Question 1

_____ is a quota on trade imposed by the exporting country,typically at the request of the importing country's government.

Accepted Answer

A)  Voluntary export restraint 
B)  Specific tariff quota 
C)  Trade reconciliation 
D)  Ad valorem tariff 
A)  Voluntary export restraint 
B)  Specific tariff quota 
C)  Trade reconciliation 
D)  Ad valorem tariff A

Question 2

Explain how trade barriers affect a firm's strategy.

Accepted Answer

There are four main ways trade barriers affect a firm's strategy.First,tariffs raise the cost of exporting,putting the firm at a competitive disadvantage.Second,quotas may limit a firm's ability to serve a country from outside of that country.Third,to conform to local content regulations,a firm may have to locate more production activities in a given market than it would otherwise.Finally,the threat of antidumping actions limits the firm's ability to use aggressive pricing to gain market share in a country.

Question 3

_____ is a direct restriction on the quantity of some good that may be imported into a country.

Accepted Answer

A)  Import tariff 
B)  Import quota 
C)  Import subsidy 
D)  Ad valorem tariff 
A)  Import tariff 
B)  Import quota 
C)  Import subsidy 
D)  Ad valorem tariff B

Question 4

Discuss the Buy America Act and its connection with local content requirements.

Accepted Answer

The Buy America Act specifies that gover

Question 5

Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?

Accepted Answer

Tariff rates on agricultural products ar

Question 6

The "millennium round" ended in 1999 with:

Accepted Answer

A)  a successful record on agricultural products. 
B)  a new agenda for the next round focusing on financial services. 
C)  no agreement on the reduction of barriers to cross-border trade and investment. 
D)  a decision to avoid FDI. 
A)  a successful record on agricultural products. 
B)  a new agenda for the next round focusing on financial services. 
C)  no agreement on the reduction of barriers to cross-border trade and investment. 
D)  a decision to avoid FDI.

Question 7

Strategic trade policy suggests that a government should use subsidies to support promising firms that are active in newly emerging industries.

Accepted Answer

A) True 
 B)False

Question 8

Local content regulations:

Accepted Answer

A)  protect domestic producers by limiting foreign competition. 
B)  lower the prices of imported components. 
C)  tend to benefit consumers and not producers. 
D)  encourage outsourcing of production units. 
A)  protect domestic producers by limiting foreign competition. 
B)  lower the prices of imported components. 
C)  tend to benefit consumers and not producers. 
D)  encourage outsourcing of production units.

Question 9

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries,chemicals,plastics,and machinery and electrical equipment.

Accepted Answer

A) True 
 B)False

Question 10

After the Uruguay Round of GATT extended global trading rules to cover trade in services,the first two industries targeted for reform by the WTO were:

Accepted Answer

A)  textiles and technology. 
B)  telecommunications and financial services. 
C)  automotives and aerospace. 
D)  agriculture and consulting services. 
A)  textiles and technology. 
B)  telecommunications and financial services. 
C)  automotives and aerospace. 
D)  agriculture and consulting services.

Question 11

Protecting industries deemed important for national security,and retaliating against unfair foreign competition are economic arguments for intervention.

Accepted Answer

A) True 
 B)False

Question 12

According to the Buy America Act,if a company wishes to win a contract from a U.S.government agency to provide some equipment,it must ensure that at least 51 percent of the product by value is manufactured in the United States.This is an example of:

Accepted Answer

A)  antidumping duties. 
B)  voluntary export restraints. 
C)  import quotas. 
D)  local content requirements. 
A)  antidumping duties. 
B)  voluntary export restraints. 
C)  import quotas. 
D)  local content requirements.

Question 13

Import tariffs:

Accepted Answer

A)  reduce the price of foreign goods. 
B)  create efficient utilization of resources. 
C)  reduce the overall efficiency of the world economy. 
D)  are unambiguously pro-consumer and anti-producer. 
A)  reduce the price of foreign goods. 
B)  create efficient utilization of resources. 
C)  reduce the overall efficiency of the world economy. 
D)  are unambiguously pro-consumer and anti-producer.

Question 14

The TRIPS regulations established at the 1995 Uruguay Round:

Accepted Answer

A)  established regulations on patents and copyrights. 
B)  set a new level of agriculture subsidies. 
C)  organized OECD countries to eliminate tariffs on textiles. 
D)  established new tariff levels on technology. 
A)  established regulations on patents and copyrights. 
B)  set a new level of agriculture subsidies. 
C)  organized OECD countries to eliminate tariffs on textiles. 
D)  established new tariff levels on technology.

Question 15

GATT has not recognized the infant industry argument as a legitimate reason for protectionism.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast import quotas and voluntary export restraints.

Accepted Answer

An import quota is a direct restriction

Question 17

Explain the notion of predatory behavior with regard to dumping.

Accepted Answer

A firm that is dumping is selling its pr

Question 18

Under a tariff rate quota,a higher tariff rate is applied to imports within the quota than those over the quota.

Accepted Answer

A) True 
 B)False

Question 19

The Great Depression had roots in the failure of the world economy to mount a sustained economic recovery after the end of World War I in 1918.

Accepted Answer

A) True 
 B)False

Question 20

_____ are the highest rate that can be charged,which is often,but not always,the rate that is charged.

Accepted Answer

A)  Ad valorem tariff rates 
B)  Tariff rents 
C)  Specific tariff rates 
D)  Bound tariff rates 
A)  Ad valorem tariff rates 
B)  Tariff rents 
C)  Specific tariff rates 
D)  Bound tariff rates

_____ is a quota on trade imposed by the exporting country,typically at the request of the importing country's government.

Explain how trade barriers affect a firm's strategy.

_____ is a direct restriction on the quantity of some good that may be imported into a country.

Discuss the Buy America Act and its connection with local content requirements.

Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?

The "millennium round" ended in 1999 with:

Strategic trade policy suggests that a government should use subsidies to support promising firms that are active in newly emerging industries.

Local content regulations:

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries,chemicals,plastics,and machinery and electrical equipment.

After the Uruguay Round of GATT extended global trading rules to cover trade in services,the first two industries targeted for reform by the WTO were:

Protecting industries deemed important for national security,and retaliating against unfair foreign competition are economic arguments for intervention.

According to the Buy America Act,if a company wishes to win a contract from a U.S.government agency to provide some equipment,it must ensure that at least 51 percent of the product by value is manufactured in the United States.This is an example of:

Import tariffs:

The TRIPS regulations established at the 1995 Uruguay Round:

GATT has not recognized the infant industry argument as a legitimate reason for protectionism.

Compare and contrast import quotas and voluntary export restraints.

Explain the notion of predatory behavior with regard to dumping.

Under a tariff rate quota,a higher tariff rate is applied to imports within the quota than those over the quota.

The Great Depression had roots in the failure of the world economy to mount a sustained economic recovery after the end of World War I in 1918.

_____ are the highest rate that can be charged,which is often,but not always,the rate that is charged.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

International Trade Theory

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 7: Government Policy and International Trade

_____ is a quota on trade imposed by the exporting country,typically at the request of the importing country's government.

Explain how trade barriers affect a firm's strategy.

_____ is a direct restriction on the quantity of some good that may be imported into a country.

Discuss the Buy America Act and its connection with local content requirements.

Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?

The "millennium round" ended in 1999 with:

Strategic trade policy suggests that a government should use subsidies to support promising firms that are active in newly emerging industries.

Local content regulations:

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries,chemicals,plastics,and machinery and electrical equipment.

After the Uruguay Round of GATT extended global trading rules to cover trade in services,the first two industries targeted for reform by the WTO were:

Protecting industries deemed important for national security,and retaliating against unfair foreign competition are economic arguments for intervention.

According to the Buy America Act,if a company wishes to win a contract from a U.S.government agency to provide some equipment,it must ensure that at least 51 percent of the product by value is manufactured in the United States.This is an example of:

Import tariffs:

The TRIPS regulations established at the 1995 Uruguay Round:

GATT has not recognized the infant industry argument as a legitimate reason for protectionism.

Compare and contrast import quotas and voluntary export restraints.

Explain the notion of predatory behavior with regard to dumping.

Under a tariff rate quota,a higher tariff rate is applied to imports within the quota than those over the quota.

The Great Depression had roots in the failure of the world economy to mount a sustained economic recovery after the end of World War I in 1918.

_____ are the highest rate that can be charged,which is often,but not always,the rate that is charged.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

International Trade Theory

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters