Question 1

The most common economic reason for nations attempts to influence international trade is preserving national security.

Accepted Answer

A) True 
 B)False

Question 2

A(n)________ tariff is levied as a percentage of the stated price 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 3

A(n)________ tariff is levied as a particular fee for each unit 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 4

________ refers to the unwanted cultural influence in a nation that can cause great distress and lead governments to block imports it believes to be harmful.

Accepted Answer

A) Cultural imperialism 
B) Cultural protectionism 
C) Dumping 
D) Capitalism 
A) Cultural imperialism 
B) Cultural protectionism 
C) Dumping 
D) Capitalism

Question 5

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following statements is true of foreign trade zone?

Accepted Answer

A) It is an area through which merchandise is allowed to pass with fewer procedures but higher taxes. 
B) These areas provide very limited employment opportunities. 
C) Goods imported into these zones require import licenses and are subject to import duties. 
D) International companies can store goods in these zones without incurring taxes,before shipping them to other countries. 
A) It is an area through which merchandise is allowed to pass with fewer procedures but higher taxes. 
B) These areas provide very limited employment opportunities. 
C) Goods imported into these zones require import licenses and are subject to import duties. 
D) International companies can store goods in these zones without incurring taxes,before shipping them to other countries.

Question 8

A country that believes an imported product is being sold in its market for a price lower than the cost of production for the product may impose a(n)________ in retaliation.

Accepted Answer

A) countervailing duty 
B) ad valorem tariff 
C) antidumping duty 
D) compound tariff 
A) countervailing duty 
B) ad valorem tariff 
C) antidumping duty 
D) compound tariff

Question 9

Financial assistance given to domestic producers in the form of cash payments is an example of a(n)________.

Accepted Answer

A) ad valorem tariff 
B) quota 
C) subsidy 
D) export tariff 
A) ad valorem tariff 
B) quota 
C) subsidy 
D) export tariff

Question 10

Tariffs tend to exact a cost on countries as a whole because they lessen citizens' gains from trade.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) dumping 
B) ringfencing 
C) hoarding 
D) cost-shifting 
A) dumping 
B) ringfencing 
C) hoarding 
D) cost-shifting

Question 12

Discuss the benefits and drawbacks of strategic trade policy.How are the drawbacks of subsidies similar to the drawbacks of strategic trade policy?

Accepted Answer

Benefits of Strategic Trade Policy-Suppo

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) countervailing duty 
B) ad valorem tariff 
C) antidumping duty 
D) compound tariff 
A) countervailing duty 
B) ad valorem tariff 
C) antidumping duty 
D) compound tariff

Question 15

One of the main goals of the World Trade Organization is to ________.

Accepted Answer

A) encourage dumping among trading nations 
B) restrict the free flow of trade 
C) provide favorable terms of trade to a few selected countries 
D) settle trade disputes among its members 
A) encourage dumping among trading nations 
B) restrict the free flow of trade 
C) provide favorable terms of trade to a few selected countries 
D) settle trade disputes among its members

Question 16

A common purpose of many companies' facilities in foreign trade zones is ________.

Accepted Answer

A) final product assembly 
B) acquisition of raw materials 
C) product design 
D) product manufacturing 
A) final product assembly 
B) acquisition of raw materials 
C) product design 
D) product manufacturing

Question 17

Which of the following is true of government interventions in a country's trade practices?

Accepted Answer

A) A major economic motive behind government intervention in trade is the protection of jobs. 
B) A major political motive behind government intervention in trade is the protection of infant industries. 
C) Government interventions help companies take advantage of economies of scale and be the first movers in their industries. 
D) Governments intervene to protect only imports,as the protection of exports is handled by private agencies. 
A) A major economic motive behind government intervention in trade is the protection of jobs. 
B) A major political motive behind government intervention in trade is the protection of infant industries. 
C) Government interventions help companies take advantage of economies of scale and be the first movers in their industries. 
D) Governments intervene to protect only imports,as the protection of exports is handled by private agencies.

Question 18

Which of the following is a result of the protection of domestic companies from international competition?

Accepted Answer

A) Consumers need to pay lesser for products. 
B) There are increased incentives to cut production costs and improve quality. 
C) Companies become more reliant on protection. 
D) Protection increases a company's incentives to obtain the knowledge it needs to become more competitive. 
A) Consumers need to pay lesser for products. 
B) There are increased incentives to cut production costs and improve quality. 
C) Companies become more reliant on protection. 
D) Protection increases a company's incentives to obtain the knowledge it needs to become more competitive.

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

The most common economic reason for nations attempts to influence international trade is preserving national security.

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

A(n)________ tariff is levied as a particular fee for each unit of an imported product.

________ refers to the unwanted cultural influence in a nation that can cause great distress and lead governments to block imports it believes to be harmful.

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Which of the following statements is true of export financing?

Which of the following statements is true of foreign trade zone?

A country that believes an imported product is being sold in its market for a price lower than the cost of production for the product may impose a(n)________ in retaliation.

Financial assistance given to domestic producers in the form of cash payments is an example of a(n)________.

Tariffs tend to exact a cost on countries as a whole because they lessen citizens' gains from trade.

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

Discuss the benefits and drawbacks of strategic trade policy.How are the drawbacks of subsidies similar to the drawbacks of strategic trade policy?

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

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

One of the main goals of the World Trade Organization is to ________.

A common purpose of many companies' facilities in foreign trade zones is ________.

Which of the following is true of government interventions in a country's trade practices?

Which of the following is a result of the protection of domestic companies from international competition?

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

Globalization

Cross-Cultural Business

Politics, Law, and Business Ethics

Economics and Emerging Markets

International Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money 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: Business-Government Trade Relations

The most common economic reason for nations attempts to influence international trade is preserving national security.

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

A(n)________ tariff is levied as a particular fee for each unit of an imported product.

________ refers to the unwanted cultural influence in a nation that can cause great distress and lead governments to block imports it believes to be harmful.

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Which of the following statements is true of export financing?

Which of the following statements is true of foreign trade zone?

A country that believes an imported product is being sold in its market for a price lower than the cost of production for the product may impose a(n)________ in retaliation.

Financial assistance given to domestic producers in the form of cash payments is an example of a(n)________.

Tariffs tend to exact a cost on countries as a whole because they lessen citizens' gains from trade.

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

Discuss the benefits and drawbacks of strategic trade policy.How are the drawbacks of subsidies similar to the drawbacks of strategic trade policy?

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

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

One of the main goals of the World Trade Organization is to ________.

A common purpose of many companies' facilities in foreign trade zones is ________.

Which of the following is true of government interventions in a country's trade practices?

Which of the following is a result of the protection of domestic companies from international competition?

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

Globalization

Cross-Cultural Business

Politics, Law, and Business Ethics

Economics and Emerging Markets

International Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money 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