Question 1

Briefly describe the five levels of economic integration.

Accepted Answer

There are five possible levels of region

Question 2

Members of ________ agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.

Accepted Answer

A) free trade areas 
B) customs unions 
C) the NAFTA 
D) the EFTA 
A) free trade areas 
B) customs unions 
C) the NAFTA 
D) the EFTA

Question 3

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 remain 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 remain unchanged over the last decade.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following entry strategies do most firms use in the absence of high tariffs?

Accepted Answer

A) FDI 
B) licensing 
C) joint ventures 
D) exporting 
A) FDI 
B) licensing 
C) joint ventures 
D) exporting

Question 6

NAFTA is a treaty entered into by Canada, Mexico, and the United States.

Accepted Answer

A) True 
 B)False

Question 7

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 8

MERCOSUR, an economic bloc in Latin America, is an example of an economic union.

Accepted Answer

A) True 
 B)False

Question 9

Subsidies may allow a manufacturer to practice dumping-that is, to charge an unusually low price for exported products.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) Lower-cost import 
B) Trade openness 
C) FDI 
D) Factors of production 
A) Lower-cost import 
B) Trade openness 
C) FDI 
D) Factors of production

Question 11

Which of the following refers to an often-used form of nontariff trade barrier?

Accepted Answer

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

Question 12

FDI and ownership restrictions increase the competitive advantage of foreigners while diminishing that of the local firms.

Accepted Answer

A) True 
 B)False

Question 13

In 1938, the United States passed the Smoot-Hawley Tariff Act, which ________.

Accepted Answer

A) opened foreign markets for U.S. agricultural products 
B) led to the consolidation of the U.S. banking system 
C) instituted strict regulations to contain intellectual property theft 
D) raised U.S. tariffs to near-record highs of more than 50 percent 
A) opened foreign markets for U.S. agricultural products 
B) led to the consolidation of the U.S. banking system 
C) instituted strict regulations to contain intellectual property theft 
D) raised U.S. tariffs to near-record highs of more than 50 percent

Question 14

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

Accepted Answer

A) Governments can impose temporary trade barriers on foreign imports to ensure that young firms gain a large share of the domestic market. 
B) Such protection is easy to remove. 
C) Protected companies become more efficient and produce products with lower prices. 
D) Protecting infant industries rarely allows countries to develop a modern industrial sector. 
A) Governments can impose temporary trade barriers on foreign imports to ensure that young firms gain a large share of the domestic market. 
B) Such protection is easy to remove. 
C) Protected companies become more efficient and produce products with lower prices. 
D) Protecting infant industries rarely allows countries to develop a modern industrial sector.

Question 15

________ refers to a government measure intended to manage or prevent the export of certain products or trade with certain countries.

Accepted Answer

A) Quota 
B) Export control 
C) Customs 
D) Subsidy 
A) Quota 
B) Export control 
C) Customs 
D) Subsidy

Question 16

Products are classified under about 8,000 different unique codes in the ________ schedule, a standardized system used worldwide.

Accepted Answer

A) harmonized tariff 
B) protective tariff 
C) revenue tariff 
D) specific tariff 
A) harmonized tariff 
B) protective tariff 
C) revenue tariff 
D) specific tariff

Question 17

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.

Accepted Answer

A) safe harbor 
B) local content requirement 
C) rules of origin requirement 
D) ad valorem tariff 
A) safe harbor 
B) local content requirement 
C) rules of origin requirement 
D) ad valorem tariff

Question 18

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 19

Governments impose offensive barriers to safeguard industries, workers, and special interest groups and to promote national security.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following exemplifies local content requirements?

Accepted Answer

A) Titania charges a 27 percent tariff on imported dairy products. 
B) At least 40 percent of the value of all computers assembled in Titania must be from parts or other inputs produced in Titania. 
C) Titania bans imports of firearms. 
D) Titania imposes extensive inspections and bureaucratic procedures on the import of alcoholic beverages. 
A) Titania charges a 27 percent tariff on imported dairy products. 
B) At least 40 percent of the value of all computers assembled in Titania must be from parts or other inputs produced in Titania. 
C) Titania bans imports of firearms. 
D) Titania imposes extensive inspections and bureaucratic procedures on the import of alcoholic beverages.

Briefly describe the five levels of economic integration.

Members of ________ agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.

Which of the following most supports abolishing the cotton quota over maintaining it?

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

Which of the following entry strategies do most firms use in the absence of high tariffs?

NAFTA is a treaty entered into by Canada, Mexico, and the United States.

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

MERCOSUR, an economic bloc in Latin America, is an example of an economic union.

Subsidies may allow a manufacturer to practice dumping-that is, to charge an unusually low price for exported products.

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

Which of the following refers to an often-used form of nontariff trade barrier?

FDI and ownership restrictions increase the competitive advantage of foreigners while diminishing that of the local firms.

In 1938, the United States passed the Smoot-Hawley Tariff Act, which ________.

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

________ refers to a government measure intended to manage or prevent the export of certain products or trade with certain countries.

Products are classified under about 8,000 different unique codes in the ________ schedule, a standardized system used worldwide.

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.

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

Governments impose offensive barriers to safeguard industries, workers, and special interest groups and to promote national security.

Which of the following exemplifies local content requirements?

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

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

Briefly describe the five levels of economic integration.

Members of ________ agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.

Which of the following most supports abolishing the cotton quota over maintaining it?

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

Which of the following entry strategies do most firms use in the absence of high tariffs?

NAFTA is a treaty entered into by Canada, Mexico, and the United States.

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

MERCOSUR, an economic bloc in Latin America, is an example of an economic union.

Subsidies may allow a manufacturer to practice dumping-that is, to charge an unusually low price for exported products.

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

Which of the following refers to an often-used form of nontariff trade barrier?

FDI and ownership restrictions increase the competitive advantage of foreigners while diminishing that of the local firms.

In 1938, the United States passed the Smoot-Hawley Tariff Act, which ________.

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

________ refers to a government measure intended to manage or prevent the export of certain products or trade with certain countries.

Products are classified under about 8,000 different unique codes in the ________ schedule, a standardized system used worldwide.

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.

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

Governments impose offensive barriers to safeguard industries, workers, and special interest groups and to promote national security.

Which of the following exemplifies local content requirements?

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

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