Exam 8: Government Intervention in International Business

Nontariff trade barriers have increased in popularity partly because they ________.

Which of the following countries has the highest degree of economic freedom?

Export-led development refers to government policies that impose high tariffs and quotas on imports from the developed world.

Which of the following statements is true about protection of an infant industry?

Tariffs that are ad valorem are ________.

Minimizing Trade Barriers (Scenario) National Appliance Corporation (NAC) needs to build a new manufacturing facility to meet the increasing demand for professional-grade appliances. NAC managers are considering building the facility in Mexico but are hesitant because of the high tariffs involved. Another possible location for the facility is India; however, the country also imposes high tariffs. Wherever NAC builds a plant, parts will need to be imported from other nations. -Given the high trade barriers in Mexico, the management of NAC is most likely to consider ________ to be an inappropriate entry strategy.

What is the primary ethical concern regarding the import of products from poor countries?

How are investment-based entry strategies affected by tariffs? What do companies do to minimize tariff costs?

Which of the following Asian countries had launched an ambitious program of industrialization and export-led development that contributed to its rise from poverty in the 1940s to one of the world's wealthiest countries by the 1980s?

By adopting procurement policies, governments ________.

Governments intervene in international trade and investments in order to protect the interests of foreign investment firms.

The Chinese government's policy of requiring foreign firms to enter the Chinese market via joint ventures is intended to ________.

What is a foreign trade zone (FTZ)? In a short essay, explain how FTZs are utilized by firms.

Which of the following is a frequent problem in national customs agencies?

A nontariff trade barrier is a government policy, regulation, or procedure that impedes trade through means other than explicit tariffs.

Governments often impose trade barriers to restrict imports of products or services seen to threaten national assets.

________ are transfer payments or tax concessions made directly to foreign firms to entice them to invest in the country.

Blocking imports ________.

________ is at odds with free trade, the unrestricted flow of products, services, and capital across national borders.

Anti-dumping duty reduces or eliminates the competitive advantage of imported products priced at abnormally low levels.