Question 1

Governments support domestic industries by ________.

Accepted Answer

A) incentivize dumping 
B) increase the costs of production of domestic industries 
C) alienate domestic industries 
D) adopting procurement policies that restrict purchases to home-country suppliers 
A) incentivize dumping 
B) increase the costs of production of domestic industries 
C) alienate domestic industries 
D) adopting procurement policies that restrict purchases to home-country suppliers

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following situations is an example of country risk?

Accepted Answer

A) Fiesta Corp. is an automobile manufacturer based in the U.S. The company's negotiation attempts with China to open a manufacturing factory in Beijing failed owing to cultural differences. 
B) Frostees Inc. is a food and beverages company based in the U.S. Its attempt to set up an outlet in Thailand failed primarily owing to a misinterpretation of the memorandum of understanding by a potential business partner in Thailand. 
C) Alpha Corp. , a rice manufacturer based in Pakistan, suffered losses when the U.S. Department of Commerce decided to impose tariffs on the import of paddy rice to avoid competition for the domestic industry. 
D) Tamiaz LLC is a U.S. based manufacturer of clothing with outlets in China, Vietnam, and India. The company incurred a loss due to delayed payments from India owing to fluctuations in the currency exchange rates. 
A) Fiesta Corp. is an automobile manufacturer based in the U.S. The company's negotiation attempts with China to open a manufacturing factory in Beijing failed owing to cultural differences. 
B) Frostees Inc. is a food and beverages company based in the U.S. Its attempt to set up an outlet in Thailand failed primarily owing to a misinterpretation of the memorandum of understanding by a potential business partner in Thailand. 
C) Alpha Corp. , a rice manufacturer based in Pakistan, suffered losses when the U.S. Department of Commerce decided to impose tariffs on the import of paddy rice to avoid competition for the domestic industry. 
D) Tamiaz LLC is a U.S. based manufacturer of clothing with outlets in China, Vietnam, and India. The company incurred a loss due to delayed payments from India owing to fluctuations in the currency exchange rates.

Question 4

Tariffs and most nontariff trade barriers apply to FDI, whereas investment barriers apply to exporting.

Accepted Answer

A) True 
 B)False

Question 5

What has NAFTA accomplished for its members?

Accepted Answer

Launched in 1994, NAFTA consists of Cana

Question 6

Governments impose defensive barriers to ________.

Accepted Answer

A) generate tax revenues 
B) increase employment 
C) pursue strategic policy objectives 
D) promote national security 
A) generate tax revenues 
B) increase employment 
C) pursue strategic policy objectives 
D) promote national security

Question 7

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 8

Which of the following is the most likely reason for the establishment of the European Community?

Accepted Answer

A) broaden the power of communism within East Germany 
B) create strict tariffs for trade and international business 
C) combine forces against the powerful former Soviet Union 
D) establish judicial procedures to handle trade violators 
A) broaden the power of communism within East Germany 
B) create strict tariffs for trade and international business 
C) combine forces against the powerful former Soviet Union 
D) establish judicial procedures to handle trade violators

Question 9

Governments impose offensive barriers to ________.

Accepted Answer

A) protect domestic industries 
B) promote national security 
C) increase employment 
D) safeguard the interests of special interest groups 
A) protect domestic industries 
B) promote national security 
C) increase employment 
D) safeguard the interests of special interest groups

Question 10

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

Accepted Answer

A) single market 
B) trade bloc 
C) foreign trade zone 
D) common market 
A) single market 
B) trade bloc 
C) foreign trade zone 
D) common market

Question 11

Members of ________ benefitted 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 12

Which of the following may allow a manufacturer to practice dumping?

Accepted Answer

A) countervailing duties 
B) subsidies 
C) currency control 
D) import license 
A) countervailing duties 
B) subsidies 
C) currency control 
D) import license

Question 13

________ are checkpoints at the ports of entry in each country where government officials inspect imported products and levy tariffs.

Accepted Answer

A) Nontariff trade barriers 
B) Customs 
C) Quotas 
D) Subsidies 
A) Nontariff trade barriers 
B) Customs 
C) Quotas 
D) Subsidies

Question 14

Tariffs rarely vary with the form of an imported product.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The global recession and financial crisis that began in 2008 arose largely from inadequate regulation and insufficient enforcement of current regulations in the banking and finance sectors.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Dumping violates WTO rules because it amounts to unfair competition.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) The government of Erbia imposes trade restrictions on the export of plutonium to certain countries. 
B) The government of Berylia imposes a trade barrier to curtail the import of low-priced products from manufacturers in the developed economies. 
C) The government of Argonia imposes investment barriers to safeguard special interest groups. 
D) The government of Rhodia requires foreign companies to enter its huge markets through joint ventures with local firms. 
A) The government of Erbia imposes trade restrictions on the export of plutonium to certain countries. 
B) The government of Berylia imposes a trade barrier to curtail the import of low-priced products from manufacturers in the developed economies. 
C) The government of Argonia imposes investment barriers to safeguard special interest groups. 
D) The government of Rhodia requires foreign companies to enter its huge markets through joint ventures with local firms.

Question 20

Nations with economies based on agriculture and textile manufacturing generate more economic revenue than do nations with many high-tech industries.

Accepted Answer

A) True 
 B)False

Governments support domestic industries by ________.

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

Which of the following situations is an example of country risk?

Tariffs and most nontariff trade barriers apply to FDI, whereas investment barriers apply to exporting.

What has NAFTA accomplished for its members?

Governments impose defensive barriers to ________.

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

Which of the following is the most likely reason for the establishment of the European Community?

Governments impose offensive barriers to ________.

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

Members of ________ benefitted the most from the maquiladora program.

Which of the following may allow a manufacturer to practice dumping?

________ are checkpoints at the ports of entry in each country where government officials inspect imported products and levy tariffs.

Tariffs rarely vary with the form of an imported product.

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

The global recession and financial crisis that began in 2008 arose largely from inadequate regulation and insufficient enforcement of current regulations in the banking and finance sectors.

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

Dumping violates WTO rules because it amounts to unfair competition.

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

Nations with economies based on agriculture and textile manufacturing generate more economic revenue than do nations with many high-tech industries.

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

Governments support domestic industries by ________.

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

Which of the following situations is an example of country risk?

Tariffs and most nontariff trade barriers apply to FDI, whereas investment barriers apply to exporting.

What has NAFTA accomplished for its members?

Governments impose defensive barriers to ________.

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

Which of the following is the most likely reason for the establishment of the European Community?

Governments impose offensive barriers to ________.

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

Members of ________ benefitted the most from the maquiladora program.

Which of the following may allow a manufacturer to practice dumping?

________ are checkpoints at the ports of entry in each country where government officials inspect imported products and levy tariffs.

Tariffs rarely vary with the form of an imported product.

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

The global recession and financial crisis that began in 2008 arose largely from inadequate regulation and insufficient enforcement of current regulations in the banking and finance sectors.

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

Dumping violates WTO rules because it amounts to unfair competition.

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

Nations with economies based on agriculture and textile manufacturing generate more economic revenue than do nations with many high-tech industries.

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