Exam 6: Business-Government Trade Relations

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

The infant industry argument makes it easy to distinguish between industries that are worth protecting and those that are not.

A tariff levied by the government of a country that is exporting a product is called a(n)________.

A ________ tariff is levied on an imported product and calculated partly as a percentage of its stated price and partly as a specific fee for each unit.

A(n) ________ is a government tax levied on a product as it enters or leaves a country.

The ________ argument says that a country's emerging industries need protection from international competition during their development.

When a government guarantees it will repay the loan of a company if the company should default on repayment, it is called a(n) ________.

A key component of the World Trade Organization that was carried over from the General Agreement on Tariffs and Trade (GATT) is the principle of non-discrimination called ________.

Industries considered essential to national security often receive government-sponsored protection.

Describe how embargoes work and why they are seldom used today.

Restricting the convertibility of one currency into others is called administrative delay.

Which of the following is NOT an instrument that government uses to promote trade?

When a company exports a product at a price higher than the price normally charged in its domestic market, it is said to be dumping.

When products have both military and industrial applications, they are designated dual-use products.

Through the World Trade Organization, exporters and those companies investing abroad can insure against loss of assets in a nation.

________ is the unwanted cultural influence in a nation that can cause great distress and cause governments to block imports it believes to be harmful.

If one government thinks another nation is not playing fairly, it will often threaten to play unfair unless certain concessions are agreed.

Describe the importance of the Uruguay Round of Negotiations. Briefly explain the agreements on services, intellectual property, and agricultural subsidies.

If a country stipulates that a specified amount of a good or service be supplied by producers in the domestic market, we call this restriction device a(n) ________.

Which of the following is NOT a political motive behind government intervention in trade?