Exam 6: Business-Government Trade Relations

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent.Imports of rice above the quota limit are charged a tariff of 60 percent.This is an example of a(n)________.

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

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

Describe each instrument that governments use to promote trade.

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

An embargo is the most restrictive nontariff trade barrier available.

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

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?

Which of the following statements is true about cultural influences?

Explain why governments impose restrictions on free trade.

Which of the following best describes the infant industry argument?

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

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)________.

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

A voluntary export restraint refers to a quota that a nation imposes on its exports,usually at the request of another nation.

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

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.

Which of the following is true regarding the protection of infant industries from international competition?

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

Tariff-quotas are used extensively in the trade of ________.