MGT 302 International business exam 2

Which country was the first to officially follow a policy of free trade in the mid 1800s?

Great Britain

Governments implement Blank______ trade policies that are designed to make it difficult for imports to enter a country.

administrative

Tariff rates on Blank______ products are generally much higher than tariffs on manufactured products or services.

agricultural

Strategic trade policy suggests a(n) Blank______ justification for government intervention in trade.

economic

The WTO is more successful than GATT because the WTO has Blank______ mechanisms that make it more effective.

enforcement

Tariff rates on agricultural products tend to be ________ tariff rates on a manufactured good.

higher than

In response to the apparent failure of the current Doha Round, many nations have implemented _______.

multilateral trade agreements

Rising pressures for Blank______ lead to ongoing GATT negotiations via the Uruguay Round.

protectionism

Member nations hoped that the WTO would be a facilitator of future trade deals especially in the area of ______.

services

What are two drawbacks of government intervention in free trade?

It protects inefficient industries. It invites retaliation and trade wars.

The Uruguay Round started in 1986 and eventually provided for which three provisions?

Reducing tariffs on industrial goods Reducing agricultural subsidies Reducing tariffs on manufactured goods

What measure did many countries use to get around GATT regulations in the 1980s?

voluntary export restraints

______ constrain a firm's ability to export its products by raising the price of the exported product, which could put the firm at a competitive disadvantage with domestic firms in that country.

Tariff barriers

During the 1980s, the trend was for _________ protectionism around the world.

greater

Krugman promoted the idea that if each country seeks to follow a strategic trade policy to protect its interests, this may lead to Blank______.

interest groups

With regard to strategic trade policy, what are two actions governments take in response to pressure from business firms?

1. Push for more open markets and freer trade 2. Increased protectionism

What are two ways trade barriers hamper a firm's productive activities?

1. Quotas limit the ability to serve a country from outside locales. 2. They raise the cost of exporting products. HOWEVER the following is NOT true for some reason: They limit imports a firm may need.