Question 1

Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.

Accepted Answer

A) True 
 B)False  False

Question 2

Successful trade retaliation is most likely achieved ________.

Accepted Answer

A) on agricultural products 
B) on manufactured products 
C) by a large trading country 
D) by a small trading country 
A) on agricultural products 
B) on manufactured products 
C) by a large trading country 
D) by a small trading country C

Question 3

Unemployed workers are most apt to form a pressure group to support ________.

Accepted Answer

A) export restrictions 
B) import restrictions 
C) price limitations 
D) import subsidies 
A) export restrictions 
B) import restrictions 
C) price limitations 
D) import subsidies B

Question 4

Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.

Accepted Answer

A) True 
 B)False

Question 5

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Accepted Answer

A) specific duty 
B) effective tariff 
C) ad valorem duty 
D) compound tariff 
A) specific duty 
B) effective tariff 
C) ad valorem duty 
D) compound tariff

Question 6

Exporting below cost or below the home country price is called ________.

Accepted Answer

A) countertrade 
B) an export-led development policy 
C) a strategic trade policy 
D) dumping 
A) countertrade 
B) an export-led development policy 
C) a strategic trade policy 
D) dumping

Question 7

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

Accepted Answer

A) it is difficult to identify industries that have a high probability of reaching competitiveness 
B) assistance should be given only if entry barriers to new firms are very low 
C) the protecting countries lose too much revenue from import duties 
D) a short product life cycle makes the industry quickly noncompetitive 
A) it is difficult to identify industries that have a high probability of reaching competitiveness 
B) assistance should be given only if entry barriers to new firms are very low 
C) the protecting countries lose too much revenue from import duties 
D) a short product life cycle makes the industry quickly noncompetitive

Question 8

What is dumping? What are the possible effects of dumping on a country's economy?

Accepted Answer

When companies export below cost or belo

Question 9

The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.

Accepted Answer

A) True 
 B)False

Question 10

The most common type of tariff is the ________ tariff.

Accepted Answer

A) export 
B) import 
C) transit 
D) ad valorem 
A) export 
B) import 
C) transit 
D) ad valorem

Question 11

In addition to protection, tariffs serve to ________.

Accepted Answer

A) generate revenue 
B) subsidize exports 
C) subsidize imports 
D) increase consumption 
A) generate revenue 
B) subsidize exports 
C) subsidize imports 
D) increase consumption

Question 12

Export-led development refers to ________.

Accepted Answer

A) a country's efforts to promote its exports in order to reduce its trade deficits 
B) a policy to promote domestic production of goods that would otherwise be imported 
C) a program to promote industries with export potential 
D) decreases in infrastructure development due to the loss of revenue from export tariffs 
A) a country's efforts to promote its exports in order to reduce its trade deficits 
B) a policy to promote domestic production of goods that would otherwise be imported 
C) a program to promote industries with export potential 
D) decreases in infrastructure development due to the loss of revenue from export tariffs

Question 13

In most cases, trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

Accepted Answer

A) True 
 B)False

Question 14

Most countries have agreed on how to assess values when their customs agents levy tariffs.Which of the following best expresses this agreement?

Accepted Answer

A) They should use the value of similar goods arriving at about the same time. 
B) They should use the declared invoice price unless they doubt its authenticity. 
C) They should assess a value based on local costs to produce a similar product. 
D) They should assess a value based on the expected final consumer sales price. 
A) They should use the value of similar goods arriving at about the same time. 
B) They should use the declared invoice price unless they doubt its authenticity. 
C) They should assess a value based on local costs to produce a similar product. 
D) They should assess a value based on the expected final consumer sales price.

Question 15

Which of the following is a problem with the infant-industry argument for protection?

Accepted Answer

A) Most developed countries increasingly have a larger portion of retirees than youth. 
B) Consumer groups become very active in protesting the higher prices that result during infancy. 
C) Other countries retaliate by limiting exports of technology needed by the infant industry producers. 
D) If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection. 
A) Most developed countries increasingly have a larger portion of retirees than youth. 
B) Consumer groups become very active in protesting the higher prices that result during infancy. 
C) Other countries retaliate by limiting exports of technology needed by the infant industry producers. 
D) If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.

Question 16

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Accepted Answer

A) True 
 B)False

Question 17

Import substitution is a program promoting local production of products that would otherwise be imported.

Accepted Answer

A) True 
 B)False

Question 18

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

Accepted Answer

One problem with restricting imports in

Question 19

Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.

Accepted Answer

A) True 
 B)False

Question 20

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Accepted Answer

A) True 
 B)False

Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.

Successful trade retaliation is most likely achieved ________.

Unemployed workers are most apt to form a pressure group to support ________.

Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Exporting below cost or below the home country price is called ________.

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

What is dumping? What are the possible effects of dumping on a country's economy?

The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.

The most common type of tariff is the ________ tariff.

In addition to protection, tariffs serve to ________.

Export-led development refers to ________.

In most cases, trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

Most countries have agreed on how to assess values when their customs agents levy tariffs.Which of the following best expresses this agreement?

Which of the following is a problem with the infant-industry argument for protection?

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Import substitution is a program promoting local production of products that would otherwise be imported.

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 7: Governmental Influence on Trade

Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.

Successful trade retaliation is most likely achieved ________.

Unemployed workers are most apt to form a pressure group to support ________.

Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.

Which term refers to a tariff or duty assessed as a percentage of an item's value?

Exporting below cost or below the home country price is called ________.

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

What is dumping? What are the possible effects of dumping on a country's economy?

The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.

The most common type of tariff is the ________ tariff.

In addition to protection, tariffs serve to ________.

Export-led development refers to ________.

In most cases, trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.

Most countries have agreed on how to assess values when their customs agents levy tariffs.Which of the following best expresses this agreement?

Which of the following is a problem with the infant-industry argument for protection?

Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.

Import substitution is a program promoting local production of products that would otherwise be imported.

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.

The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters