INTB 3355 SmartBook Module 5: Political Forces

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

*terrorism

Select all that apply What are some of the reasons a government would restrict trade? (Check all that apply.) protect domestic infant industries increase economies of scale preserve domestic jobs reduce sanctions imposed on other countries promote national defense

*protect domestic infant industries *preserve domestic jobs *promote national defense

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

A country __________ 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.

*risk

Select all that apply Which of the following are characteristics of nontariff barriers? (Check all that apply.) They are forms of discrimination against imports. They impose additional costs on customers. They impose additional costs on producers. They encourage international trade. They can be quantitative and nonquantitative.

*They are forms of discrimination against imports. *They impose additional costs on customers. *They impose additional costs on producers. *They can be quantitative and nonquantitative.

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

*True [National law can minimize unfair competition]

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

*Export-Import Bank

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: Import duties mean lower prices for the consumer.

*False [Import duties raise the price of the good for the consumer]

True or false: In most parts of the world, you will not find government-owned businesses.

*False [Nearly all types of economies have some form of government-owned business]

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]

Select all that apply What are the potential drawbacks to placing a ban on the export of advanced technologies? (Check all that apply.) It impedes the funding of continued innovation. It reduces export revenues for the country's manufactures. It impedes efforts to sustain international market share. It prevents valuable technology from being used to strengthen competitors.

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

Because ______ has a national trade policy, its government intervention in trade reflects a government trade strategy.

*Japan

Select all that apply In 2020, U.S. trade policy included active sanctions against which three countries? South Korea Libya North Korea Iraq Sudan

*Libya *North Korea *Sudan

__________ is when a government takes a private firm to public ownership.

*Nationalization or Nationalize

____________ is hijacking that includes kidnapping on the seas.

*Piracy

Currently, which area is labeled as one of the highest risk areas for kidnapping?

*South America

Businesses like peace and predictability because they provide ______.

*stability

Select all that apply Which of the following statements are accurate regarding the cost-of-labor argument? (Check all that apply.) The cost-of -labor argument for trade restrictions is a simple one. Wages do not account for all the labor costs. Comparing low foreign hourly wages to domestic hourly wages is misleading. The cost-of-labor argument does not take into account relative productivity rates of workers in different countries.

*Wages do not account for all the labor costs. *Comparing low foreign hourly wages to domestic hourly wages is misleading. *The cost-of-labor argument does not take into account relative productivity rates of workers in different countries.

Match the characteristic of a quota to its correct definition. absolute global allocated

*absolute->Once the specified amount has been imported, further importation for the rest of the period is prohibited. *global->The total amount is fixed without regard to source. *allocated->The government of the importing nation assigns quantities to specific countries.

A pharmaceutical firm pays import duties that are stated as a percentage of the invoice value of the product. This is an example of what type of tariff?

*ad valorem

Select all that apply Economists agree that political barriers to trade ______. (Check all that apply.) are detrimental to trade reduce economic efficiencies increase economies of scale encourage terrorism

*are detrimental to trade *reduce economic efficiencies

Instability as it pertains to government means that the government ______.

*cannot maintain itself in power.

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

Select all that apply What are the three types of tariffs? compound ad valorem specific competitive regulated

*compound *ad valorem *specific

What area, particularly related to the Internet, is of increasing concern to governments as they try to protect the business activities of their citizens?

*cybercrime

Select all that apply What are the three major groupings of nonquantitative nontariff barriers? (Check all that apply.) direct government participation in trade standards customs and other administrative procedures voluntary export restraints

*direct government participation in trade *standards *customs and other administrative procedures

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

*direct government subsidies

Supporters of fair competition suggest that an import ______ will bring the cost of imported goods up to the cost of domestically produced goods.

*duty

Voluntary export restraints are export quotas imposed by the ______.

*exporting nation

Select all that apply What are three typical objectives of terrorism? gain release of imprisoned colleagues exact revenge for real or imagined wrongs increase social stability foster a homogeneous society overthrow a government

*gain release of imprisoned colleagues *exact revenge for real or imagined wrongs *overthrow a government

As a result of WTO agreements, nontariff barriers have ______.

*gained greater importance

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

*government

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

*higher

Tariffs are also called _______ duties.

*import

Select all that apply Which of the following challenges can unstable governments present to businesses? (Check all that apply.) gradual policy changes inability to ensure peace a pattern of unpredictable change strong political policies

*inability to ensure peace *a pattern of unpredictable change

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

*increase

A request for ransom is associated with the extreme act of __________.

*kidnapping or terrorism

Select all that apply Which methods can a government use to minimize unfair international competition? (Check all that apply.) national laws universal system of law negotiations between governments institutions such as the WTO

*national laws *negotiations between governments *institutions such as the WTO

When governments ______ private firms, they take them from private to public ownership.

*nationalize

Direct government participation in trade, customs and other administrative procedures, and standards are all ______.

*nonquantitative nontariff barriers

A(n) ______ is a formal agreement between the governments of exporting and importing countries that stipulate the import or export quotas each nation will have for a good in order to restrict international competition and preserve some of the national market for local producers.

*orderly marketing arrangement

U.S. cargo ships have been hijacked by groups from West Africa who demand money for the release of the ship. This form of hijacking is called ______.

*piracy

Select all that apply Which of the following are characteristic of a stable government? (Check all that apply.) predictable fiscal policies radical political policies predictable monetary policies maintains itself in power

*predictable fiscal policies *predictable monetary policies *maintains itself in power

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. This is an example of ______.

*privatization

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

*privatization

Select all that apply Which of the following are reasons why governments nationalize private firms? (Check all that apply.) to increase profitability to control an earlier investment in a firm to follow an economic or political ideology to reduce the extent of bureaucracy to extract more money from the firms

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

Select all that apply Advocates for the protection of an infant industry claim that firms need protection from imports until they ______. (Check all that apply.) train the labor force achieve economies of scale obtain all the factors of production obtain the required investment capital master production techniques

*train the labor force *achieve economies of scale *obtain the required investment capital *master production techniques

An orderly marketing arrangement is a type of ______.

*voluntary export restraint

Which of the following is issued by the exporting country rather than imposed by the importing one?

*voluntary export restraints