Exam 8: Government Intervention in International Business

Which of the following is an example of an offensive rationale for government intervention?

Singapore and South Korea used export-led development to achieve high growth from the 1970s onward.

Which of the following is often a result of protectionist policies?

If high tariffs are present, managers should consider other strategies, such as FDI, licensing, and joint ventures that allow the firm to operate directly in the target market, avoiding import barriers.

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

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

One approach for reducing exposure to trade barriers is to have exported products classified in the appropriate harmonized product code.

The recent global recession and financial crisis arose largely from inadequate regulation and insufficient enforcement of current regulations in the banking and finance sectors.

International Trade History (Scenario) The history of international trade is the subject of a report presented by Patrick Hinojosa to his international business class. Patrick addressed how the GATT impacted world trade, and how trade barriers have gradually disappeared. He described the protectionist policies implemented by Latin America during the 1950s. Patrick wrapped up his report by citing the rapid economic growth of Singapore, Hong Kong, and Taiwan during the 1970s and the post-World War II Japanese miracle. -Which of the following best describes the "Japanese miracle" cited by Patrick in his report?

An import license refers to a(n) ________.

Which of the following is true with regard to protectionism?

Governments impose export controls for the purpose of ________.

Firms use foreign trade zones to ________.

Currency controls harm companies that export their products from the host country, but favor those that rely heavily on imported parts and components.

The so-called ________ specifies that a certain proportion of products and supplies, or of intermediate goods used in local manufacturing, must be produced within the bloc.

A quantitative restriction on specific imports for a set period of time is referred to as ________.

Import tariffs are a principle instrument of trade intervention. In a short essay, briefly describe the five main types of import tariffs, and discuss the main consequences of government intervention.

Tariffs rarely vary with the form of an imported product.

A ________ is an area within a country that receives imported goods for assembly or other processing and subsequent re-export.

The United Nations estimated that trade barriers alone cost developing countries ________ in lost trading opportunities with developed countries every year.