Exam 6: Political Economy of Trade

Tariffs are taxes placed on goods being imported into a country.A tariff can act as a barrier to trade by increasing the cost of the imported goods to the consumers.

Which of the following financial companies in the United States is involved in activities of selling of goods abroad,and offers insurance on foreign accounts receivable?

Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. 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. -Which of the following motives is least likely attributed to Freeland's restriction on free trade?

Using tariffs to generate government revenue is most common among ________.

A(n)________ is an absolute ban on the exporting and importing of goods to a particular destination.

Tariffs are a source of government revenue mostly among developing nations.

A(n)________ is a geographic area where imported or exported goods receive preferential tariff treatment.

What are voluntary export restraints and how are they used?

The Export-Import Bank of the United States provides financing for U.S.exports through direct loans and loan guarantees.

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

Describe the purpose of a foreign trade zone.How is it used to promote trade?

The most common tariffs used today are the ________ tariffs.

Consumers are benefitted when a government imposes import quotas on products.

A requirement that all WTO members extend the same favorable terms of trade to all members that they extend to any single member is called ________.

A(n)________ is an absolute ban on the exporting and importing of goods to a particular destination.

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

Which of the following statements is true of local content requirements?

Write a short note on the World Trade Organization and its influence on the environment.

Scenario: Excelsior's Limited Excelsior's Limited, a manufacturer of health and beauty aids, is expanding its presence in several countries around the world. Excelsior's president is surprised at some of the responses the company is receiving from other countries. -When Excelsior's Limited tried to convert its earnings from one country,the government stipulated that the company had to exchange its currency at a very unfavorable rate.This is an example of a(n)________.

A foreign trade zone is primarily used by governments to ________.