INB Quiz 7
Which of the following is levied as a percentage of the stated price of an imported product?
Ad valorem tariff
Which of the following is more likely to use tariffs as a source of revenue?
Developing nation
Ad valorem, specific, and compound are different types of
tariffs.
The principle that an industry needs protection from international competition until it becomes more innovative, efficient, and competitive is called
the infant industry argument.
Which of the following is the reason why a government might resist the importation of foreign entertainment and media?
Cultural motive
Which of the following is an instrument of trade restriction?
Currency controls
Which of the following is an import quota on a product designed to protect?
Domestic producers that make similar products
Which of the following is an area in which the WTO has no separate agreement?
Environment
What might a nation impose on a product if it wishes to maintain an adequate supply in the home market?
Export quota
A well-known institution that offers financing and insurance to US exporters is the
Export-Import Bank of the United States.
Which of the following is the definition of managed trade?
Government efforts to achieve trade objectives pertaining to market shares or quantities of specific products
Which of the following is a true statement about foreign trade zones?
Increased employment is often the intended purpose.
Which of the following is an advantage of a foreign trade zone?
Lower-than-normal tariffs charged on merchandise
Which of the following charges a lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed a quota?
Tariff quota
Which of the following is a true statement about the global trading system?
The General Agreement on Tariffs and Trade developed into the World Trade Organization.
Which of the following is the reason why the WTO can regulate only the actions of a country that retaliates against a company that is dumping?
The WTO regulates the actions of countries, not companies.
Understaffing customs offices and requiring special import licenses are examples of
administrative delays.
The issue of whether or not a country allows trade in a product considered to have dual uses arises in the context of
exporting.
Free trade is defined as the pattern of imports and exports that occurs
in the absence of trade barriers.
The World Trade Organization tries to strike a balance between international desires for free trade and
national desires for protection.
The requirement that WTO members extend the same favorable terms of trade to all members that they extend to any single member is called
normal trade relations.
The World Trade Organization's TRIPS Agreement helps
standardize intellectual property rules worldwide.
Attempts to affect the outcomes of strategic competition among companies in favor of domestic firms is called
strategic trade policy.
Financial assistance to domestic producers that help domestic firms fend off international competitors is a
subsidy.
Which of the following is the reason for government efforts to protect jobs, preserve national security, and gain influence?
Political motives
