INTB3355 Smartbook 5

Which is an example of nationalization?

During a financial crisis, a government assumes a controlling interest in the auto industry to steer them back toward health.

Which is an example of a government-owned business in the United States?

Export-Import Bank

True or false: Government ownership of a business can result in putting profits ahead of social goals.

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

Although there is strong theoretical support for free trade's benefits, the World Trade Organization (WTO) is having difficulty successfully completing trade negotiations due to politically motivated tariff barriers in which industry?

agriculture

Which of the following industries has the highest tariffs worldwide?

agriculture

Economists agree that political barriers to trade ______. (Check all that apply.)

are detrimental to trade reduce economic efficiencies

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

What two government resources are used to protect citizens when they are abroad?

consulates embassies

Because ______ has a national trade policy, its government intervention in trade reflects a government trade strategy.

Japan

Because ______ has a national trade policy, its government intervention in trade reflects a government trade strategy:

Japan

In 2020, U.S. trade policy included active sanctions against which three countries?

North Korea Sudan Libya

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

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

Antiterrorism training courses for executives often cover ______. (Check all that apply.)

crisis management evasive driving techniques escape tactics

What is the general term for duties paid on imports?

customs

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

What are the three major groupings of nonquantitative nontariff barriers? (Check all that apply.)

direct government participation in trade standards customs and other administrative procedures

Economists argue that the best way to protect national security and provide for national defense is through ______.

direct government subsidies

Supporters of fair competition suggest that an import ______ will bring the cost of imported goods up to the cost of domestically produced goods.

duty

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

One way for businesses to protect themselves is to obtain KRE insurance, which protects against kidnapping, ransom, and ______.

extortion

What option offers firms the shortest period of risk exposure?

financing an export operation

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

Customs is a general term for duties paid on ___.

import

Tariffs are also called ___ duties.

import

Which of the following challenges can unstable governments present to businesses? (Check all that apply.)

inability to ensure peace a pattern of unpredictable change

When governments impose trade restrictions, the cost of the traded goods will ______.

increase

What kind of assistance can be provided by embassies and consular offices? (Check all that apply.)

inform about local political risk file protests for abused citizens monitor nationals imprisoned abroad help citizens contact family for money transfers

Which of the following can businesses use to protect themselves against threats? (Check all that apply.)

insurance employee training programs outsourced skills

Which methods can a government use to minimize unfair international competition? (Check all that apply.)

national laws negotiations between governments institutions such as the WTO

When governments ______ private firms, they take them from private to public ownership.

nationalize

___ is when a government takes a private firm to public ownership

nationalize

Direct government participation in trade, customs and other administrative procedures, and standards are all ______.

nonquantitative nontariff barriers

Advocates for the protection of an infant industry claim that firms need protection from imports until they ______. (Check all that apply.)

obtain the required investment capital train the labor force master production techniques achieve economies of scale

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 Blank______.

piracy

What are the four areas of increasing concern to governments as they try to protect business activities?

piracy terrorism cybercrime kidnapping

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

Which of the following are characteristic of a stable government? (Check all that apply.)

predictable monetary policies predictable fiscal policies maintains itself in power

What are some of the reasons a government would restrict trade? (Check all that apply.)

preserve domestic jobs protect domestic infant industries promote national defense

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

A business would purchase KRE insurance as a way to protect itself from kidnapping, ______, and extortion.

ransom

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

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

Food nutrition labeling requirements are an example of a government ______.

standard

Which of the following nonquantitative nontariff barriers are established to protect the health and safety of a nation's citizens but can also be complex and discriminatory towards exporting firms?

standards

Al Qaeda, the Irish Republican Army (IRA), Hamas, and Hezbollah are groups associated with ___.

terrorism

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

The types of information a firm will need to judge country risks vary according to ______. (Check all that apply)

the nature of its business the length of time needed for the investment to yield a return

It is estimated that worldwide there are more than ______ ransom and kidnapping situations every year.

15,000

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 impedes efforts to sustain international market share. It reduces export revenues for the country's manufactures.

What was the result of the Smoot-Hawley Tariff Act?

It increased tariffs on many items in many industries.

Currently, which area is labeled as one of the highest risk areas for kidnapping?

South America

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. Wages do not account for all the labor costs. Comparing low foreign hourly wages to domestic hourly wages is misleading.

allocated

The government of the importing nation assigns quantities to specific countries.

global

The total amount is fixed without regard to source.

Which of the following are characteristics of nontariff barriers? (Check all that apply.)

They impose additional costs on customers. They are forms of discrimination against imports. They impose additional costs on producers. They can be quantitative and nonquantitative.

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

Productivity per worker is greater in more developed countries because of ______. (Check all that apply.)

advanced technologies more capital per worker superior management

Which of the following are reasons that governments decide to own businesses?

to protect against corruption to ensure equal access to public goods to ensure control over basic services to provide vital services such as national defense

What are three reasons why a government would privatize a business?

to reduce the size of government to raise money to ensure that a business runs more efficiently