Exam 6: Business-Government Trade Relations

The ________ import materials or parts from the United States duty free, process them to some extent in Mexico, and export them back to the United States with duties charged only on the value added to the product in Mexico.

A countervailing duty is an additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy.

French law bans foreign-language words from virtually ________.

Discuss the role of the Export-Import Bank of the United States in international trade.

A tariff levied as a percentage of the stated price of an imported product is called a(n) ________ tariff.

Who benefits from tariffs?

Countries normally self impose a(n) ________ in response to the threat of an import tariff or total ban on a product by an importing nation.

Export quotas hurt consumers in importing nations because of reduced selection and perhaps higher prices.

The three main goals of the World Trade Organization are to help the free flow of trade, to help negotiate further opening of markets, and to settle trade disputes between its members.

Outline the benefits and drawbacks of strategic trade policy.

Each of the following can be the result of protection from international competition EXCEPT ________.

The ________ finances the export activities of companies in the United States and offers insurance on foreign accounts receivable.

A common purpose of many companies' facilities in foreign trade zones is ________.

Customs duties ________ the total amount of a good's production cost and increase the time needed to get it to market.

A(n) ________ tariff is a tariff levied by the government of a country that a product is passing through on its way to its final destination.

Which of the following is NOT true of governments?

A ban on trade in one or more products with a particular country is called a(n) ________.

Which of the following is NOT a problem associated with the infant industry argument?

Scenario: Badland Joins the World Badland, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance where local businesses and industries are not destroyed. -If Badland chooses to levy tariffs as a percentage of the stated price of an imported product, it would be called a(n) ________.

A primary reason why the United States maintains its embargo on Cuba is the potential to influence internal politics.