Question 1

The infant industry argument is criticized because it relies on an assumption that:

Accepted Answer

A)  new manufacturing industries in developing nations can initially compete with established industries in developed countries. 
B)  selling goods in a foreign market at below their "fair" market value is legally and ethically justified. 
C)  the domestic industry in a developing nation lacks the capacity to meet demand. 
D)  firms are unable to make efficient long-term investments by borrowing money from the domestic or international capital market. 
A)  new manufacturing industries in developing nations can initially compete with established industries in developed countries. 
B)  selling goods in a foreign market at below their "fair" market value is legally and ethically justified. 
C)  the domestic industry in a developing nation lacks the capacity to meet demand. 
D)  firms are unable to make efficient long-term investments by borrowing money from the domestic or international capital market. D

Question 2

The Smoot-Hawley Act raised tariff barriers in the hope of protecting jobs and diverting consumer demand away from foreign products.

Accepted Answer

A) True 
 B)False  True

Question 3

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. C

Question 4

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 5

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 6

Tariffs do not benefit:

Accepted Answer

A)  consumers. 
B)  domestic producers. 
C)  governments. 
D)  domestic firms. 
A)  consumers. 
B)  domestic producers. 
C)  governments. 
D)  domestic firms.

Question 7

_____ 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

Question 8

What has been the experience of the WTO to date? What does the future look like for the organization?

Accepted Answer

By 2011,the WTO had 153 members with mor

Question 9

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 10

What are the political reasons for governments to intervene in markets?

Accepted Answer

There are a number of political reasons

Question 11

What is strategic trade policy? Provide an example.

Accepted Answer

Strategic trade policy suggests that in

Question 12

Economic problems during the Great Depression were compounded in 1930 when the U.S.Congress passed the _____,aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products.

Accepted Answer

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

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

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 15

Tariffs on industrial goods remain higher than tariffs on services.

Accepted Answer

A) True 
 B)False

Question 16

The WTO argues that removing tariff barriers and subsidies in the agricultural sector could:

Accepted Answer

A)  protect domestic agriculture in developed nations. 
B)  lower the overall level of agricultural trade. 
C)  restrict global economic growth. 
D)  lower prices to consumers. 
A)  protect domestic agriculture in developed nations. 
B)  lower the overall level of agricultural trade. 
C)  restrict global economic growth. 
D)  lower prices to consumers.

Question 17

The Smoot-Hawley Act aimed at:

Accepted Answer

A)  diverting consumer demand toward foreign products. 
B)  promoting unrestricted free trade. 
C)  limiting global warming. 
D)  avoiding rising unemployment. 
A)  diverting consumer demand toward foreign products. 
B)  promoting unrestricted free trade. 
C)  limiting global warming. 
D)  avoiding rising unemployment.

Question 18

Explain how trade barriers affect a firm's strategy.

Accepted Answer

There are four main ways trade barriers

Question 19

Human rights activists see WTO rules as outlawing the ability of nations to stop imports from countries where child labor is used or working conditions are hazardous.

Accepted Answer

A) True 
 B)False

Question 20

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.

The infant industry argument is criticized because it relies on an assumption that:

The Smoot-Hawley Act raised tariff barriers in the hope of protecting jobs and diverting consumer demand away from foreign products.

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

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

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

Tariffs do not benefit:

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

What has been the experience of the WTO to date? What does the future look like for the organization?

The TRIPS regulations established at the 1995 Uruguay Round:

What are the political reasons for governments to intervene in markets?

What is strategic trade policy? Provide an example.

Economic problems during the Great Depression were compounded in 1930 when the U.S.Congress passed the _____,aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products.

Import tariffs:

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

Tariffs on industrial goods remain higher than tariffs on services.

The WTO argues that removing tariff barriers and subsidies in the agricultural sector could:

The Smoot-Hawley Act aimed at:

Explain how trade barriers affect a firm's strategy.

Human rights activists see WTO rules as outlawing the ability of nations to stop imports from countries where child labor is used or working conditions are hazardous.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 7: The Political Economy of International Trade

The infant industry argument is criticized because it relies on an assumption that:

The Smoot-Hawley Act raised tariff barriers in the hope of protecting jobs and diverting consumer demand away from foreign products.

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

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

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

Tariffs do not benefit:

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

What has been the experience of the WTO to date? What does the future look like for the organization?

The TRIPS regulations established at the 1995 Uruguay Round:

What are the political reasons for governments to intervene in markets?

What is strategic trade policy? Provide an example.

Economic problems during the Great Depression were compounded in 1930 when the U.S.Congress passed the _____,aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products.

Import tariffs:

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

Tariffs on industrial goods remain higher than tariffs on services.

The WTO argues that removing tariff barriers and subsidies in the agricultural sector could:

The Smoot-Hawley Act aimed at:

Explain how trade barriers affect a firm's strategy.

Human rights activists see WTO rules as outlawing the ability of nations to stop imports from countries where child labor is used or working conditions are hazardous.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters