Question 1

The automobile industry is typically protected for national security reasons.

Accepted Answer

A) True 
 B)False  False

Question 2

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 D

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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?

Accepted Answer

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

Question 5

A designated geographic region in which merchandise is allowed to pass with lower customs duties and/or fewer custom procedures is called a(n)________.

Accepted Answer

A) foreign trade zone 
B) free trade area 
C) single market 
D) open border 
A) foreign trade zone 
B) free trade area 
C) single market 
D) open border

Question 6

What are voluntary export restraints and how are they used?

Accepted Answer

A unique version of the export quota is

Question 7

Industries considered essential to national security often receive government-sponsored protection.

Accepted Answer

A) True 
 B)False

Question 8

A restriction on the amount of a good that can enter or leave a country during a certain period of time is called a(n)________.

Accepted Answer

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

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which of the following is a method of restricting trade?

Accepted Answer

A) export financing 
B) local content requirements 
C) subsidy 
D) foreign trade zones 
A) export financing 
B) local content requirements 
C) subsidy 
D) foreign trade zones

Question 14

Which of the following is prompting farmers in many developed nations to discover new ways to manage risk and increase agricultural efficiency?

Accepted Answer

A) enforcement of trade embargoes and tariffs 
B) exposure of agribusiness to market forces 
C) provision of extensive government subsidies 
D) designation of agricultural products as dual use products 
A) enforcement of trade embargoes and tariffs 
B) exposure of agribusiness to market forces 
C) provision of extensive government subsidies 
D) designation of agricultural products as dual use products

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

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 17

What is meant by dumping? Describe the various roles of the World Trade Organization,including when a country is accused of dumping.

Accepted Answer

When a company exports a product at a pr

Question 18

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 19

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

Accepted Answer

A) It is difficult for governments to identify the industries worth protecting. 
B) Protection of infant industries helps domestic companies become innovative. 
C) Protection from competition leads to improved quality and lower prices. 
D) Protection leads to more economic good than harm. 
A) It is difficult for governments to identify the industries worth protecting. 
B) Protection of infant industries helps domestic companies become innovative. 
C) Protection from competition leads to improved quality and lower prices. 
D) Protection leads to more economic good than harm.

Question 20

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

The automobile industry is typically protected for national security reasons.

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

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

A designated geographic region in which merchandise is allowed to pass with lower customs duties and/or fewer custom procedures is called a(n)________.

What are voluntary export restraints and how are they used?

Industries considered essential to national security often receive government-sponsored protection.

A restriction on the amount of a good that can enter or leave a country during a certain period of time is called a(n)________.

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

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

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

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 a method of restricting trade?

Which of the following is prompting farmers in many developed nations to discover new ways to manage risk and increase agricultural efficiency?

Which of the following statements is true of export financing?

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

What is meant by dumping? Describe the various roles of the World Trade Organization,including when a country is accused of dumping.

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

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

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

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

The automobile industry is typically protected for national security reasons.

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

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

A designated geographic region in which merchandise is allowed to pass with lower customs duties and/or fewer custom procedures is called a(n)________.

What are voluntary export restraints and how are they used?

Industries considered essential to national security often receive government-sponsored protection.

A restriction on the amount of a good that can enter or leave a country during a certain period of time is called a(n)________.

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

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

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

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 a method of restricting trade?

Which of the following is prompting farmers in many developed nations to discover new ways to manage risk and increase agricultural efficiency?

Which of the following statements is true of export financing?

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

What is meant by dumping? Describe the various roles of the World Trade Organization,including when a country is accused of dumping.

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

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

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

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