Question 1

Foreign trade zones are usually bonded and must be secured and enclosed, which make them safer than most ports of entry - thus decreasing ____________________ costs for companies using them.

Accepted Answer

The answer of Foreign trade zones are usually bonded and...

Question 2

Which of the following is not an argument for protectionism?

Accepted Answer

A) The market has excess productive capacity. 
B) The industry is an "infant" industry. 
C) Natural resources need to be conserved. 
D) Foreign trade zones exist in the market.

Question 3

Free trade zones in China

Accepted Answer

A) attracted $60 billion in investments. 
B) are always export processing zones. 
C) encourage nonautomatic import licensing 
D) all of the above

Question 4

The natural resources conservation argument for protectionism is not considered to be valid in international trade organization forums, especially in light of worldwide shortages of raw materials.

Accepted Answer

A) True 
 B)False

Question 5

A(n) ______________________________ is a tax-free area in a particular country that is not considered part of the respective country in terms of import regulations and restrictions.

Accepted Answer

The answer of A(n) ______________________________ is a tax-free area in...

Question 6

Explain what a foreign trade zone is.

Accepted Answer

The answer of Explain what a foreign trade zone is....

Question 7

Which strategy is most likely to be used by a firm trying to bypass a blocked currency?

Accepted Answer

A) Voluntary import expansion 
B) Voluntary export restraints 
C) Countertrade agreement 
D) Use of a foreign trade zone

Question 8

Because foreign trade zones have easy access, they are less secure causing an increased insurance cost for companies using them.

Accepted Answer

A) True 
 B)False

Question 9

____________________ specify a maximum quantity or a value of a product that may be imported during a specified period.

Accepted Answer

The answer of ____________________ specify a maximum quantity or a...

Question 10

Which bank is the largest international bank that sponsors economic development projects?

Accepted Answer

A) The African Development Bank 
B) The Asian Development Bank 
C) The European Bank for Reconstruction and Development 
D) The World Bank

Question 11

Quotas specify a minimum quantity or a value of a product that must be imported during a specified period.

Accepted Answer

A) True 
 B)False

Question 12

What benefits does an international firm operating in a foreign trade zone receive?

Accepted Answer

The answer of What benefits does an international firm operating...

Question 13

Approximately how may countries are a member of the World Trade Organization?

Accepted Answer

A) 50 
B) 100 
C) 150 
D) 180

Question 14

The current focus of the World Bank is in the area of industrial and infrastructure development.

Accepted Answer

A) True 
 B)False

Question 15

The free trade zones in China attracted $60 billion in investments, employ 2 million people, and contribute a fourth to the nation's exports.

Accepted Answer

A) True 
 B)False

Question 16

A maquiladora is an example of a(n)

Accepted Answer

A) black market. 
B) customs-privileged facility. 
C) development bank. 
D) nonautomatic import license.

Question 17

Voluntary _________________________ are self-imposed quotas and constitute a barrier to trade often used in the 1980's to protect local industries.

Accepted Answer

The answer of Voluntary _________________________ are self-imposed quotas and constitute...

Question 18

Tariffs are imposed to

Accepted Answer

A) discourage imports of particular goods. 
B) penalize countries that are not politically aligned with the importing country. 
C) generate revenues for the importing country. 
D) All of the above are reasons for tariffs.

Question 19

Markets with excess productive capacity:

Accepted Answer

A) frequently use protectionistic measures to keep the factories running. 
B) commonly seek foreign direct investment. 
C) encourage imports of competing products to stimulate demand. 
D) decrease marketing expenditures.

Question 20

The African Growth and Opportunity Act (AGOA) focuses specifically on sub-Saharan Africa and

Accepted Answer

A) offers incentives for African countries to open their economies and build free markets 
B) allows countries in sub-Saharan Africa to use third-country fabrics and export them duty-free to the U.S. 
C) focuses specifically on sub-Saharan Africa 
D) all of the above

Exam 3: International Trade: Institutional Barriers and Facilitators

Foreign trade zones are usually bonded and must be secured and enclosed, which make them safer than most ports of entry - thus decreasing ____________________ costs for companies using them.

Which of the following is not an argument for protectionism?

Free trade zones in China

The natural resources conservation argument for protectionism is not considered to be valid in international trade organization forums, especially in light of worldwide shortages of raw materials.

A(n) ______________________________ is a tax-free area in a particular country that is not considered part of the respective country in terms of import regulations and restrictions.

Explain what a foreign trade zone is.

Which strategy is most likely to be used by a firm trying to bypass a blocked currency?

Because foreign trade zones have easy access, they are less secure causing an increased insurance cost for companies using them.

____________________ specify a maximum quantity or a value of a product that may be imported during a specified period.

Which bank is the largest international bank that sponsors economic development projects?

Quotas specify a minimum quantity or a value of a product that must be imported during a specified period.

What benefits does an international firm operating in a foreign trade zone receive?

Approximately how may countries are a member of the World Trade Organization?

The current focus of the World Bank is in the area of industrial and infrastructure development.

The free trade zones in China attracted $60 billion in investments, employ 2 million people, and contribute a fourth to the nation's exports.

A maquiladora is an example of a(n)

Voluntary _________________________ are self-imposed quotas and constitute a barrier to trade often used in the 1980's to protect local industries.

Tariffs are imposed to

Markets with excess productive capacity:

The African Growth and Opportunity Act (AGOA) focuses specifically on sub-Saharan Africa and