Exam 6: Business-Government Trade Relations

Which of the following is causing farmers to increase their efficiencies in many developed nations?

Governments not only promote trade by encouraging exports but can also encourage imports that the nation does not or cannot produce.

Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and becoming a self-sustaining country. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. -Freeland's efforts to provide opportunities to its emerging industries can be classified as which of the following motives?

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

Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, product price supports, or some other form is called a(n)________.

A restriction on the amount of a good that can enter or leave a country during a certain period of time is called a(n) ________.

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 wants to restrict unwanted trade, which of the following might be appropriate?

Describe the main political motives behind government intervention in trade.

Transit tariffs have been almost eliminated worldwide through trade agreements.

The pattern of imports and exports that occurs in the absence of trade barriers is called ________.

________ has come under attack by other European nations as well as by countries outside Europe for protecting its agricultural sector.

Supporters of strategic trade policy believe that government intervention can help companies take advantage of economies of scale and be the first movers in their industries.

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 creates a hybrid form of trade restriction a lower tariff rate for the certain quantity of imports and higher rate for quantities that exceed the quota it would be called a(n) ________.

Creation of foreign trade zones caused development of companies called maquiladoras along the border inside Mexico.

When one World Trade Organization member files a complaint against another, decisions are to be rendered in less than one year nine months if the case is urgent and 15 months if the case is appealed.

The most common type of tariff used by governments today is the ________ tariff.

Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and becoming a self-sustaining country. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. -Freeland's restriction of free trade could be attributed to ________.

A quota that a nation imposes on its exports, usually at the request of another nation, is called a(n) ________.

How do the nontariff barriers called local content requirements, administrative delays, and currency controls affect trade?

Supporters of strategic trade policy argue that it results in decreased national income.