chapter 6 international business

According to the infant industry​ argument, a​ country's emerging industries need protection from international competition during their development phase until they become sufficiently competitive internationally. Which of the following represents a major consequence to this​ argument?

.Complacency toward innovation

The General Agreement on Trade in Services​ (GATS) created during the Uruguay Round identifies four different forms that international trade in services can take. Which of the following is NOT one of those​ forms?

Agriculture subsidy

Which of the following is an additional tariff placed on an imported product that a nation believes is receiving an unfair​ subsidy?

Countervailing duty

A government may impose an import quota to protect its domestic producers by placing a limit on the amount of goods allowed to enter the country. Who are the winners of imposing such​ quotas?

Domestic producers

Western European plastic producers considered retaliating against Asian competitors whose prices were substantially lower in European markets than at home. Which of the following is this an example​ of?

Dumping

What method of trade restriction is the U.S. using with​ Cuba?

Embargo

Governments often promote exports by helping companies finance their export activities. Which U.S. financing entity finances the export activities of companies in the United States and offers insurance on foreign accounts​ receivable?

Ex-Im Bank

Which of the following is the pattern of imports and exports that occurs in the absence of trade​ barriers?

Free Trade

The United States has banned all trade and investment with Cuba since 1962. This is an example of which type of government political​ intervention?

Gaining influence

One of the most common instruments that government uses to promote trade with other nations is the establishment of a foreign trade zone. Which of the following is not an advantage of a free trade​ zone?

Increase government revenue by applying additional import tariff.

Which of the following has eliminated all tariffs and nontariff trade barriers on goods originating within North​ America?

NAFTA

Governments of most nations have special agencies responsible for promoting exports. Which of the following is NOT a type of export​ promotion?

Paying import duties

For which of the following political motives do governments intervene in trade in order to ban certain​ defense-related goods from export to other​ nations?

Preserve national security

Consumers often end up paying more for products because of a lack of competition. Which of the following is a type of government intervention that leads to this​ problem?

Protection of infant industries

Which of the following is considered government​ subsidy?

Providing tax breaks and product price support

All of the following are political motives behind government intervention in trade EXCEPT​ ________.

Pursuing strategic trade policy

Which of the following is a restriction on the amount​ (measured in units or​ weight) of a good that can enter or leave a country during a certain period of​ time?

Quota

Which of the following describes administrative​ delays?

Regulatory controls or bureaucratic rules designed to impair the flow of imports into a country

You are a manager of a U.S. firm that plans on exporting a product that is designated as a dual use product and you need to have a U.S. government approval before export can take place. What is the political motive behind this​ intervention?

To preserve national security

In​ 1980, the closing of U.S.​ carmakers' production facilities in the United States was creating a volatile​ anti-Japan sentiment among the population and the U.S. Congress. Fearing punitive​ legislation, the Japanese government and its carmakers decide to limit its automobile exports to the United States. Which of the following is this an example​ of?

Voluntary export restraint​ (VER)

The creation of the​ ________ was perhaps the greatest achievement of the 1986 Uruguay Round.

World Trade Organization

Tariffs that are called specific tariffs are levied based on​ ________.

a specific fee for each unit​ (measured by​ number, weight,​ etc.) of an imported product

​A(n) ________ is levied as a percentage of the stated price of an imported product.

ad valorem tariff

Export tariff is levied mostly by the government of a country that is​ ________.

exporting products that consist mostly of​ low-priced natural resources

When a certain portion of the end product must consist of domestically produced goods or that a certain portion of the final cost of a product must come from domestic​ sources, this is the result of​ _________.

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