Question 1

A quantitative restriction on specific imports for a set period of time is referred to as ________.

Accepted Answer

A)  tariff
B)  quota
C)  investment barrier
D)  country risk B

Question 2

Governments impose export controls for the purpose of ________.

Accepted Answer

A)  improving available opportunities for domestic sales
B)  boosting derived demand in the domestic market
C)  preventing the export of certain products to certain countries
D)  boosting derived demand in foreign markets C

Question 3

Blocking imports ________.

Accepted Answer

A)  increases the availability of raw materials
B)  increases the availability of products sold in the home market
C)  reduces the availability of products sold in the home market
D)  decreases the cost of products sold in the home market C

Question 4

Which of the following is true with regard to protectionism?

Accepted Answer

A)  It increases the availability of raw materials for domestic industries.
B)  It decreases the cost of products sold in the home market.
C)  It increases the availability of products sold in the home market.
D)  It can trigger retaliation from foreign governments, which reduces sales prospects for exports.

Question 5

In a short essay, describe the negative effects to the economy when a government intervenes in international trade.

Accepted Answer

The answer of In a short essay, describe the negative...

Question 6

Which of the following was the first major effort to systematically reduce trade barriers worldwide?

Accepted Answer

A)  WIPO
B)  GATT
C)  NAFTA
D)  WTO

Question 7

Which of the following would be most important for NAC managers to consider while taking a decision in favor of building a facility in Mexico or India?

Accepted Answer

A)  Has NAC engaged in dumping in the past?
B)  How would appliance parts and finished products be categorized when passing through customs?
C)  Is employee empowerment culturally favored in Mexico and India?
D)  What entry strategies are available in both countries which would allow NAC to minimize import barriers?

Question 8

The GATT created a forum for resolving trade disputes.

Accepted Answer

A) True 
 B)False

Question 9

Tariffs that are ad valorem are ________.

Accepted Answer

A)  based on the weight or size of the imported product
B)  assessed as a percentage of the imported product's value
C)  intended to provide a steady flow of income for the government
D)  charged regardless of the imported product's value

Question 10

Explain how quotas work as an instrument of government intervention. What are voluntary export restraints? How can firms use foreign trade zones as a strategy to manage government intervention?

Accepted Answer

The answer of Explain how quotas work as an instrument...

Question 11

The United Nations estimated that trade barriers alone cost developing countries ________ in lost trading opportunities with developed countries every year.

Accepted Answer

A)  $100 billion
B)  $200 billion
C)  less than $100 billion
D)  more than $500 billion

Question 12

Which of the following questions would be most important for government officials to evaluate when considering the controversy over the cotton quota?

Accepted Answer

A)  What would be the short-term effect of additional agricultural quotas?
B)  What other nations utilize agricultural quotas and what are the effects?
C)  Does the government of Zanzi impose heavy duties on dumping?
D)  What will be the long-term effect of the cotton quota on the Zanzi economy?

Question 13

One approach for reducing exposure to trade barriers is to have exported products classified in the appropriate harmonized product code.

Accepted Answer

A) True 
 B)False

Question 14

Singapore and South Korea used export-led development to achieve high growth from the 1970s onward.

Accepted Answer

A) True 
 B)False

Question 15

A countervailing duty slows the import of products or services and hinders the investment activities of firms.

Accepted Answer

A) True 
 B)False

Question 16

A government policy that impedes trade through means other than explicit tariffs is known as a(n)________.

Accepted Answer

A)  investment incentive
B)  subsidy
C)  maquiladora
D)  nontariff trade barrier

Question 17

If high tariffs are present, managers may consider other strategies, such as FDI, licensing, and joint ventures that allow the firm to operate directly in the target market, avoiding import barriers.

Accepted Answer

A) True 
 B)False

Question 18

Firms use foreign trade zones to ________.

Accepted Answer

A)  consolidate market monopolies
B)  assemble foreign dutiable materials and components into finished products, which are then re-exported
C)  create employment opportunities for the local people
D)  meet quota demands established by the government

Question 19

Which of the following is a method used by some manufacturers to avoid paying high tariffs?

Accepted Answer

A)  assemble products in the target market
B)  produce a large number of less expensive items in the target market
C)  employ highly skilled workers in the export location regardless of the cost
D)  ship products to fewer international locations

Question 20

Import tariffs are a principle instrument of trade intervention. In a short essay, briefly describe the five main types of import tariffs.

Accepted Answer

The answer of Import tariffs are a principle instrument of...

Exam 7: Government Intervention and Regional Economic Integration

A quantitative restriction on specific imports for a set period of time is referred to as ________.

Governments impose export controls for the purpose of ________.

Blocking imports ________.

Which of the following is true with regard to protectionism?

In a short essay, describe the negative effects to the economy when a government intervenes in international trade.

Which of the following was the first major effort to systematically reduce trade barriers worldwide?

Which of the following would be most important for NAC managers to consider while taking a decision in favor of building a facility in Mexico or India?

The GATT created a forum for resolving trade disputes.

Tariffs that are ad valorem are ________.

Explain how quotas work as an instrument of government intervention. What are voluntary export restraints? How can firms use foreign trade zones as a strategy to manage government intervention?

The United Nations estimated that trade barriers alone cost developing countries ________ in lost trading opportunities with developed countries every year.

Which of the following questions would be most important for government officials to evaluate when considering the controversy over the cotton quota?

One approach for reducing exposure to trade barriers is to have exported products classified in the appropriate harmonized product code.

Singapore and South Korea used export-led development to achieve high growth from the 1970s onward.

A countervailing duty slows the import of products or services and hinders the investment activities of firms.

A government policy that impedes trade through means other than explicit tariffs is known as a(n) ________.

If high tariffs are present, managers may consider other strategies, such as FDI, licensing, and joint ventures that allow the firm to operate directly in the target market, avoiding import barriers.

Firms use foreign trade zones to ________.

Which of the following is a method used by some manufacturers to avoid paying high tariffs?

Import tariffs are a principle instrument of trade intervention. In a short essay, briefly describe the five main types of import tariffs.