Exam 6: Business-Government Trade Relations

A lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota is called a(n) ________.

Although dumping is an act by a company, not a country, the World Trade Organization punishes the country where the company doing the dumping is based.

According to its supporters, ________ helped South Korea build its chaebol.

The purpose of local content requirements is to force companies from other nations to employ local resources in their production processes.

A product having both industrial and military applications is called a ________ product.

According to the ________, a country's emerging industries need protection from international competition during their development phase until they become significantly competitive internationally.

Laws stipulating that a specified amount of a good or service be supplied by producers in the domestic market are called ________.

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

Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.

Governments impose trade barriers for all of the following reasons EXCEPT ________.

Given that agriculture involves very little technology and sophistication, exposing agribusiness to market forces is a recipe for failure.

Tariffs can be classified into all of the following categories EXCEPT ________.

Which of the following industries is typically protected for national security reasons?

An embargo is the most restrictive nontariff barrier available and is typically applied to accomplish political goals.

The main disadvantage of protection from import competition is the added cost of continuing to produce a good or service that could be supplied more efficiently by an international supplier.

Products designated as dual use require ________ before export can take place.

A designated geographic region in which merchandise is allowed to pass through with lower custom duties and/or fewer customs procedures is called a(n) ________.

Protecting companies from international competition often results in consumers paying ________ for products because of less competition.

Explain what is meant by dumping and the role of the World Trade Organization when charges of dumping are made.

Agriculture is typically protected for national security reasons.