Question 1

Countries sometimes fear that foreign producers are pricing their exports artificially low.This fear is most likely based on the assumption that ________.

Accepted Answer

A)  foreign companies will lack the earnings to repay their foreign debt 
B)  insufficient earnings will be available to improve product technology 
C)  foreign producers will charge exorbitant prices after putting competitors out of business 
D)  developing countries will be unable to maintain critical industries needed in times of war 
A)  foreign companies will lack the earnings to repay their foreign debt 
B)  insufficient earnings will be available to improve product technology 
C)  foreign producers will charge exorbitant prices after putting competitors out of business 
D)  developing countries will be unable to maintain critical industries needed in times of war

Question 2

What is dumping? What are the possible effects of dumping on a country's economy?

Accepted Answer

When companies export below cost or belo

Question 3

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas,embargoes,buy local legislation,standards and labels,specific permission requirements,administrative delays,and reciprocal requirements.

Accepted Answer

a.Quotas: The most common type of import

Question 4

Governments sometimes prohibit operations of private companies,foreign or domestic,in some sectors because they feel these services should not be sold at a profit.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are potential problems of using export controls EXCEPT which one?

Accepted Answer

A)  There is an incentive for other countries to develop production of their own. 
B)  Domestic producers may have less incentive to increase output. 
C)  Prices go up in the country imposing the controls. 
D)  There is more incentive for smuggling. 
A)  There is an incentive for other countries to develop production of their own. 
B)  Domestic producers may have less incentive to increase output. 
C)  Prices go up in the country imposing the controls. 
D)  There is more incentive for smuggling.

Question 6

Import trade controls,but not export trade controls,can be used as a weapon of foreign policy.

Accepted Answer

A) True 
 B)False

Question 7

The government of Country X imposes import restrictions on steel to help the domestic steel industry in depressed areas.What is the most likely result of such restrictions?

Accepted Answer

A)  damaging other industries in Country X 
B)  devaluing the currency of Country X 
C)  lowering steel prices in Country X 
D)  triggering boycotts in Country X 
A)  damaging other industries in Country X 
B)  devaluing the currency of Country X 
C)  lowering steel prices in Country X 
D)  triggering boycotts in Country X

Countries sometimes fear that foreign producers are pricing their exports artificially low.This fear is most likely based on the assumption that ________.

What is dumping? What are the possible effects of dumping on a country's economy?

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas,embargoes,buy local legislation,standards and labels,specific permission requirements,administrative delays,and reciprocal requirements.

Governments sometimes prohibit operations of private companies,foreign or domestic,in some sectors because they feel these services should not be sold at a profit.

All of the following are potential problems of using export controls EXCEPT which one?

Import trade controls,but not export trade controls,can be used as a weapon of foreign policy.

The government of Country X imposes import restrictions on steel to help the domestic steel industry in depressed areas.What is the most likely result of such restrictions?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 6: Governmental Influence on Trade

Countries sometimes fear that foreign producers are pricing their exports artificially low.This fear is most likely based on the assumption that ________.

What is dumping? What are the possible effects of dumping on a country's economy?

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas,embargoes,buy local legislation,standards and labels,specific permission requirements,administrative delays,and reciprocal requirements.

Governments sometimes prohibit operations of private companies,foreign or domestic,in some sectors because they feel these services should not be sold at a profit.

All of the following are potential problems of using export controls EXCEPT which one?

Import trade controls,but not export trade controls,can be used as a weapon of foreign policy.

The government of Country X imposes import restrictions on steel to help the domestic steel industry in depressed areas.What is the most likely result of such restrictions?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters