Question 1

When customs officials set a value on which to place an import tariff,they ordinarily use the declared invoice price unless they doubt its authenticity.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Most countries have agreed on how to assess values when their customs agents levy tariffs.Which of the following best expresses this agreement?

Accepted Answer

A)  They should use the value of similar goods arriving at about the same time. 
B)  They should use the declared invoice price unless they doubt its authenticity. 
C)  They should assess a value based on local costs to produce a similar product. 
D)  They should assess a value based on the expected final consumer sales price. 
A)  They should use the value of similar goods arriving at about the same time. 
B)  They should use the declared invoice price unless they doubt its authenticity. 
C)  They should assess a value based on local costs to produce a similar product. 
D)  They should assess a value based on the expected final consumer sales price.

Question 4

What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?

Accepted Answer

A)  Rural areas in the United States, the European Union, and Japan are disproportionately represented in their governments. 
B)  Developing countries put pressure on developed countries to maintain the subsidies so that they receive food products at a lower price. 
C)  The subsidies are used to counter the commodity agreements set up mainly by developing countries. 
D)  The subsidies are at the consumer, rather than producer, level, and everyone benefits from the lower prices. 
A)  Rural areas in the United States, the European Union, and Japan are disproportionately represented in their governments. 
B)  Developing countries put pressure on developed countries to maintain the subsidies so that they receive food products at a lower price. 
C)  The subsidies are used to counter the commodity agreements set up mainly by developing countries. 
D)  The subsidies are at the consumer, rather than producer, level, and everyone benefits from the lower prices.

Question 5

Protectionism will most likely affect which aspect of a company's operations?

Accepted Answer

A)  selecting employees 
B)  investing short-term capital 
C)  acquiring foreign supplies 
D)  relocating personnel overseas 
A)  selecting employees 
B)  investing short-term capital 
C)  acquiring foreign supplies 
D)  relocating personnel overseas

Question 6

An import tariff may be protective ________.

Accepted Answer

A)  only if it is on imports the country produces domestically 
B)  if it serves primarily to restrict entry of hazardous materials 
C)  if it does not generate significant tax revenue for essential industries 
D)  even though the importing country does not produce the product 
A)  only if it is on imports the country produces domestically 
B)  if it serves primarily to restrict entry of hazardous materials 
C)  if it does not generate significant tax revenue for essential industries 
D)  even though the importing country does not produce the product

Question 7

Why should managers have an understanding of trade protectionism?

Accepted Answer

A)  Trade protectionism targets factor endowments, thus affecting the best country to locate production. 
B)  Trade protectionism affects a company's ability to sell abroad and ability to compete at home. 
C)  Trade protectionism affects the number of people permitted to practice a specific profession. 
D)  Trade protectionism prevents companies' enactment of merger and acquisition agreements. 
A)  Trade protectionism targets factor endowments, thus affecting the best country to locate production. 
B)  Trade protectionism affects a company's ability to sell abroad and ability to compete at home. 
C)  Trade protectionism affects the number of people permitted to practice a specific profession. 
D)  Trade protectionism prevents companies' enactment of merger and acquisition agreements.

Question 8

The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.

Accepted Answer

A)  universities' study abroad programs do not enable students to obtain dual degrees and licenses from more than one country 
B)  more service functions are being handled as not-for-profit 
C)  people immigrate to those countries with the highest standards so as to more easily become licensed anywhere else 
D)  there is an effective limitation on trade in services 
A)  universities' study abroad programs do not enable students to obtain dual degrees and licenses from more than one country 
B)  more service functions are being handled as not-for-profit 
C)  people immigrate to those countries with the highest standards so as to more easily become licensed anywhere else 
D)  there is an effective limitation on trade in services

Question 9

The international regulatory situation for trade is becoming more,rather than less,complex.

Accepted Answer

A) True 
 B)False

Question 10

The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.

Accepted Answer

A) True 
 B)False

Question 11

At present there is little reciprocal recognition of professional licensing among countries.

Accepted Answer

A) True 
 B)False

Question 12

Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.

Accepted Answer

A) True 
 B)False

Question 13

A quota is a quantitative limit on the amount of a product that can be traded.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are reasons a country might institute import restrictions to improve its balance of trade position with other countries EXCEPT to ________.

Accepted Answer

A)  maintain essential industries 
B)  reduce imports and encourage exports 
C)  get comparable access for its companies 
D)  bargain away restrictions by other countries 
A)  maintain essential industries 
B)  reduce imports and encourage exports 
C)  get comparable access for its companies 
D)  bargain away restrictions by other countries

Question 15

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 16

Export controls are highly effective for digital products,such as computers,TVs,and cameras.

Accepted Answer

A) True 
 B)False

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

An argument against limiting exports to unfriendly countries is that ________.

Accepted Answer

A)  the costs of the sanctions are borne by innocent people rather than by leaders 
B)  markets cannot be regained after the countries become friendly 
C)  one country's essential product is superfluous to another 
D)  the exporting nation's cultural identity is harmed 
A)  the costs of the sanctions are borne by innocent people rather than by leaders 
B)  markets cannot be regained after the countries become friendly 
C)  one country's essential product is superfluous to another 
D)  the exporting nation's cultural identity is harmed

Question 19

Why do developing countries sometimes impose import restrictions to increase their levels of industrialization?

Accepted Answer

Countries with a large manufacturing bas

Question 20

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

When customs officials set a value on which to place an import tariff,they ordinarily use the declared invoice price unless they doubt its authenticity.

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?

Most countries have agreed on how to assess values when their customs agents levy tariffs.Which of the following best expresses this agreement?

What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?

Protectionism will most likely affect which aspect of a company's operations?

An import tariff may be protective ________.

Why should managers have an understanding of trade protectionism?

The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.

The international regulatory situation for trade is becoming more,rather than less,complex.

The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.

At present there is little reciprocal recognition of professional licensing among countries.

Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.

A quota is a quantitative limit on the amount of a product that can be traded.

All of the following are reasons a country might institute import restrictions to improve its balance of trade position with other countries EXCEPT to ________.

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

Export controls are highly effective for digital products,such as computers,TVs,and cameras.

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

An argument against limiting exports to unfriendly countries is that ________.

Why do developing countries sometimes impose import restrictions to increase their levels of industrialization?

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.

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

When customs officials set a value on which to place an import tariff,they ordinarily use the declared invoice price unless they doubt its authenticity.

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?

Most countries have agreed on how to assess values when their customs agents levy tariffs.Which of the following best expresses this agreement?

What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?

Protectionism will most likely affect which aspect of a company's operations?

An import tariff may be protective ________.

Why should managers have an understanding of trade protectionism?

The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.

The international regulatory situation for trade is becoming more,rather than less,complex.

The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.

At present there is little reciprocal recognition of professional licensing among countries.

Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.

A quota is a quantitative limit on the amount of a product that can be traded.

All of the following are reasons a country might institute import restrictions to improve its balance of trade position with other countries EXCEPT to ________.

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

Export controls are highly effective for digital products,such as computers,TVs,and cameras.

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

An argument against limiting exports to unfriendly countries is that ________.

Why do developing countries sometimes impose import restrictions to increase their levels of industrialization?

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.

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