MGMT 211 Exam 4

What are the civil penalties for a violation of the Oil Pollution Act (OPA)?

$1,000 per barrel of spilled oil or $25,000 per day of the violation

T or F: The Superfund is a tort law that imposes strict liability and joint and several liabilities.

True

Stationary sources of air pollution are generally required to install pollution control devices to control air pollution as either: (1) _______ or (2) _________

(1) Reasonably Available Control Technology (RACT)- normally required of existing stationary air pollution sources (2) Best Available Control Technology (BACT)- normally required by the Clean Air Act of new stationary sources of air pollution

India

-2nd most populous country in the world -gained independence from the British in 1947 -favored import substitution policies -In 1991, began to reduce trade and investment barriers

Immigration Reform and Control Act (Simpson-Mazzoli) of 1986

-Applies to all citizens and noncitizens -Must provide proof of •Identity •Authorization to work -Provides criminal penalties to any employer that fails to verify proof -Also provided amnesty to 3 million illegal aliens

Cassis de Dijon case

-EU court case involving liqueur which established the concept of mutual recognition

Common OSHA violations

-Hard hats not being worn at construction site -Electrical problems -Failure to inform employees of safety requirements -Not using safety harnesses when required -Improper protections from fires

Non-quantitative non-tariff barriers can take a variety of forms, including:

-Product and Testing Standards -Local-Purchase Requirements -Regulatory Controls -Public Sector Procurement Policies -Restricted Access to local distribution networks

What are the elements to the creation of an LLP?

-Register with appropriate state official -Annual fee paid by each partner -File annual report on status of the LLP -Partnership must have insurance or separate funds to pay debts -Partners have limited liability -All partners take part in management

Registration State Requirements for the registration of a security with the SEC:

-Terms of the security -independently audited financial statements of the issuer -short biographies of issuer's top management team -discussions of the financial interests of the issuer -any conflicts of interest -potential risks to the investors -status of any potential lawsuits

consent decree

-a contract between the accused and the FTC -detail the terms of a settlement, and may include an agreement to discontinue the advertisement at least in its present state, redress for injured consumers, payment of penalties, and/or prohibitions of certain practices

Marshall Plan

-aided the efforts of the World Bank -a U.S. sponsored aid program to restore the economies of U.S.-allied, non-Communist governments of Western Europe

Single European Act of 1992

-amended the Treaty of Rome -called for the completion of the common market by the end of 1992

free traders

-believe that the government's role in trade should be minimal (it decreases benefits of specialization)

fair traders

-believe that the national government should actively intervene in the international marketplace to ensure that the nation's businesses receive their "fair share" of domestic and foreign markets -believe that the government should promote the sale of domestically made goods in foreign markets through direct subsidies, tax incentives, cut-rate financing programs, government-to-government negotiations, and the like

When can an employer do a drug test on employees?

-when the employee is involved in an accident at work -when the employer announces the drug test far enough in advance for the employee to get the illegal drugs out of their system

Boomer v. Atlantic Cement Company

-cement company sued by neighbors for pollution -the rule of law was that plaintiffs were entitled to an injunction regardless of the cost of eliminating the nuisance -court in Boomer stated that the cost of eliminating the nuisance was too high, made a new rule -court said it could no longer ignore the economic costs of injunctions and refused to issue one

National Environmental Policy Act (NEPA)

-changes the role of the government from conservation to "create and maintain conditions under which man and nature can exist in productive harmony" and to "assure for all Americans safe, healthful, productive, aesthetically and culturally pleasing surroundings -and required all federal agencies to submit Environmental Impact Statements (EISs) -instructed President Nixon to create a Council on Environmental Quality

tort of disparagement in advertising

-common law -When the products of the advertiser's competitors are falsely advertised -similar to the tort of defamation, except that the injury is to one's products or business rather than to one's reputation

Oil Pollution Act (OPA)

-contains strict requirements for constructing oil tankers requiring all ocean-going oil tankers to be double hulled by 2015 -requires that each tanker owner and operator establish an oil cleanup contingency plan -administered by the U.S. Coast Guard -set up a $1-billion oil clean-up and economic compensation fund

China

-controlled by Communist party -Half of GDP is produced by for-profit firms -virtually every significant multinational corporation in the world has staked a claim in China -Foreign direct investment (FDI) is enormous -manufacturing sector has boomed -joined WTO in 2001 -labor costs have risen over the past 10 years

Local purchase requirements (NQNTB)

-countries impose requirements mandating that a product sold in the country must contain some minimum percentage of local content -think of EU airtime/TV requirements

rules of origin by NAFTA

-created to fight against screwdriver plants -determines whether a good is North-American-made -products must undergo "substantial transformation" in order to qualify as North American

Rehabilitation Act gave us:

-curb cuts -Hire-the-Handicapped programs -Affirmative Action -Handicapped Parking

Federal Trade Commission (FTC) responsibilities

-enforces the Clayton Antitrust Act & FTC Act which prohibits "unfair methods of competition" -Wheeler-Lea amendment broadened FTC's control to protect consumers from "unfair or deceptive practices" -Magnuson-Moss amendment gave FTC power to act against all fraudulent practices and granted FTC power to regulate industry-wide behavior by formulating trade regulation rules

Whistleblower Protection Act

-federal law that applies to government employees only -occurs when a public employee reports an employer for an illegal act -Test: Was the reporting for the public good? (i.e., to help the police, expose illegal activity, etc. CANNOT be so that you can get their job)

Doha Round

-initiated by WTO members in 2001 -focuses on reducing agricultural subsidies and tariffs, liberalizing trade in services, and improving the access of LDCs to pharmaceutical products

Elements to the tort of deceit in advertising:

-misrepresentation of a material fact -knowledge by the seller that the information is false -the sellers' intent that the consumer rely on the misrepresentation -consumer's justified reliance on the misrepresentation -damage to the consumer

European Union

-most important regional trading bloc in the world -28 members, more than 500 million people -all are democracies with free-market-oriented economic policies -accounts for 25% of world's GDP

Family and Medical Leave Act (FMLA)

-only for UNPAID leave -public employees -private employees with more than 50 employees for 20 or more weeks a year -Reasons to use FMLA: serious health condition, childbirth, adoption, foster care, only applies to seriously ill spouse, child, parent, or employee themselves

Examples of command-and-control regulations

-place emission limits on the amount of certain wastes that may be disposed into the environment by each producer -to tax certain emissions and allow firms to decide whether to cut emissions by investing in emission control technology or to continue to pollute and pay the tax

When can OSHA come and inspect?

-random -when a worker reports a violation -employer self-reports post-accident

Resource Conservation and Recovery Act (RCRA)

-regulates the disposal of new hazardous wastes

Endangered Species Act

-requires the immediate designation of critical habitats for each endangered and threatened species -real estate development by the government is prohibited in these areas -prohibits the harassment, harming pursuit, hunting, shooting, wounding, killing, trapping, capturing, or collecting of any endangered or threatened species

Brazil

-rich endowment of natural resources: fertile farmland, ample water supplies, and mineral resources such as iron ore, bauxite, and manganese -accounts for half of South America's GDP

Russia

-struggled for the first decade of its existence -major oil exporter -still plagued by a legal system that foreign investors put little faith in (high corruption)

World Trade Organization (WTO)

-successor to GATT -created in 1995 -continuing in GATT's footsteps, it sponsors multilateral negotiations to reduce trade barriers

International Monetary Fund (IMF) goals

-to discourage nations from pursuing competitive exchange rate devaluations -oversaw the functioning of the new international monetary system, which created a dollar-based fixed exchange rate system

What was the mission of the International Bank for Reconstruction and Development (IBRD)?

-to lend money to rebuild the infrastructure of war-torn Europe -the money poured into the reconstruction of Western European railroads, highways, public buildings, etc. created employment and revitalized competitiveness and productivity

New point sources of water pollution are required to install: 1.) Best Practical Control Technology (BPCT) or 2.) Best Available Control Technology (BACT)

BACT

North American Free Trade Agreement (NAFTA)

-world's second largest trading bloc -a free trade agreement among the three largest countries in North America--Canada, Mexico, and the United States

Asia is home to what 2 important trading blocs?

1.) Association of Southeast Asian Nations (ASEAN) 2.) Asia-Pacific Economic Cooperation (APEC)

Proving Discrimination- Disparate Impact (3-prong test)

1.) Employee must prove a prima facie case but does not have to prove intent; only identify a discriminatory practice that has an adverse impact on the workplace 2.) Employer must justify the practice 3.) Employee must show that there is a less-restrictive way than the discriminatory practice

Proving Discrimination- Disparate Treatment (3-prong test)

1.) Employee must prove prima facie case of discrimination 2.) employer must give a non-discriminatory reason 3.) employee must show that the employer LIED in second step and really intended to discriminate against employee

Treaty of Maastricht (Treaty on European Union) had 3 major provisions:

1.) Establishment of common defense and foreign policies 2.) Creation of the cohesion fund 3.) Creation of the Economic and Monetary Union (EMU)

The EU is governed by four primary institutions:

1.) European Council of Ministers (ultimate decision making) 2.) Commission of the European Union (propose legislation) 3.) European Parliament 4.) European Court of Justice

Types of Regional Trading Blocs (4 levels)

1.) Free Trade Area 2.) Custom Union 3.) Common Market 4.) Economic Union

What are the 4 types of trading blocs?

1.) Free trade areas 2.) Customs unions 3.) Common market 4.) Economic Union

What two new international organizations to promote international economic cooperation were created at Bretton Woods?

1.) International Bank for Reconstruction and Development (IBRD; also known as the World Bank) 2.) International Monetary Fund (IMF)

What are the elements of the 3-prong Howey test used to define a security?

1.) Investment of Money 2.) Common Enterprise 3.) With the expectation of profits to be generated primarily by someone other than the investor

Regulation of nuclear energy in the U.S. is handled by which two federal agencies?

1.) Nuclear Regulatory Commission (NRC) 2.) EPA

What are the 4 current WTO initiatives underway?

1.) The General Agreement on Trade in Services (GATS) 2.) Agreement on Trade Related Investment Measures (TRIMs) 3.) Trade-Related Aspects of Intellectual Property Rights (TRIPS) 4.) Agriculture

Under the 34 Act, an insider must notify the SEC on a timely basis for:

1.) any purchase or sale of stock 2.) source of funds used for the purchase 3.) reason for the purchase

What are the 2 reasons for imposing tariffs?

1.) as a source of revenue (mostly in less developed nations) 2.) as a barrier to imported goods

The FTC's implementation of its consumer protection mandate to prevent unfair or deceptive acts or practices is illustrated by its activities in 3 related areas:

1.) deceptive price advertising 2.) deceptive quality advertising 3.) unfair advertising

What two measures did European countries take after WWI when unemployment rose?

1.) devalue their currencies 2.) raise tariffs on imported goods

What were the two exceptions to following MFN policy in GATT?

1.) members of regional trading blocs such as European Union and NAFTA could grant trade preferences to their members without having to grant such preferences to all other GATT members 2.) GATT members could grant preferential treatment to less developed countries to aid in their development efforts

What are the major motivating factors in joining international commerce?

1.) the desire of firms to expand the size of their customer bases 2.) Acquisition of resources 3.) The need to keep up with rival firms 4.) Technological advances 5.) Changes in government trade policies

The FTC has developed the following test for determining when it will prosecute alleged unfair practices:

3 tests to be unfair: 1.) must be substantial 2.) must not be outweighed by any countervailing benefits to consumers or competition that the practice produces 3.) must be an injury that consumers themselves could not reasonably have avoided

Proxy solicitation is regulated by which Act?

34 Act

What is the appeal process for a trail before an ALJ in advertisement law?

ALJ ----> appealed to five FTC commissioners ----> U.S. Court of Appeals

Drug-Free Workplace Act

Any company doing $25,000 worth of business with the Federal government must distribute a written statement that use, distribution, or possession of drugs in the workplace is forbidden; warn of the punishment if violated; establish a drug free awareness program and enforce it; employee must notify the employer of any drug convictions

Who is liable under CERCLA?

Any potentially responsible party (PRP) that can include the generator who deposited the waste, the owner of the land, the transporter of the waste, etc.

Mercosur Accord

Argentina, Brazil, Paraguay, and Uruguay agreed to establish a customs union and pledged to slash their tariffs on trade between themselves over a four-year period; instituted a common external tariff on most goods imported into the Accord's domain

beggar-thy-neighbor policies

focusing on the needs of the domestic economy but ignoring the impact on other countries

All previously existing point sources of water pollution were required to immediately install which of the following: 1.) Best Practical Control Technology (BPCT) or 2.) Best Available Control Technology (BACT)

BPCT

Operators of public water supply systems must use ______ __________ _____ _____ (B_CT) that is economically and technologically feasible.

Best available control technology

What countries make up the BRIC countries, which have attracted increasing attention because of their growth in the global economy?

Brazil, Russia, India, China

What act created the Superfund?

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

FTC's Bureau of _________ ________ is charged with regulating unfair and deceptive advertising.

Consumer Protection

Some statutes, particularly those providing criminal sanctions, require the EPA to forward cases to the _____________________________, which many bring suit against alleged violators.

Department of Justice

air quality control regions (AQCRs)

EPA subdivides states into AQCRs and monitors each region to ensure compliance with EPA standards

The newly created ________ ________ _____ is now in charge of controlling the Eurozone's money supply, interest rates, and inflation.

European Central Bank

The Treaty of Rome created the _________ ______ ___________ (EEC).

European Economic Community

How does the government decide whether to classify an investment as FDI or FPI?

FDI: investor owns 10% or more of the voting stock of an organization FPI: investor owns less than 10% of voting stock

T or F: The GATT was successful at reducing quotas and other non-tariff barriers.

False

T or F: When filing a lawsuit for the tort "trespass to land", actual injury to the land must be proved.

False

T or F: The EPA sets national ambient air quality standards, and it is also the EPA's responsibility to enforce these standards.

False; the state governments have the responsibility of enforcing them

What is the name of the test used to prove disparate impact?

Griggs Test

Four Tigers (Newly Industrialized Countries (NICs))

Hong Kong, Taiwan (part of China), Singapore, and South Korea. They are notable for having made the transition from being low-income countries to high-income countries since the end of WWII.

Protection from false statements concerning the advertiser's own products is found in a federal statute, the ______ _________ ___, passed by Congress in 1946.

Lanham Trademark Act

Which region of the world used to rely heavily on import-substitution growth strategy, only to learn that it was ineffective?

Latin America

Investment controls (NQNTB)

Many countries bar or limit FDI in order to avoid foreign domination of their economies or of key industries (ex: the United States limits foreign ownership of its airlines to 25 percent)

What state(s) have off-duty conduct statutes?

Montana, Colorado, New York, North Dakota

The EPA relies upon citizen groups such as the _______ ________ ________ _______ (NRDC) to pressure polluters to reduce their emissions.

National Resources Defense Council

____________ injunctions are more common in cases of _______ nuisance, which is an action that interferes with the health, safety, and property rights of a community.

Permanent; public

What are the 2 different levels of NAAQS?

Primary level: designed to protect human beings Secondary level: designed to protect vegetation, climate, visibility, property, statutes, and economic values

What was the first environmental law in the U.S. to create a permit system?

River and Harbors Act

What section of the FTC Act is violated when sellers distort relative price comparisons?

Section 5 of the FTC Act

Which president has been called the Conservation President?

Teddy Roosevelt

The Texas equivalent to the EPA is the _______ _______________ __ ______________ _________.

Texas Commission on Environmental Quality (TCEQ)

Who created the Nuclear Regulatory Commission (NRC) and what is its purpose?

The NRC was created by the Energy Reorganization Act and licenses the construction and opening of commercial nuclear power plants and continually monitors the operation of those nuclear power plants.

What was the goal of the Bretton Woods agreement?

To construct a post-war international economic environment that would promote peace and mutual prosperity

The federal government provides information to the public through the _____ ________ _______ (TRI).

Toxic Release Inventory

Forms of International Commerce

Trade (exporting and importing) Foreign investment Franchising Licensing Contract Manufacturing

T or F: If your goal is to maximize the efficiency of the world economy, multilateral negotiations are far more beneficial than bilateral ones.

True

T or F: Stationary sources which emit toxic chemicals are required by the EPA to utilize maximum achievable control technology (MACT) to control their emission.

True

T or F: The FTC's investigation is often informal at first, and frequently is quickly terminated if the target of the investigation agrees to stop engaging in the allegedly unfair or deceptive practice.

True

T or F: The primary mobile source of pollution is automobiles.

True

import-substitution growth strategy

Try to stimulate the development of domestic manufacturing by raising barriers to imported goods; by keeping out imports, they then hope that their local manufacturing industries will have the opportunity to develop and grow

public choice analysis

Why do countries adopt trade barriers that damage their domestic economies? Public choice analysis suggest that such outcomes rationally occur because special interest groups are more willing to work for the passage of laws that favor them than is the general public willing to work for the defeat of such laws

What is the result of a violation of the Ocean Dumping Act?

a civil penalty of not more than $50,000 or revocation or suspension of the permit (if the polluter knowingly violates this law, the penalty is a $50,000 fine, imprisonment for up to one year or both, and an injunction may occur)

Management contracts (in international business)

a firm in one country will contract to provide management services or operate facilities in a second country in return for a fee (ex: Marriott managers operating in a foreign country)

Contract manufacturing (in international business):

a firm in one country will contract with a firm in another country to produce goods for it (ex: Nike relies on China to produce athletic shoes at low labor costs)

multi-national corporation (MNC)

a firm with extensive international business involvement, typically owning or managing value-adding activities in several countries

What is the FTC's definition of "deceptive"?

a representation, omission, or practice that is likely to mislead a reasonable consumer and result in material harm to the consumer

tariff-rate quota

a specified amount of the good is allowed into the country at a zero or low tariff, but any amount above this threshold is subjected to an extremely high tariff that often blocks out any additional imports of the good

Rulings by the administrative law judge of the EPA can be appealed to the ________ and then to the ________ court system.

administrator; federal

national ambient air quality standards (NAAQS)

air-quality standards for stationary sources of air pollution; these standards are set on two different levels

corrective advertising

an FTC remedy that requires the affirmative disclosure by the defendant that past advertising claims were misleading

bait and switch

an advertisement of a product at a very low price in an attempt to lure customers into the store; then the advertiser refuses to sell the advertised product and attempts to get the customer to purchase a higher-priced substitute product (deceptive price advertising)

The Clean Water act protects wetlands. What is the definition of a wetland?

an area inundated or saturated by surface water or ground water that supports vegetation typically adapted for life in saturated soil conditions

cease and desist order

an order from the ALJ stating that the advertisement has indeed been found to be deceptive

definition of "advertising"

any communication that businesses offer customers in an effort to increase demand for their products

Safe Drinking Water Act of 1974

authorizes the EPA to establish national drinking water standards for human consumption and forbids the dumping of wastes into wells used for drinking purposes

Under the Uniform Commerical Code, statutory law provides for a remedy for ______ __ ________ _______, but the courts require that the consumer reasonably rely on the advertising claims.

breach of express warranty

Economic and Monetary Fund (EMU)

calls for the creation of a single currency, the euro

Is employment-at-will common law or statutory?

common law

Multilateral negotiations encourage trade to take place on the basis of ___________ __________.

comparative advantage

Most of the remedies for consumers injured by false advertising are based upon ________ law and _____ law.

contract; tort

What is the purpose of Superfund and who funds it?

creates a fund to finance the cleanup of disposal sites where hazardous wastes were leaking into the environment; funded through taxes on products that have the potential to create a hazardous waste site

What was the most important part of the Treaty of Maastricht?

creation of the Euro currency

The Simpson-Mazzoli Act (Immigration and Reform Act) provides _________ penalties to any employer that fails to verify proof of identity and authorization to work.

criminal

The common law tort of ______ is available to consumers when an advertiser misrepresents the quality of goods and services.

deceit

Scenario: A merchant offers a product for sale at "two for one" but the pre-sale price of one unit was less than half of the sale price. What is violated?

deceptive price advertising; Section 5 of the FTC Act

export-promotion growth strategy

develops its economy by relying on exports as its source of growth

most favored nation principle (MFN)

each GATT member agrees to treat every GATT member at least as well as it treats any other GATT member

Treaty of Maastricht

established a new goal of intensifying the EC's economic integration by establishing an economic union

What strategy did the Four Tigers use to rise in rank?

export-promotion growth strategy

When the FTC believes that an ad campaign is especially harmful to the public, the FTC will file a lawsuit in ________ ________ _______ seeking an injunction to stop the advertisement.

federal district court

High-level waste (HLW) is disposed of by the _________ __________ while low-level radioactive waste (LLW) is disposed of by the ___________.

federal government; states

Clean Air Act (1963)

focused on air pollution between states and gave the states federal assistance in fighting air pollution

If Toyota (a Japanese company) built a truck assembly plant in San Antonio, Texas, this is an example of what kind of investment?

foreign direct investment (FDI)

International investments can take two forms: ______ _________ __________ (FPI) and _______ ________ ____________ (FDI).

foreign portfolio investments; foreign direct investments

Federal Insecticide, Fungicide and Rodenticide Act (FIFRA)

gave the federal government regulatory power over pesticides and related chemicals

fixed exchange rate system

government promises that it will hold the value of its currency fixed relative to some major currency

If a danger of a pesticide is not imminent or an emergency, what must the EPA do prior to the cancellation of the pesticide registration?

hold a hearing

mutual recognition

if one member state recognizes a product as appropriate for sale, then all other EU members are mutually bound to do the same

When does the FTC use the trade regulation rules approach?

in industries where history suggests the probability of unfair or deceptive trade acts by a business is high or where consumers are particularly vulnerable if such practices occur. (car dealerships, funeral homes, telemarketers, etc.)

absolute quota

limits the amount of a good allowed into the country to some specific quantity

The Clean Air Act requires the EPA to establish standards for the emission of toxic air pollutants and requires stationary sources emitting these chemicals to utilize _______________ to control their emission.

maximum achievable control technology (MACT)

economic union

members create a common market, and then deepen their economic integration by implementing similar macroeconomic and microeconomic policies

common markets

members create a customs union, then also drop all barriers that hinder free movement of labor, capital, and other factors of production among them

custom unions

members create a free trade area, and then adopt common trade policies toward non-members

free trade areas

members of free trade areas agree to reduce or eliminate barriers to trade among themselves; goods and services created in member states receive preferential treatment over goods and services produced by non-members

Regions that do not meet the EPA standards are designated ________________________ and the state must develop a plan to bring that area into compliance within a set time period.

non-attainment areas

quota

numeral limit on the amount of a good that can be imported into the country

international investment

occurs when a resident of one country supplies capital to a resident of a second country

Franchising (in international business)

one firm grants a firm in a foreign country the right to utilize its operating systems, brand names, and trademarks in return for a royalty payment (ex: McDonald's operating in China)

Licensing (in international business)

one firm permits a firm in a foreign country to use all or some of its intellectual property in return for a royalty payment (ex: NBA licensing a Dutch sportswear company to use its logo, in return for a percentage of sales)

screwdriver plants

one in which minimal value is added to the product (ex: Koreans making basically the whole car except for one screw, then sending it to Mexico to be finished and have the final screw screwed in and calling it Mexican made)

After the World Bank completed its first mission, what new objective did it strive for?

promoting economic growth and prosperity in less developed countries through the provision of low-interest rate, long-term loans

Marine Protection, Research, and Sanctuaries Act of 1972 (Ocean Dumping Act)

protects the oceans from water pollution; established marine sanctuaries at sea and requires a permit to dump wastes into the ocean

General Agreement on Tariffs and Trade (GATT) 1947

provided a cooperative environment in which nations could negotiate the reduction of trade barriers among themselves

Scenario: Brazil giving a 12% bidding preference on public contracts such as computers so Brazilian computer company wins the bid as long as it is no more than 12% above the lowest foreign company's bid. What kind of NQNTB is this an example of?

public procurement

Generalized System of Preferences

reduces the tariffs imposed on imports from certain LDCs (less developed countries)

affirmative disclosure order

requires an advertiser to disclose all relevant information about a product, both positive and negative

National Pollutant Discharge Elimination System (NPDES)

requires anyone who plans to discharge pollutants into the waterways to obtain a permit from the EPA

Toxic Substances Control Act

requires manufacturers and processors to test new chemicals to determine their effect on human health and the environment

Noise Control Act of 1972

requires the EPA to establish noise emission standards that are maximum noise levels below which no harmful effects occur from the interference with speech or other activities

law of one price

says that the price of a good in the long run must be equal in all markets except for the cost of getting the good from one market to another

state implementation plan (SIP)

sets out a state's plan to implement the EPA standards

trade diversion

shifting trade from low-cost non-member producers whose goods are subjected to tariffs to higher-cost member producers whose goods are not subject to the tariff

theory of comparative advantage

states that a country should focus on producing and exporting goods and services for which it is relatively more productive than other countries; similarly, it should import goods and services for which other countries are relatively more productive than it is

The most well-known, and perhaps the most important tariff-rate quota imposed by the United States involves ______.

sugar

compound tariff

tariff calculated on a combination of value and unit

specific tariff

tariff calculated on a per-unit basis

ad valorem tariff

tariff calculated on the basis of the good's value

tariff

tax imposed on a good or service that is being traded internationally

The Clean Water Act specifically forbids thermal pollution. What is thermal pollution?

the discharge of heated waters or materials into the navigable waters of the U.S.

If the defendant and the FTC cannot agree to a settlement over an advertising claim, what happens?

the matter goes to trial before an ALJ

exchange rate

the price of one currency denominated in terms of a second currency

flexible exchange rate system

the value (price) of a currency fluctuates according to demand and supply for that currency in the foreign exchange market

trade

the voluntary exchange of goods, services, or assets owned by one individual for goods, services, or assets owned by another

Joint ventures (in international business):

two or more firms from different countries agree to create a jointly owned, separate firm to promote their mutual business interests (ex: Nestle, from Europe, and General Mills, from USA, joining together)

The FTC regulates advertising practices that it finds to be _______, even though they might not be deceptive or fraudulent.

unfair

Public procurement (NQNTB)

when a government tries to bias their procurement of goods and services to favor local residents and firms