Question 1

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 2

The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.

Accepted Answer

A) True 
 B)False

Question 3

Unlike the infant-industry argument,the industrialization argument for trade protection ________.

Accepted Answer

A)  requires independence from other countries 
B)  stresses labor-intensive production methods despite high costs 
C)  emphasizes use of locally available raw materials for manufacturing inputs 
D)  presumes that economic growth will occur even if domestic manufactured prices are not globally competitive 
A)  requires independence from other countries 
B)  stresses labor-intensive production methods despite high costs 
C)  emphasizes use of locally available raw materials for manufacturing inputs 
D)  presumes that economic growth will occur even if domestic manufactured prices are not globally competitive

Question 4

A physician,who is a citizen of and licensed in Country A,meets the professional licensing requirements of Country B.The physician will most likely ________.

Accepted Answer

A)  have to pass a language proficiency exam before being allowed to work in Country B 
B)  not be allowed to work in the not-for-profit sector in Country A or Country B for a set period 
C)  have to get a work permit from Country B's immigration authorities to work in Country B 
D)  have to work in the not-for-profit sector in Country B for a period of time before being permitted to work for a profit-seeking organization 
A)  have to pass a language proficiency exam before being allowed to work in Country B 
B)  not be allowed to work in the not-for-profit sector in Country A or Country B for a set period 
C)  have to get a work permit from Country B's immigration authorities to work in Country B 
D)  have to work in the not-for-profit sector in Country B for a period of time before being permitted to work for a profit-seeking organization

Question 5

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

Accepted Answer

One problem with restricting imports in

Question 6

Every time countries enter a new trading agreement,service trade tends to grow more rapidly than merchandise trade.

Accepted Answer

A) True 
 B)False

Question 7

A voluntary export restriction (VER)refers to ________.

Accepted Answer

A)  an agreement between two countries to reciprocally restrict exports to one another 
B)  requests by governments for companies to limit exports of militarily useful technology 
C)  limiting companies' exports to increase domestic supplies 
D)  limits placed on exports by a government of an exporting country at the request of the government of an importing country 
A)  an agreement between two countries to reciprocally restrict exports to one another 
B)  requests by governments for companies to limit exports of militarily useful technology 
C)  limiting companies' exports to increase domestic supplies 
D)  limits placed on exports by a government of an exporting country at the request of the government of an importing country

Question 8

Import substitution is a program promoting local production of products that would otherwise be imported.

Accepted Answer

A) True 
 B)False

Question 9

Terms of trade refers to ________.

Accepted Answer

A)  the quantity of imports that a given quantity of a country's exports can buy 
B)  specific requirements placed on imports and exports at the port of entry or exit 
C)  requirements agreed upon by two countries to regulate bilateral trade 
D)  an account statement showing a country's annual imports and exports 
A)  the quantity of imports that a given quantity of a country's exports can buy 
B)  specific requirements placed on imports and exports at the port of entry or exit 
C)  requirements agreed upon by two countries to regulate bilateral trade 
D)  an account statement showing a country's annual imports and exports

Question 10

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

Question 11

The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are generally true about trade-displaced workers EXCEPT which one?

Accepted Answer

A)  They move abroad to take new jobs. 
B)  They earn less in their new jobs than they earned in their old ones. 
C)  They spend their unemployment benefits on living rather than retraining. 
D)  They have difficulty finding new work because of educational deficiencies. 
A)  They move abroad to take new jobs. 
B)  They earn less in their new jobs than they earned in their old ones. 
C)  They spend their unemployment benefits on living rather than retraining. 
D)  They have difficulty finding new work because of educational deficiencies.

Question 13

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 14

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 15

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

Accepted Answer

A)  There is not much economic potential from trade given Cuba's small population and low per capita income. 
B)  Removal of the embargo will cause much more Cuban immigration to the United States. 
C)  If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained. 
D)  There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead. 
A)  There is not much economic potential from trade given Cuba's small population and low per capita income. 
B)  Removal of the embargo will cause much more Cuban immigration to the United States. 
C)  If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained. 
D)  There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead.

Question 16

Managers should understand the effect of trade protectionism because ________.

Accepted Answer

A)  trade protectionism may limit the number of people permitted to practice a specific profession 
B)  trade protectionism requires the payment of high insurance rates to transport goods internationally 
C)  trade protectionism may prevent companies' enactment of merger and acquisition agreements 
D)  trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers 
A)  trade protectionism may limit the number of people permitted to practice a specific profession 
B)  trade protectionism requires the payment of high insurance rates to transport goods internationally 
C)  trade protectionism may prevent companies' enactment of merger and acquisition agreements 
D)  trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers

Question 17

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Accepted Answer

A)  specific duty 
B)  effective tariff 
C)  ad valorem duty 
D)  compound tariff 
A)  specific duty 
B)  effective tariff 
C)  ad valorem duty 
D)  compound tariff

Question 18

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 19

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 20

Companies with ________ would most likely oppose global protectionist measures.

Accepted Answer

A)  internationally integrated supply chains 
B)  domestically focused supply chains 
C)  multidomestic production facilities 
D)  product differentiation 
A)  internationally integrated supply chains 
B)  domestically focused supply chains 
C)  multidomestic production facilities 
D)  product differentiation

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

The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.

Unlike the infant-industry argument,the industrialization argument for trade protection ________.

A physician,who is a citizen of and licensed in Country A,meets the professional licensing requirements of Country B.The physician will most likely ________.

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

Every time countries enter a new trading agreement,service trade tends to grow more rapidly than merchandise trade.

A voluntary export restriction (VER)refers to ________.

Import substitution is a program promoting local production of products that would otherwise be imported.

Terms of trade refers to ________.

In international trade,what is a quota?

The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.

All of the following are generally true about trade-displaced workers EXCEPT which one?

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?

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 ________.

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

Managers should understand the effect of trade protectionism because ________.

Which term refers to a tariff or duty assessed as a percentage of an item's value?

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

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

Companies with ________ would most likely oppose global protectionist measures.

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

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

The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.

Unlike the infant-industry argument,the industrialization argument for trade protection ________.

A physician,who is a citizen of and licensed in Country A,meets the professional licensing requirements of Country B.The physician will most likely ________.

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

Every time countries enter a new trading agreement,service trade tends to grow more rapidly than merchandise trade.

A voluntary export restriction (VER)refers to ________.

Import substitution is a program promoting local production of products that would otherwise be imported.

Terms of trade refers to ________.

In international trade,what is a quota?

The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.

All of the following are generally true about trade-displaced workers EXCEPT which one?

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?

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 ________.

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

Managers should understand the effect of trade protectionism because ________.

Which term refers to a tariff or duty assessed as a percentage of an item's value?

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

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

Companies with ________ would most likely oppose global protectionist measures.

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