Question 1

Governments impose defensive barriers to ________.

Accepted Answer

A)  safeguard industries 
B)  promote national security 
C)  protect workers 
D)  all of the these 
A)  safeguard industries 
B)  promote national security 
C)  protect workers 
D)  all of the these

Question 2

Obtaining economic development incentives from host- or home-country governments increases the cost of trade and investment barriers.

Accepted Answer

A) True 
 B)False

Question 3

Under the ________, Canada, Mexico, and the United States have eliminated nearly all tariffs on product imports from each other.

Accepted Answer

A)  APEC 
B)  FTAAP 
C)  GATT 
D)  NAFTA 
A)  APEC 
B)  FTAAP 
C)  GATT 
D)  NAFTA

Question 4

Cotton Quota (Scenario)
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton.
-Which of the following most supports abolishing the cotton quota over maintaining it?

Accepted Answer

A)  The cotton growers have a competitive edge over foreign cotton growers, and they are profitable. 
B)  The fabric manufacturer, a prime contributor to the nation's annual revenue, can earn better returns by shifting to another country that does not impose cotton quotas. 
C)  A competing fabric manufacturer is considering opening a production facility in Zanzi. 
D)  The price of cotton fabric has remained unchanged over the last decade. 
A)  The cotton growers have a competitive edge over foreign cotton growers, and they are profitable. 
B)  The fabric manufacturer, a prime contributor to the nation's annual revenue, can earn better returns by shifting to another country that does not impose cotton quotas. 
C)  A competing fabric manufacturer is considering opening a production facility in Zanzi. 
D)  The price of cotton fabric has remained unchanged over the last decade.

Question 5

________ refers to the requirement that firms include a minimum percentage of locally sourced inputs in the production of given products or services.

Accepted Answer

A)  Quotas 
B)  Regulations and technical standards 
C)  Local content requirements 
D)  Administrative and bureaucratic procedures 
A)  Quotas 
B)  Regulations and technical standards 
C)  Local content requirements 
D)  Administrative and bureaucratic procedures

Question 6

Which of the following is an example of a customs union?

Accepted Answer

A)  NAFTA 
B)  ASEAN 
C)  MERCOSUR 
D)  EFTA 
A)  NAFTA 
B)  ASEAN 
C)  MERCOSUR 
D)  EFTA

Question 7

Which of the following has occurred as a result of NAFTA?

Accepted Answer

A)  Workers at maquiladoras have instigated union strikes. 
B)  Mexico's per-capita income has risen substantially. 
C)  Canadian exports to Europe and Asia have doubled. 
D)  Foreign investors have been replaced by U.S. firms. 
A)  Workers at maquiladoras have instigated union strikes. 
B)  Mexico's per-capita income has risen substantially. 
C)  Canadian exports to Europe and Asia have doubled. 
D)  Foreign investors have been replaced by U.S. firms.

Question 8

Governments often impose trade barriers to restrict imports of products to protect infant industries,

Accepted Answer

A) True 
 B)False

Question 9

In a short essay, explain why agricultural subsidies have been implemented in Europe and the United States. What are the criticisms to these subsidies?

Accepted Answer

In Europe and the United States, governm

Question 10

In a short essay, describe the negative effects to the economy when a government intervenes in international trade.

Accepted Answer

Critics counter that protectionism is at

Question 11

In a short essay, describe two methods of government intervention and explain the four major defensive motives for government intervention.

Accepted Answer

Government intervention is often motivat

Question 12

In Cadmia, foreign-owned automobile manufacturing companies must be managed by a Cadmian national and most board members must be Cadmian citizens. This exemplifies ________.

Accepted Answer

A)  FDI and ownership restrictions 
B)  administrative and bureaucratic procedures 
C)  regulations and technical standards 
D)  antidumping duty 
A)  FDI and ownership restrictions 
B)  administrative and bureaucratic procedures 
C)  regulations and technical standards 
D)  antidumping duty

Question 13

Financing or other resources that a government grants to a firm or group of firms, to ensure their survival or success is referred to as a ________.

Accepted Answer

A)  premium 
B)  subsidy 
C)  quota 
D)  grant 
A)  premium 
B)  subsidy 
C)  quota 
D)  grant

Question 14

Members of ________ benefited the most from the maquiladora program.

Accepted Answer

A)  NAFTA 
B)  EFTA 
C)  EU 
D)  MERCOSUR 
A)  NAFTA 
B)  EFTA 
C)  EU 
D)  MERCOSUR

Question 15

Tariffs and most nontariff trade barriers impact importers by making products more expensive.

Accepted Answer

A) True 
 B)False

Question 16

________ are used when governments impose limits, under which firms agree to limit exports of certain products.

Accepted Answer

A)  Voluntary export restraints 
B)  Antidumping duties 
C)  Countervailing duties 
D)  Quotas 
A)  Voluntary export restraints 
B)  Antidumping duties 
C)  Countervailing duties 
D)  Quotas

Question 17

Describe four advantages of regional integration. Provide an example to illustrate each point.

Accepted Answer

a. Expand market size-Regional integrati

Question 18

NAFTA is an example of which of the following levels of regional integration?

Accepted Answer

A)  free trade area 
B)  political union 
C)  economic union 
D)  common market 
A)  free trade area 
B)  political union 
C)  economic union 
D)  common market

Question 19

Imposing trade restrictions such as tariffs or quotas ________.

Accepted Answer

A)  increases the availability of raw materials 
B)  increases the availability of products sold in the home market 
C)  reduces the availability of products sold in the home market 
D)  decreases the cost of products sold in the home market 
A)  increases the availability of raw materials 
B)  increases the availability of products sold in the home market 
C)  reduces the availability of products sold in the home market 
D)  decreases the cost of products sold in the home market

Question 20

Cotton Quota (Scenario)
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton.
-Which of the following questions would be most important for government officials to evaluate when considering the controversy over the cotton quota?

Accepted Answer

A)  What would be the short-term effect of additional agricultural quotas? 
B)  What other nations utilize agricultural quotas and what are the effects? 
C)  Does the government of Zanzi impose heavy duties on dumping? 
D)  What will be the long-term effect of the cotton quota on the Zanzi economy? 
A)  What would be the short-term effect of additional agricultural quotas? 
B)  What other nations utilize agricultural quotas and what are the effects? 
C)  Does the government of Zanzi impose heavy duties on dumping? 
D)  What will be the long-term effect of the cotton quota on the Zanzi economy?

Governments impose defensive barriers to ________.

Obtaining economic development incentives from host- or home-country governments increases the cost of trade and investment barriers.

Under the ________, Canada, Mexico, and the United States have eliminated nearly all tariffs on product imports from each other.

________ refers to the requirement that firms include a minimum percentage of locally sourced inputs in the production of given products or services.

Which of the following is an example of a customs union?

Which of the following has occurred as a result of NAFTA?

Governments often impose trade barriers to restrict imports of products to protect infant industries,

In a short essay, explain why agricultural subsidies have been implemented in Europe and the United States. What are the criticisms to these subsidies?

In a short essay, describe the negative effects to the economy when a government intervenes in international trade.

In a short essay, describe two methods of government intervention and explain the four major defensive motives for government intervention.

In Cadmia, foreign-owned automobile manufacturing companies must be managed by a Cadmian national and most board members must be Cadmian citizens. This exemplifies ________.

Financing or other resources that a government grants to a firm or group of firms, to ensure their survival or success is referred to as a ________.

Members of ________ benefited the most from the maquiladora program.

Tariffs and most nontariff trade barriers impact importers by making products more expensive.

________ are used when governments impose limits, under which firms agree to limit exports of certain products.

Describe four advantages of regional integration. Provide an example to illustrate each point.

NAFTA is an example of which of the following levels of regional integration?

Imposing trade restrictions such as tariffs or quotas ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 7: Government Intervention and Regional Economic Integration

Governments impose defensive barriers to ________.

Obtaining economic development incentives from host- or home-country governments increases the cost of trade and investment barriers.

Under the ________, Canada, Mexico, and the United States have eliminated nearly all tariffs on product imports from each other.

________ refers to the requirement that firms include a minimum percentage of locally sourced inputs in the production of given products or services.

Which of the following is an example of a customs union?

Which of the following has occurred as a result of NAFTA?

Governments often impose trade barriers to restrict imports of products to protect infant industries,

In a short essay, explain why agricultural subsidies have been implemented in Europe and the United States. What are the criticisms to these subsidies?

In a short essay, describe the negative effects to the economy when a government intervenes in international trade.

In a short essay, describe two methods of government intervention and explain the four major defensive motives for government intervention.

In Cadmia, foreign-owned automobile manufacturing companies must be managed by a Cadmian national and most board members must be Cadmian citizens. This exemplifies ________.

Financing or other resources that a government grants to a firm or group of firms, to ensure their survival or success is referred to as a ________.

Members of ________ benefited the most from the maquiladora program.

Tariffs and most nontariff trade barriers impact importers by making products more expensive.

________ are used when governments impose limits, under which firms agree to limit exports of certain products.

Describe four advantages of regional integration. Provide an example to illustrate each point.

NAFTA is an example of which of the following levels of regional integration?

Imposing trade restrictions such as tariffs or quotas ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters