Chapter 5 Bus 280
True or false: A compound duty is a combination of specific and nontariff barriers.
False
True or false: A compound duty is stated as a percentage of the invoice value of the product.
False
True or false: Import duties mean lower prices for the consumer.
False
True or false: In most parts of the world, you will not find government-owned businesses.
False
True or false: Sanctions are effective at achieving their goal of forcing change in the targeted country.
False
What area, particularly related to the Internet, is of increasing concern to governments as they try to protect the business activities of their citizens?
cybercrime
Economists argue that the best way to protect national security and provide for national defense is through _________
direct government subsidies
Economists argue that the best way to protect national security and provide for national defense is through __________
direct government subsidies
Which of the following cybercrimes are most often targeted at businesses?
domain-related offenses hacking data espionage
Julie's company imports all of its athletic shoe products from outside of the United States because it can obtain them for a lower cost based on the lack of environmental standards found in some countries. Those countries are engaged in ____________ dumping
environmental
Voluntary export restraints are export quotas imposed by the
exporting nation
in __________ kidnapping, the victim is kidnapped, often near an airport or international hotel, and forced to withdraw money from cashpoints or an ATM before being released.
express
In 2012, the Argentine energy company YPF was taken over by the Argentine government because the government said YPF was not investing sufficiently in the country. The government takeover of YPF is an example of nationalization or ________
expropriation
Quotas are usually global in nature, with the total amount ____________ regardless of the source.
fixed
As a result of WTO agreements, nontariff barriers have
gained greater importance.
After expropriation occurs, a business is owned by the _________________
government
International firms can be protected from terrorism and cybercrime through __________ (business/government) actions.
government
Tariffs are also called _________ duties.
import
Customs is a general term for duties paid on
imports
When governments impose trade restrictions, the cost of the traded goods will ____________
increase
During Margaret Thatcher's tenure as prime minister of Britain, she decreased the number of state-owned companies and sold more than 30 companies, thereby raising $65 billion for the country. This is an example of _____________
privatization
The selling of government-owned businesses to the private sector is known as ____________
privatization
What are some of the reasons a government would restrict trade?
promote national defense preserve domestic jobs protect domestic infant industries
Which quantitative nontariff barrier sets numerical limits for specific kinds of goods that a country will permit to be imported during a specified period?
quota
Which one of the following would be recognized in a country risk assessment?
revolution against the government
A country ____________ assessment reviews a country's economic situation and politics to determine how much risk to employees, property, and investment exists for firms doing business there.
risk
Dumping is defined in several ways. Which of the following are definitions of dumping? (Check all that apply.)
selling a product abroad for less than the cost of production selling a product abroad for less than the price in the home market selling a product abroad for less than the price to third-party countries
Unlawful acts of violence committed to achieve a variety of objectives are collectively known as
terrorism
Which country was the first to prohibit the dumping of foreign goods into its own market in 1916?
the United States
Which of the following are characteristic of a stable government?
maintains itself in power predictable fiscal policies predictable monetary policies
When governments ________ private firms, they take them from private to public ownership.
nationalize
In 2020, U.S. trade policy included active sanctions against which three countries?
North Korea Sudan Libya
Which is an example of a government-owned business in the United States?
Export-Import Bank
Supporters of fair competition suggest that an import__________ will bring the cost of imported goods up to the cost of domestically produced goods.
Duty
What are the potential drawbacks to placing a ban on the export of advanced technologies? (Check all that apply.)
It impedes the funding of continued innovation. It reduces export revenues for the country's manufactures. It impedes efforts to sustain international market share.
What was the result of the Smoot-Hawley Tariff Act?
It increased tariffs on many items in many industries.
Because ______ has a national trade policy, its government intervention in trade reflects a government trade strategy.
Japan
A variable ______________ guarantees that the market price of the import will be the same as that of domestically produced goods.
Levy
_______________ is when a government takes a private firm to public ownership.
Nationalize
absolute
Once the specified amount has been imported, further importation for the rest of the period is prohibited.
___________ is hijacking that includes kidnapping on the seas.
Piracy
______ dumping occurs when producers have lower wage rates, lower social costs, poor worker benefits, and poor working conditions.
Social
Which of the following statements are accurate regarding the cost-of-labor argument? (Check all that apply.)
The cost-of-labor argument does not take into account relative productivity rates of workers in different countries. Comparing low foreign hourly wages to domestic hourly wages is misleading. Wages do not account for all the labor costs.
allocated
The government of the importing nation assigns quantities to specific countries.
global
The total amount is fixed without regard to source.
Why do so many kidnappers target businesspeople?
They assume businesses have a lot of money and want to protect their workers.
Which of the following are characteristics of nontariff barriers? (Check all that apply.)
They can be quantitative and nonquantitative. They are forms of discrimination against imports. They impose additional costs on producers. They impose additional costs on customers.
True or false: A national system of law can minimize unfair international competition.
True
The area of dumping, its regulation, prosecution, and prevention is under which organization?
WTO
Which of the following challenges can unstable governments present to businesses?
a pattern of unpredictable change inability to ensure peace
A pharmaceutical firm pays import duties that are stated as a percentage of the invoice value of the product. This is an example of what type of tariff?
ad valorem
Economists agree that political barriers to trade ________
are detrimental to trade reduce economic efficiencies
Subsidies can take the form of
cash payments to the firm government participation in ownership preferential tax treatment
Those who believe it is important to protect infant industries claim that, in the long run, these industries will have a(n) ______ advantage, but in the meantime these firms need protection from imports.
comparative
A(n) __________ duty is a combination of specific and ad valorem duties.
compound
What are the three types of tariffs?
compound ad valorem specific
What is the general term for duties paid on imports?
customs
Any illegal Internet-mediated activity that takes place in electronic networks is called__________
cybercrime
Which methods can a government use to minimize unfair international competition?
negotiations between governments national laws institutions such as the WTO
Direct government participation in trade, customs and other administrative procedures, and standards are all
nonquantitative nontariff barriers
Tariffs assessed at very low rates are called
nuisance tariffs
A(n) ______ is a formal agreement between the governments of exporting and importing countries that stipulate the import or export quotas each nation will have for a good in order to restrict international competition and preserve some of the national market for local producers.
orderly marketing arrangement
U.S. cargo ships have been hijacked by groups from West Africa who demand money for the release of the ship. This form of hijacking is called ____________
piracy
What are the four areas of increasing concern to governments as they try to protect business activities?
piracy kidnapping terrorism cybercrime
When a manufacturer lowers its export price to force the importing nation's domestic producers out of business, expecting to raise the price once it has accomplished that objective, the manufacturer is engaged in
predatory dumping
A(n) _________ duty is a fixed sum of money charged for a specified physical unit of the product.
specific
Regardless of the value of the invoice, Kendall's company charges $0.14 per pound of butter exported. This tax is an example of a(n)__________duty
specific
A government that has achieved ________________ has the ability to maintain itself in power and hold to predictable fiscal and political policies.
stability
Businesses like peace and predictability because they provide ____________
stability
What are the three major groupings of nonquantitative nontariff barriers? (Check all that apply.)
standards direct government participation in trade customs and other administrative procedures
In the past, the U.S. government provided payments to farmers as a way to manage surplus food resulting from increased production needed to fuel WWII and to feed Europe. The government offset and controlled the overproduction of these crops so as to prevent them from flooding the market. These payments to farmers were an example of _______
subsidies
Productivity per worker is greater in more developed countries because of_____
superior management advanced technologies more capital per worker
Al Qaeda, the Irish Republican Army (IRA), Hamas, and Hezbollah are groups associated with
terrorism
Advocates for the protection of an infant industry claim that firms need protection from imports until they _________
train the labor force master production techniques obtain the required investment capital achieve economies of scale
A(n) ________ guarantees that the market price of the import will be the same as that of domestically produced goods.
variable levy
The rates for nuisance tariffs are
very low
An orderly marketing arrangement is a type of
voluntary export restraint
Which of the following is issued by the exporting country rather than imposed by the importing one?
voluntary export restraints