Exam 6: Business-Government Trade Relations

Describe each instrument governments use to promote trade.

French law bans foreign-language words from virtually all business and government communications, radio, TV broadcasts, public announcements, and advertising messages.

Which of the following government agencies provides insurance services to exporters and other companies investing abroad?

While producers that receive tariff protection can gain a price advantage initially, in the long run protection can keep them from increasing efficiency.

Taken together, small businesses account for over 80 percent of all transactions handled by the Export-Import Bank.

Unwanted cultural influence in a nation is referred to as ________.

Protecting infant industries can cause domestic companies to become complacent toward innovation.

Businesses can obtain financing from the Export-Import Bank through all the following EXCEPT the ________.

The main cultural motives behind government intervention in trade include protecting jobs and preserving national security.

Using tariffs to generate government revenue is most common among ________.

An additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy is called a(n) ________.

The ________ finances the export activities of companies in the United States and offers them reasonably priced insurance.

The infant industry argument states that a country's emerging industries need protection from international competition during their development phase until they become sufficiently competitive internationally.

________ is typically protected for national security reasons because a nation importing food supplies could face starvation in times of war.