Question 1

Write a short note on the World Trade Organization and its influence on the environment.

Accepted Answer

Steady gains in global trade and rapid i...

Question 2

Purposely understaffing customs offices to cause time delays,requiring special licenses that take a long time to obtain,and requiring air carriers to land at inconvenient airports are all examples of ________.

Accepted Answer

A)  local content requirements
B)  import quotas
C)  administrative delays
D)  voluntary export restraints

Question 3

Which of the following statements is true of embargoes?

Accepted Answer

A)  An embargo may be placed on one or a few goods or may completely ban trade in all goods.
B)  An embargo is the least restrictive nontariff barrier available.
C)  An embargo is usually employed for economic reasons.
D)  Embargoes are used frequently today because they are easy to implement.

Question 4

Industries considered essential to national security often receive government-sponsored protection.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true of local content requirements?

Accepted Answer

A)  It is a strategy mainly used by developed nations.
B)  This strategy enforces companies to locate their manufacturing facilities in their home countries.
C)  Local content requirements hurt domestic producers through their effect on prices.
D)  It forces companies from other countries to employ local resources in their production processes.

Question 6

Discuss the benefits and drawbacks of strategic trade policy.How are the drawbacks of subsidies similar to the drawbacks of strategic trade policy?

Accepted Answer

Benefits of Strategic Trade Policy-Suppo...

Question 7

Scenario: Not-So-Free Freeland
Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy.The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition.
-Which of the following motives is least likely attributed to Freeland's restriction on free trade?

Accepted Answer

A)  political motives
B)  economic motives
C)  social motives
D)  cultural motives

Question 8

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Accepted Answer

A) True 
 B)False

Question 9

Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.

Accepted Answer

A) True 
 B)False

Question 10

A(n) ________ tariff is levied as a percentage of the stated price of an imported product.

Accepted Answer

A)  specific
B)  compound
C)  ad valorem
D)  transit

Question 11

Which of the following is a result of the protection of domestic companies from international competition?

Accepted Answer

A)  Consumers need to pay lesser for products.
B)  There are increased incentives to cut production costs and improve quality.
C)  Companies become more reliant on protection.
D)  Protection increases a company's incentives to obtain the knowledge it needs to become more competitive.

Question 12

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true of government interventions in a country's trade practices?

Accepted Answer

A)  A major economic motive behind government intervention in trade is the protection of jobs.
B)  A major political motive behind government intervention in trade is the protection of infant industries.
C)  Government interventions help companies take advantage of economies of scale and be the first movers in their industries.
D)  Governments intervene to protect only imports,as the protection of exports is handled by private agencies.

Question 14

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent.Imports of rice above the quota limit are charged a tariff of 60 percent.This is an example of a(n) ________.

Accepted Answer

A)  export quota
B)  voluntary export restraint
C)  ad valorem tariff
D)  tariff-quota

Question 15

Tariff-quotas are used extensively in the trade of ________.

Accepted Answer

A)  manufactured goods
B)  services
C)  textiles
D)  agricultural products

Question 16

Tariffs are a source of government revenue mostly among developing nations.

Accepted Answer

A) True 
 B)False

Question 17

Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?

Accepted Answer

Financial assistance to domestic produce...

Question 18

A requirement that all WTO members extend the same favorable terms of trade to all members that they extend to any single member is called ________.

Accepted Answer

A)  normal trade relations
B)  antidumping duties
C)  local content requirements
D)  countervailing duties

Question 19

Describe the main political motives behind government intervention in trade.

Accepted Answer

Government officials often make trade-re...

Question 20

An embargo is the most restrictive nontariff trade barrier available.

Accepted Answer

A) True 
 B)False

Exam 6: Business-Government Trade Relations

Purposely understaffing customs offices to cause time delays,requiring special licenses that take a long time to obtain,and requiring air carriers to land at inconvenient airports are all examples of ________.

Correct Answer
verified

Write a short note on the World Trade Organization and its influence on the environment.

Correct Answer
verified
Steady gains in global trade and rapid i...
View Answer

Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.

Correct Answer
verified

A requirement that all WTO members extend the same favorable terms of trade to all members that they extend to any single member is called ________.

Correct Answer
verified

Discuss the benefits and drawbacks of strategic trade policy.How are the drawbacks of subsidies similar to the drawbacks of strategic trade policy?

Correct Answer
verified
Benefits of Strategic Trade Policy-Suppo...
View Answer

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent.Imports of rice above the quota limit are charged a tariff of 60 percent.This is an example of a(n) ________.

Correct Answer
verified

Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?

Correct Answer
verified
Financial assistance to domestic produce...
View Answer

Which of the following statements is true of embargoes?

Correct Answer
verified

Industries considered essential to national security often receive government-sponsored protection.

Correct Answer
verified

Which of the following is true of government interventions in a country's trade practices?

Correct Answer
verified

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Correct Answer
verified

Tariffs are a source of government revenue mostly among developing nations.

Correct Answer
verified

Describe the main political motives behind government intervention in trade.

Correct Answer
verified
Government officials often make trade-re...
View Answer

Which of the following statements is true of local content requirements?

Correct Answer
verified

A(n) ________ tariff is levied as a percentage of the stated price of an imported product.

Correct Answer
verified

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Correct Answer
verified

An embargo is the most restrictive nontariff trade barrier available.

Correct Answer
verified

Correct Answer
verified

Which of the following is a result of the protection of domestic companies from international competition?

Correct Answer
verified

Tariff-quotas are used extensively in the trade of ________.

Correct Answer
verified

Exam 6: Business-Government Trade Relations

Purposely understaffing customs offices to cause time delays,requiring special licenses that take a long time to obtain,and requiring air carriers to land at inconvenient airports are all examples of ________.

Correct AnswerverifiedShow Answer

Write a short note on the World Trade Organization and its influence on the environment.

Correct AnswerverifiedSteady gains in global trade and rapid i...View AnswerShow Answer

Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.

Correct AnswerverifiedShow Answer

A requirement that all WTO members extend the same favorable terms of trade to all members that they extend to any single member is called ________.

Correct AnswerverifiedShow Answer

Discuss the benefits and drawbacks of strategic trade policy.How are the drawbacks of subsidies similar to the drawbacks of strategic trade policy?

Correct AnswerverifiedBenefits of Strategic Trade Policy-Suppo...View AnswerShow Answer

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent.Imports of rice above the quota limit are charged a tariff of 60 percent.This is an example of a(n) ________.

Correct AnswerverifiedShow Answer

Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?

Correct AnswerverifiedFinancial assistance to domestic produce...View AnswerShow Answer

Which of the following statements is true of embargoes?

Correct AnswerverifiedShow Answer

Industries considered essential to national security often receive government-sponsored protection.

Correct AnswerverifiedShow Answer

Which of the following is true of government interventions in a country's trade practices?

Correct AnswerverifiedShow Answer

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Correct AnswerverifiedShow Answer

Tariffs are a source of government revenue mostly among developing nations.

Correct AnswerverifiedShow Answer

Describe the main political motives behind government intervention in trade.

Correct AnswerverifiedGovernment officials often make trade-re...View AnswerShow Answer

Which of the following statements is true of local content requirements?

Correct AnswerverifiedShow Answer

A(n) ________ tariff is levied as a percentage of the stated price of an imported product.

Correct AnswerverifiedShow Answer

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Correct AnswerverifiedShow Answer

An embargo is the most restrictive nontariff trade barrier available.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a result of the protection of domestic companies from international competition?

Correct AnswerverifiedShow Answer

Tariff-quotas are used extensively in the trade of ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Steady gains in global trade and rapid i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Benefits of Strategic Trade Policy-Suppo...
View Answer

Correct Answer
verified

Correct Answer
verified
Financial assistance to domestic produce...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Government officials often make trade-re...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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