Module 5 - INTB 3355

True or false: A compound duty is stated as a percentage of the invoice value of the product.

False: An ad valorem duty is stated as a percentage of the product's invoice value.

True or false: Sanctions are effective at achieving their goal of forcing change in the targeted country.

False: Sanctions seldom achieve their goal of forcing change in the targeted country

International firms can be protected from terrorism and cybercrime through (business/government) actions

Government

Unlawful acts of violence committed to achieve a variety of objectives are collectively known as

Terrorism

Which duty is stated as a percentage of the invoice value of the product?

ad valorem

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

direct government subsidies

Quotas are usually (local/global) in nature, with the total amount fixed regardless of the source

global

With the advent of WTO agreements, nontariff barriers have gained (greater/lesser) importance.

greater

Tariffs are also called (import/export) duties.

import

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

Under an orderly marketing arrangement, there is an agreement that each nation will preserve some of the national market for (local/global) producers.

local

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

A pattern of unpredictable change Inability to bring peace

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

Are detrimental to trade Reduce economic efficiences

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

Commodity Credit Corporation or The Export-Import Bank or The Farm Credit Banks

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) _________ _________ 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.

Country risk

The Smoot-Hawley Tariff Act demonstrates how tariffs can cause world trade to (increase/decrease).

Decrease

Voluntary export restraints are export quotas imposed by the _________ nation.

Exporting

When comparing production levels at automotive plants in Mexico and the United States, productivity per worker is ________ in the United States than in Mexico

High

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

Increase

What are the potential drawbacks to placing a ban on the export of advanced technologies? (Check all that apply.)

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

Governmental intervention in trade reflects a governmental trade strategy in (Japan/United States)

Japan

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

National Laws Negotiations Between Governments Institutions like the WTO

When governments ___________ private firms, they move them from private ownership to public ownership.

Nationalize

What are three typical objectives of terrorism? (Check all that apply.)

Overthrow a government Gain the release of imprisoned colleagues Exact revenge for real or imagined wrongs

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

Preserve domestic jobs Promote National Defense Protect domestic infant industries

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. Thatcher was implementing (nationalization/privatization).

Privatization

The selling of government-owned businesses to the private sector is known as

Privatization

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

In 2018, U.S. trade policy included active sanctions against _______. (Check all that apply.)

Sudan Libya North Korea

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.

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

Train labor force Master Production Techniques Achieve Economies of Scale Obtain the Required Investment Capital

True or false: A national system of law can minimize unfair international competition.

True

When a government makes radical policy changes, it is viewed as (stable/unstable).

Unstable

Which of the following statements are accurate regarding the cost-of-labor argument? (Check all that apply.)

Wages do not account for all the labor costs. 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.

Which of the following are reasons why governments nationalize private firms? (Check all that apply.)

to extract more money from the firms to increase profitability to follow an economic or political ideology to control an earlier investment in a firm