Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

A country imposes a tariff on goods that it sells abroad at the request of another nation.This is an example of a(n)________.

Accepted Answer

A)  embargo 
B)  ad valorem tariff 
C)  compound tariff 
D)  voluntary export restraint 
A)  embargo 
B)  ad valorem tariff 
C)  compound tariff 
D)  voluntary export restraint

Question 4

Products that are of use in both industrial and military applications are designated as dual-use products.

Accepted Answer

A) True 
 B)False

Question 5

The U.S.government has decided to impose a tariff rate quota on sugar imports into the United States.Which of the following would benefit from this decision?

Accepted Answer

A)  soft drink producers 
B)  domestic sugar producers 
C)  steel producers 
D)  consumers of sugar products 
A)  soft drink producers 
B)  domestic sugar producers 
C)  steel producers 
D)  consumers of sugar products

Question 6

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Accepted Answer

A) True 
 B)False

Question 7

Managers should understand the effect of trade protectionism because ________.

Accepted Answer

A)  trade protectionism may limit the number of people permitted to practice a specific profession 
B)  trade protectionism requires the payment of high insurance rates to transport goods internationally 
C)  trade protectionism may prevent companies' enactment of merger and acquisition agreements 
D)  trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers 
A)  trade protectionism may limit the number of people permitted to practice a specific profession 
B)  trade protectionism requires the payment of high insurance rates to transport goods internationally 
C)  trade protectionism may prevent companies' enactment of merger and acquisition agreements 
D)  trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers

Question 8

Which of the following statements is true of tariffs?

Accepted Answer

A)  Tariffs increase an imported product's appeal to buyers. 
B)  Transit tariffs are the most widely-levied tariffs. 
C)  Ad valorem tariffs are levied as a specific fee for each unit of an imported product. 
D)  Export tariffs are used by countries when they believe an export's price is lower than it should be. 
A)  Tariffs increase an imported product's appeal to buyers. 
B)  Transit tariffs are the most widely-levied tariffs. 
C)  Ad valorem tariffs are levied as a specific fee for each unit of an imported product. 
D)  Export tariffs are used by countries when they believe an export's price is lower than it should be.

Question 9

A disadvantage of protection from import competition is the added cost of continuing to produce a good domestically that could be supplied more efficiently by an international supplier.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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.
-Freeland's protection of its national identity is an example of a(n)________.

Accepted Answer

A)  political motive 
B)  economic motive 
C)  cultural motive 
D)  social motive 
A)  political motive 
B)  economic motive 
C)  cultural motive 
D)  social motive

Question 12

Which of the following is an import tariff?

Accepted Answer

A)  transit tariff 
B)  ad valorem tariff 
C)  sua sponte tariff 
D)  complex tariff 
A)  transit tariff 
B)  ad valorem tariff 
C)  sua sponte tariff 
D)  complex tariff

Question 13

The purpose of ________ is to force companies from other nations to use local resources in their production processes,particularly labor.

Accepted Answer

A)  administrative delays 
B)  currency controls 
C)  local content requirements 
D)  voluntary export restraints 
A)  administrative delays 
B)  currency controls 
C)  local content requirements 
D)  voluntary export restraints

Question 14

Explain why governments impose restrictions on free trade.

Accepted Answer

Governments impose restrictions on free

Question 15

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.
-Which of the following is the most likely reason for Konesia's government to impose an import quota?

Accepted Answer

A)  to maintain adequate supplies of a product in the home market 
B)  to maintain market shares and prices of domestic producers 
C)  to restrict the supply of a product to world markets 
D)  to maintain the exports of a product at target levels 
A)  to maintain adequate supplies of a product in the home market 
B)  to maintain market shares and prices of domestic producers 
C)  to restrict the supply of a product to world markets 
D)  to maintain the exports of a product at target levels

Question 16

A(n)________ tariff is levied as a percentage of the value of an imported product.

Accepted Answer

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

Question 17

Describe the three categories of tariffs,and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States.

Accepted Answer

A tariff is a government tax levied on a

Question 18

Customs duties decrease the total amount of a good's production cost.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true of tariffs?

Accepted Answer

A)  They are the major source of government revenue in developed nations. 
B)  They increase products' appeal to buyers. 
C)  They lower the effective prices of imports. 
D)  They protect domestic producers. 
A)  They are the major source of government revenue in developed nations. 
B)  They increase products' appeal to buyers. 
C)  They lower the effective prices of imports. 
D)  They protect domestic producers.

Question 20

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.
-Which of the following would be Konesia's least appropriate method to restrict unwanted trade?

Accepted Answer

A)  introduce an administrative delay 
B)  impose a quota 
C)  reduce tariffs 
D)  impose a currency control 
A)  introduce an administrative delay 
B)  impose a quota 
C)  reduce tariffs 
D)  impose a currency control

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

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

A country imposes a tariff on goods that it sells abroad at the request of another nation.This is an example of a(n)________.

Products that are of use in both industrial and military applications are designated as dual-use products.

The U.S.government has decided to impose a tariff rate quota on sugar imports into the United States.Which of the following would benefit from this decision?

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Managers should understand the effect of trade protectionism because ________.

Which of the following statements is true of tariffs?

A disadvantage of protection from import competition is the added cost of continuing to produce a good domestically that could be supplied more efficiently by an international supplier.

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

Which of the following is an import tariff?

The purpose of ________ is to force companies from other nations to use local resources in their production processes,particularly labor.

Explain why governments impose restrictions on free trade.

A(n)________ tariff is levied as a percentage of the value of an imported product.

Describe the three categories of tariffs,and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States.

Customs duties decrease the total amount of a good's production cost.

Which of the following statements is true of tariffs?

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

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

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

A country imposes a tariff on goods that it sells abroad at the request of another nation.This is an example of a(n)________.

Products that are of use in both industrial and military applications are designated as dual-use products.

The U.S.government has decided to impose a tariff rate quota on sugar imports into the United States.Which of the following would benefit from this decision?

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Managers should understand the effect of trade protectionism because ________.

Which of the following statements is true of tariffs?

A disadvantage of protection from import competition is the added cost of continuing to produce a good domestically that could be supplied more efficiently by an international supplier.

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

Which of the following is an import tariff?

The purpose of ________ is to force companies from other nations to use local resources in their production processes,particularly labor.

Explain why governments impose restrictions on free trade.

A(n)________ tariff is levied as a percentage of the value of an imported product.

Describe the three categories of tariffs,and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States.

Customs duties decrease the total amount of a good's production cost.

Which of the following statements is true of tariffs?

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