Question 1

One issue at the forefront of the current agenda of the WTO is the increase in tariff rates on nonagricultural goods and services in many nations.

Accepted Answer

A) True 
 B)False

Question 2

The Japanese government was pressurized by the U.S.government to place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981.This is an example of:

Accepted Answer

A)  tariff rate quota. 
B)  specific tariffs. 
C)  voluntary export restraint. 
D)  ad valorem tariff. 
A)  tariff rate quota. 
B)  specific tariffs. 
C)  voluntary export restraint. 
D)  ad valorem tariff.

Question 3

The Netherlands exported tulip bulbs to almost every country in the world except Japan.This was because in Japan,customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle.This is an example of which of the following trade barriers?

Accepted Answer

A)  Export restraint 
B)  Administrative trade policies 
C)  Local content requirement 
D)  Ad valorem 
A)  Export restraint 
B)  Administrative trade policies 
C)  Local content requirement 
D)  Ad valorem

Question 4

A subsidy helps domestic producers to compete against foreign imports.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a consequence of subsidies?

Accepted Answer

A)  Subsidies make domestic producers vulnerable to foreign competition. 
B)  Subsidies lead to lowered production. 
C)  Subsidies protect inefficient domestic producers. 
D)  Subsidies produce revenue for the government. 
A)  Subsidies make domestic producers vulnerable to foreign competition. 
B)  Subsidies lead to lowered production. 
C)  Subsidies protect inefficient domestic producers. 
D)  Subsidies produce revenue for the government.

Question 6

TRIPS regulations oblige WTO members to all of the following EXCEPT:

Accepted Answer

A)  grant and enforce patents lasting at least 20 years. 
B)  grant and enforce copyrights lasting 50 years. 
C)  comply with the rules within five years in the case of rich countries. 
D)  comply with the rules within 10 years in the case of the poorest countries. 
A)  grant and enforce patents lasting at least 20 years. 
B)  grant and enforce copyrights lasting 50 years. 
C)  comply with the rules within five years in the case of rich countries. 
D)  comply with the rules within 10 years in the case of the poorest countries.

Question 7

Krugman has suggested that trade policy designed to retaliate against another country's trade policy would hurt the citizens of both countries.

Accepted Answer

A) True 
 B)False

Question 8

Specific tariffs are:

Accepted Answer

A)  levied as a proportion of the value of the imported good. 
B)  government payment to domestic producers. 
C)  in the form of manufacturing or production requirements of goods. 
D)  levied as a fixed charge for each unit of a good imported. 
A)  levied as a proportion of the value of the imported good. 
B)  government payment to domestic producers. 
C)  in the form of manufacturing or production requirements of goods. 
D)  levied as a fixed charge for each unit of a good imported.

Question 9

What happened to GATT during the 1980s and early 1990s?

Accepted Answer

During the 1980s and early 1990s,the wor

Question 10

Which of the following is a reason for the pressure for greater protectionism that occurred during the 1980s and early 1990s?

Accepted Answer

A)  The U.S. Congress erected an enormous wall of tariff barriers. 
B)  Japanese economic failure strained the world trading system. 
C)  The persistent trade surplus in the United States strained the world trading system. 
D)  Many countries found ways to get around GATT regulations. 
A)  The U.S. Congress erected an enormous wall of tariff barriers. 
B)  Japanese economic failure strained the world trading system. 
C)  The persistent trade surplus in the United States strained the world trading system. 
D)  Many countries found ways to get around GATT regulations.

Question 11

Tariff rate quotas are common in agriculture,where their goal is to:

Accepted Answer

A)  reduce the use of synthetic fertilizers. 
B)  limit imports over quota. 
C)  increase agricultural imports. 
D)  increase foreign competition. 
A)  reduce the use of synthetic fertilizers. 
B)  limit imports over quota. 
C)  increase agricultural imports. 
D)  increase foreign competition.

Question 12

Which of the following acts allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution?

Accepted Answer

A)  D'Amato Act 
B)  Smoot-Hawley Act 
C)  Helms-Burton Act 
D)  Antidumping Act 
A)  D'Amato Act 
B)  Smoot-Hawley Act 
C)  Helms-Burton Act 
D)  Antidumping Act

Question 13

Antidumping policies vary drastically from country to country.

Accepted Answer

A) True 
 B)False

Question 14

According to the _____ policy,subsidies can help a firm achieve a first-mover advantage in an emerging industry.

Accepted Answer

A)  strategic trade 
B)  antidumping 
C)  tariff quota 
D)  free trade 
A)  strategic trade 
B)  antidumping 
C)  tariff quota 
D)  free trade

Question 15

The TRIPS regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.

Accepted Answer

A) True 
 B)False

Question 16

The threat of antidumping action limits the ability of a firm to use aggressive pricing to gain market share in a country.

Accepted Answer

A) True 
 B)False

Question 17

Foreign producers typically agree to voluntary export restrictions because:

Accepted Answer

A)  their manufacturing capacity is limited. 
B)  they can divert their exports to other countries and charge more for their products. 
C)  they fear far more damaging punitive tariffs or import quotas might follow if they do not. 
D)  they are required to by the World Trade Organization. 
A)  their manufacturing capacity is limited. 
B)  they can divert their exports to other countries and charge more for their products. 
C)  they fear far more damaging punitive tariffs or import quotas might follow if they do not. 
D)  they are required to by the World Trade Organization.

Question 18

Inadequate protections for intellectual property reduce the incentive for innovation.

Accepted Answer

A) True 
 B)False

Question 19

According to the strategic trade policy argument:

Accepted Answer

A)  government intervention is not required because firms can borrow money from the capital markets to finance the required investments. 
B)  selling goods in a foreign market at below their "fair" market value is legally and ethically justified. 
C)  government support can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors. 
D)  a government should use subsidies to support promising firms that are active in old, established industries. 
A)  government intervention is not required because firms can borrow money from the capital markets to finance the required investments. 
B)  selling goods in a foreign market at below their "fair" market value is legally and ethically justified. 
C)  government support can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors. 
D)  a government should use subsidies to support promising firms that are active in old, established industries.

Question 20

During the 1980s and early 1990s,the world trading system erected by the GATT gained momentum as protectionist demands generally decreased across the world.

Accepted Answer

A) True 
 B)False

One issue at the forefront of the current agenda of the WTO is the increase in tariff rates on nonagricultural goods and services in many nations.

The Japanese government was pressurized by the U.S.government to place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981.This is an example of:

The Netherlands exported tulip bulbs to almost every country in the world except Japan.This was because in Japan,customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle.This is an example of which of the following trade barriers?

A subsidy helps domestic producers to compete against foreign imports.

Which of the following is a consequence of subsidies?

TRIPS regulations oblige WTO members to all of the following EXCEPT:

Krugman has suggested that trade policy designed to retaliate against another country's trade policy would hurt the citizens of both countries.

Specific tariffs are:

What happened to GATT during the 1980s and early 1990s?

Which of the following is a reason for the pressure for greater protectionism that occurred during the 1980s and early 1990s?

Tariff rate quotas are common in agriculture,where their goal is to:

Which of the following acts allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution?

Antidumping policies vary drastically from country to country.

According to the _____ policy,subsidies can help a firm achieve a first-mover advantage in an emerging industry.

The TRIPS regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.

The threat of antidumping action limits the ability of a firm to use aggressive pricing to gain market share in a country.

Foreign producers typically agree to voluntary export restrictions because:

Inadequate protections for intellectual property reduce the incentive for innovation.

According to the strategic trade policy argument:

During the 1980s and early 1990s,the world trading system erected by the GATT gained momentum as protectionist demands generally decreased across the world.

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

One issue at the forefront of the current agenda of the WTO is the increase in tariff rates on nonagricultural goods and services in many nations.

The Japanese government was pressurized by the U.S.government to place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981.This is an example of:

The Netherlands exported tulip bulbs to almost every country in the world except Japan.This was because in Japan,customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle.This is an example of which of the following trade barriers?

A subsidy helps domestic producers to compete against foreign imports.

Which of the following is a consequence of subsidies?

TRIPS regulations oblige WTO members to all of the following EXCEPT:

Krugman has suggested that trade policy designed to retaliate against another country's trade policy would hurt the citizens of both countries.

Specific tariffs are:

What happened to GATT during the 1980s and early 1990s?

Which of the following is a reason for the pressure for greater protectionism that occurred during the 1980s and early 1990s?

Tariff rate quotas are common in agriculture,where their goal is to:

Which of the following acts allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution?

Antidumping policies vary drastically from country to country.

According to the _____ policy,subsidies can help a firm achieve a first-mover advantage in an emerging industry.

The TRIPS regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.

The threat of antidumping action limits the ability of a firm to use aggressive pricing to gain market share in a country.

Foreign producers typically agree to voluntary export restrictions because:

Inadequate protections for intellectual property reduce the incentive for innovation.

According to the strategic trade policy argument:

During the 1980s and early 1990s,the world trading system erected by the GATT gained momentum as protectionist demands generally decreased across the world.

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