Ch 7 Warm up ​________ are taxes placed on imported goods that increase the final purchase price for consumers.

​________ imposes limitations on the expenditure or outflow of tangible currency from a certain nation or on the influx​ of foreign currencies. A. Currency control B. A countervailing duty C. A quota D. A non tariff trade barrier E. Export control

A. Currency control

________ represent locations at the ports of entry in each country where government authorities inspect imported products and levy tariffs. A. Customs B. Foreign trade zones C. Regional economic blocs D. Maquiladoras E. Export trade zones

A. Customs

Government intervention and trade barriers imposed by developed countries raise​ ______ for developing economies that supply them because tariffs are often disproportionately high. A. ethical concerns B. export controls C. economic freedom levels D. subsidies E. quotas

A. ethical concerns

Which term refers to exported goods being priced lower than their typical value whether in​ home-country markets or foreign​ markets? A. Subsidizing B. Dumping C. Export controls D. Countervailing duties E. Nontariff trade barriers

B. Dumping

Which of the following BEST defines​ maquiladoras? A. Areas within a country that receive imported goods for assembly B. Export-assembly plants C. Taxes imposed on products that will be dumped D. Transfer payments made directly to foreign firms E. Tariffs imposed on products imported into a country

B. Export-assembly plants

A specific region that is located within a nation is treated as if it were outside the​ nation's borders. This region is designated to receive imported products that are not subject to tariffs and that are intended for assembly and subsequent​ re-export. Which term best describes this​ region? A. Common market B. Foreign trade zone C. Economic union D. Free trade area E. Regional economic integration

B. Foreign trade zone

Which of the following is a stage of regional integration in which member countries decide to remove tariffs and other barriers to trade within the​ bloc, but maintain trade barriers with nonmember​ countries? A. Economic union B. Free trade area C. Common market D. Foreign trade zone E. Customs union

B. Free trade area

In​ a(n) ________, barriers to trade within a participating country are reduced or​ eliminated, shared external barriers are​ established, and unrestricted movement of​ goods, services, and factors of production is permitted. A. unrestricted trade location B. common market C. overseas trade region D. free trade area E. customs union

B. common market

Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling trade​ disagreements? A. World Bank B. United Nations C. European Union D. General Agreement on Tariffs and Trade E. Smoot-Hawley Tariff Act

D. General Agreement on Tariffs and Trade

Which of the following is the​ world's most advanced and largest regional economic​ bloc? A. MERCOSUR B. North American Free Trade Agreement C. Association of Southeast Asian Nations D. Asia Pacific Economic Cooperation E. European Union

E. European Union

Which of the following was formed by three countries to increase market​entrance, remove barriers to​ trade, establish investment​ standards, and encourage bidding on government contracts within the three countries participating in​ it? A. Association of Southeast Asian Nations B. Asia Pacific Economic Cooperation C. European Union​ (EU) D. MERCOSUR E. North American Free Trade Agreement​ (NAFTA)

E. North American Free Trade Agreement​ (NAFTA)

​________ are taxes placed on imported goods that increase the final purchase price for consumers. A. Quotas B. Nontariff trade barriers C. Subsidies D. Export controls E. Tariffs

E. Tariffs

Due to the larger market size of an economic​ bloc, member country firms are able to reduce their product prices because they can​ ________. A. implement a different organizational structure B. seek investments from external sources C. impose duties on block members D. gain political support E. attain economies of scale

E. attain economies of scale

Regional integration enables member countries to gain bargaining power in world affairs by​ ________. A. expanding the market size of member country firms B. helping member country firms to achieve economies of scale C. enhancing the productivity of member countries D. attracting direct investment from outside the bloc E. establishing a stronger political position as a united bloc

E. establishing a stronger political position as a united bloc