Exam 6: Business-Government Trade Relations

A voluntary export restraint (VER) is the most restrictive nontariff trade barrier available and is typically applied to accomplish military goals.

The theory of comparative advantage states that the country having a comparative advantage in the production of a certain good will produce that good when barriers to trade do not exist.

All of the following are true EXCEPT ________.

Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, and product price supports are all types of antidumping duties.

Industries considered essential to ________ often receive government-sponsored protection for political reasons.

Restrictions on the convertibility of a currency into other currencies are called ________.

Which of the following is an economic motive for nations' attempts to influence international trade?

Scenario: Excelsior's Limited Excelsior's Limited, a maker of health and beauty aids, is expanding its presence in several countries around the world. Excelsior's president has been surprised at some of the responses the company has received from other countries. -Excelsior's Limited tried to sell its product in Canada, but was told the product must be at least 40 percent locally made. This is an example of a(n) ________.

The infant industry argument says government financial support is not necessary for small, promising companies because they find it is easy to obtain funding in capital markets.

Through the ________, companies investing abroad can insure against loss of assets due to expropriation; currency inconvertibility; and war, revolution, and insurrection.

Foreign trade zones are often intended to increase ________ in a nation.

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

Which of the following is NOT a reason why countries impose export quotas?

The pattern of imports and exports that would result in the absence of trade barriers is called free trade.

Which of the following statements is NOT true?

Regulatory controls or bureaucratic rules designed to impair the rapid flow of imports into a country are called ________.

Which of these is the main cultural motive behind government intervention in trade?

A(n) ________ is an additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy.

The ________ altered U.S. trade policy from a stance of free trade to one of protectionism.

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