Exam 6: Business-Government Trade Relations

The ________ was a treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

All of the following statements are true of local content requirements EXCEPT ________.

Legitimate national security reasons for intervention can be difficult to argue against, particularly when they have the support of most of a country's people.

Which of the following is NOT a true statement about embargoes?

More than any other nation, the United States is seen as a threat to national cultures around the world.

The ________ is the international organization that regulates trade between nations.

Nations often restrict trade in goods and services to achieve cultural objectives, the most common being protection of national identity.

A common purpose of many companies' facilities in foreign trade zones is final product assembly.

________ can reduce imports by stipulating an exchange rate that is unfavorable to potential importers.

Government trade promotion agencies do all of the following EXCEPT ________.

When a company exports a product at a price lower than the price normally charged in its domestic market, or lower than the cost of production, it is said to be ________.

When a product has both industrial and military applications, they are said to have ________.

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

Which of these countries are seen as a threat to national cultures around the world?

________ are trade barriers that are used extensively in the trade of agricultural products.

What are voluntary export restraints and how are they used?

The General Agreement on Tariffs and Trade (GATT) was a treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade, and which has since been absorbed into the World Trade Organization (WTO).

Protection of domestic industries in Japan has caused a two-tier economy to emerge.

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. -The government's effort to protect local jobs describes which of the following motives?

Protecting jobs, preserving national security, responding to other nations' unfair trade practices, and gaining influence over other nations are all political motives behind government intervention in trade.