher wages in the new jobs they accept.

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

In addition to protection,tariffs serve to ________.

Country X wants to eliminate its balance of trade deficit while simultaneously keeping prices low for imported essentials.Which of the following methods would most likely achieve these dual objectives?

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

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?

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

In most cases,trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

Briefly discuss the four noneconomic rationales for governmental intervention in the free movement of trade: maintaining essential industries,preventing shipments to unfriendly countries,maintaining or extending spheres of influence,and preserving national identity.

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

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Unemployed workers are most apt to form a pressure group to support ________.

Which of the following is a problem with the infant-industry argument for protection?

Countries most likely establish export restrictions 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