Question 1

Describe the different types of tariffs and provide an example of each.

Accepted Answer

We can classify a tariff into one of thr

Question 2

Purposely understaffing customs offices to cause time delays,requiring special licenses that take a long time to obtain,and requiring air carriers to land at inconvenient airports are all examples of ________.

Accepted Answer

A)  local content requirements 
B)  import quotas 
C)  administrative delays 
D)  voluntary export restraints 
A)  local content requirements 
B)  import quotas 
C)  administrative delays 
D)  voluntary export restraints

Question 3

Which of the following will add to the cost of an imported product by levying an additional tax upon it?

Accepted Answer

A)  tariffs 
B)  quotas 
C)  local content requirements 
D)  embargoes 
A)  tariffs 
B)  quotas 
C)  local content requirements 
D)  embargoes

Question 4

According to the ________ argument,as an industry grows and matures,it gains the knowledge it needs to become more innovative,efficient,and competitive.

Accepted Answer

A)  maturing industry 
B)  infant industry 
C)  standardized product 
D)  developing economy 
A)  maturing industry 
B)  infant industry 
C)  standardized product 
D)  developing economy

Question 5

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

Accepted Answer

A)  local content requirements 
B)  administrative delays 
C)  voluntary export restraints 
D)  import quotas 
A)  local content requirements 
B)  administrative delays 
C)  voluntary export restraints 
D)  import quotas

Question 6

The most common economic reasons for nations' attempts to influence international trade are the protection of young industries from competition and the promotion of a strategic trade policy.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following ways did the Uruguay Round of Negotiations modify the original General Agreement on Tariffs and Trade (GATT)treaty?

Accepted Answer

A)  It helped standardize intellectual property rules around the world. 
B)  It called on developing and least-developed economies to cut agricultural tariffs significantly. 
C)  It relaxed the additional tariffs imposed on companies charged with dumping. 
D)  It increased barriers to trade in all developed, developing and least-developed nations. 
A)  It helped standardize intellectual property rules around the world. 
B)  It called on developing and least-developed economies to cut agricultural tariffs significantly. 
C)  It relaxed the additional tariffs imposed on companies charged with dumping. 
D)  It increased barriers to trade in all developed, developing and least-developed nations.

Question 8

A(n)________ tariff (or duty)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.

Accepted Answer

A)  specific 
B)  compound 
C)  ad valorem 
D)  transit 
A)  specific 
B)  compound 
C)  ad valorem 
D)  transit

Question 9

Explain why job protection is a political motive for governments to restrict free trade.Why might a government interested in job protection insist on local content requirements for international firms doing business in that country?

Accepted Answer

Government officials often make trade-re

Question 10

The protection of infant industries by a nation's government can cause more economic harm than good.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following countries is seen as a threat to national cultures around the world?

Accepted Answer

A)  United States 
B)  India 
C)  Russia 
D)  France 
A)  United States 
B)  India 
C)  Russia 
D)  France

Question 12

Which of the following is an example of a dual use product?

Accepted Answer

A)  a blowdryer 
B)  a GPS navigation device 
C)  a food processor 
D)  a vacuum cleaner 
A)  a blowdryer 
B)  a GPS navigation device 
C)  a food processor 
D)  a vacuum cleaner

Question 13

Scenario: Konesia Joins the World
Konesia, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance so that local businesses and industries are not harmed.
-If Konesia chooses to levy tariffs as a percentage of the stated price of an imported product,this would be an example of a(n)________.

Accepted Answer

A)  compound tariff 
B)  specific tariff 
C)  ad valorem tariff 
D)  tariff-quota 
A)  compound tariff 
B)  specific tariff 
C)  ad valorem tariff 
D)  tariff-quota

Question 14

The automobile industry is typically protected for national security reasons.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true of export financing?

Accepted Answer

A)  Small businesses that have just started to export are financially stable and seldom require financing from government agencies. 
B)  The Ex-Im Bank finances the export activities of companies all over the world. 
C)  Governments usually offer loans to exporters with above-market interest rates. 
D)  Governments may promote exports by offering loan guarantees. 
A)  Small businesses that have just started to export are financially stable and seldom require financing from government agencies. 
B)  The Ex-Im Bank finances the export activities of companies all over the world. 
C)  Governments usually offer loans to exporters with above-market interest rates. 
D)  Governments may promote exports by offering loan guarantees.

Question 16

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.
-Excelsior's Limited tried to sell its product in Canada,but was told that at least forty percent of the product must be manufactured in Canada.This is an example of a(n)________.

Accepted Answer

A)  administrative delay 
B)  local content requirement 
C)  tariff 
D)  embargo 
A)  administrative delay 
B)  local content requirement 
C)  tariff 
D)  embargo

Question 17

Government trade promotion agencies ________.

Accepted Answer

A)  enable imports at discounts 
B)  set up foreign trade zones across the country 
C)  advertise in other countries to promote the nation's exports 
D)  place voluntary export restraints on companies that fail to export adequately 
A)  enable imports at discounts 
B)  set up foreign trade zones across the country 
C)  advertise in other countries to promote the nation's exports 
D)  place voluntary export restraints on companies that fail to export adequately

Question 18

Restrictions on the convertibility of one currency into others is called currency controls.

Accepted Answer

A) True 
 B)False

Question 19

Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?

Accepted Answer

Financial assistance to domestic produce

Question 20

The term protectionism,when applied to international trade,refers to ________.

Accepted Answer

A)  governmental restrictions and competitive support actions to affect trade flows 
B)  payments to dock workers to prevent pilferage of imported shipments 
C)  border checks to prevent entry of illegal aliens 
D)  methods used to prevent intellectual property theft 
A)  governmental restrictions and competitive support actions to affect trade flows 
B)  payments to dock workers to prevent pilferage of imported shipments 
C)  border checks to prevent entry of illegal aliens 
D)  methods used to prevent intellectual property theft

Describe the different types of tariffs and provide an example of each.

Purposely understaffing customs offices to cause time delays,requiring special licenses that take a long time to obtain,and requiring air carriers to land at inconvenient airports are all examples of ________.

Which of the following will add to the cost of an imported product by levying an additional tax upon it?

According to the ________ argument,as an industry grows and matures,it gains the knowledge it needs to become more innovative,efficient,and competitive.

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

The most common economic reasons for nations' attempts to influence international trade are the protection of young industries from competition and the promotion of a strategic trade policy.

In which of the following ways did the Uruguay Round of Negotiations modify the original General Agreement on Tariffs and Trade (GATT)treaty?

A(n)________ tariff (or duty)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.

Explain why job protection is a political motive for governments to restrict free trade.Why might a government interested in job protection insist on local content requirements for international firms doing business in that country?

The protection of infant industries by a nation's government can cause more economic harm than good.

Which of the following countries is seen as a threat to national cultures around the world?

Which of the following is an example of a dual use product?

The automobile industry is typically protected for national security reasons.

Which of the following statements is true of export financing?

Government trade promotion agencies ________.

Restrictions on the convertibility of one currency into others is called currency controls.

Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?

The term protectionism,when applied to international trade,refers to ________.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 6: Political Economy of Trade

Describe the different types of tariffs and provide an example of each.

Purposely understaffing customs offices to cause time delays,requiring special licenses that take a long time to obtain,and requiring air carriers to land at inconvenient airports are all examples of ________.

Which of the following will add to the cost of an imported product by levying an additional tax upon it?

According to the ________ argument,as an industry grows and matures,it gains the knowledge it needs to become more innovative,efficient,and competitive.

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

The most common economic reasons for nations' attempts to influence international trade are the protection of young industries from competition and the promotion of a strategic trade policy.

In which of the following ways did the Uruguay Round of Negotiations modify the original General Agreement on Tariffs and Trade (GATT)treaty?

A(n)________ tariff (or duty)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.

Explain why job protection is a political motive for governments to restrict free trade.Why might a government interested in job protection insist on local content requirements for international firms doing business in that country?

The protection of infant industries by a nation's government can cause more economic harm than good.

Which of the following countries is seen as a threat to national cultures around the world?

Which of the following is an example of a dual use product?

The automobile industry is typically protected for national security reasons.

Which of the following statements is true of export financing?

Government trade promotion agencies ________.

Restrictions on the convertibility of one currency into others is called currency controls.

Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?

The term protectionism,when applied to international trade,refers to ________.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters