MGT 301 Ch 5

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

a. They impose additional costs on producers. b. They are forms of discrimination against imports. c. They can be quantitative and nonquantitative. e. They impose additional costs on customers

Which duty is stated as a percentage of the invoice value of the product? a. ad valorem b. compound c. voluntary d. specific

a. ad valorem

Economists agree that political barriers to trade _________. (Check all that apply.) a. are detrimental to trade b. reduce economic efficiencies c. encourage terrorism d. increase economies of scale

a. are detrimental to trade b. reduce economic efficiencies

Any illegal Internet-mediated activity that takes place in electronic networks is called _________. a. cybercrime b. ad valorem c. piracy d. phishing

a. cybercrime

Which of the following cybercrimes are most often targeted at businesses? (Check all that apply.) a. domain-related offenses b. carbon footprinting c. hacking d. data espionage

a. domain-related offenses c. hacking d. data espionage

Supporters of fair competition suggest that an import ________ will bring the cost of imported goods up to the cost of domestically produced goods. a. duty b. quota c. custom d. standard

a. duty

Which of the following are government resources used to protect citizens when they are abroad? (Check all that apply.) a. embassies b. consulates c. central intelligence agency d. U.S. Department of State

a. embassies b. consulates

Which of the following are government resources used to protect citizens when they are abroad? (Check all that apply.) a. embassies b. central intelligence agency c. U.S. Department of State d. consulates

a. embassies d. consulates

Antiterrorism training courses for executives often cover _______. (Check all that apply.) a. evasive driving techniques b. security measures for the home c. the safest areas to live d. crisis management e. escape tactics

a. evasive driving techniques d. crisis management e. escape tactics

Voluntary export restraints are export quotas imposed by the _________ nation. a. exporting b. importing

a. 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. a. higher b. lower

a. higher

Which of the following can businesses use to protect themselves against threats? (Check all that apply.) a. insurance b. employee training programs c. outsourced skills d. trade protectionism

a. insurance b. employee training programs c. outsourced skills

What are the areas of increasing concern to governments as they try to protect business activities? (Check all that apply.) a. kidnapping b. larceny c. terrorism d. cybercrime e. piracy

a. kidnapping c. terrorism d. cybercrime e. piracy

What kind of assistance can be provided by embassies and consular offices? (Check all that apply.) a. monitor nationals imprisoned abroad b. provide armed escorts out of dangerous situations c. file protests for abused citizens d. inform about local political risk e. help citizens contact family for money transfers

a. monitor nationals imprisoned abroad c. file protests for abused citizens d. inform about local political risk e. help citizens contact family for money transfers

What kind of assistance can be provided by embassies and consular offices? (Check all that apply.) a. monitor nationals imprisoned abroad b. provide armed escorts out of dangerous situations c. help citizens contact family for money transfers d. file protests for abused citizens e. inform about local political risk

a. monitor nationals imprisoned abroad c. help citizens contact family for money transfers d. file protests for abused citizens e. inform about local political risk

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

a. national laws b. negotiations between governments d. institutions such as the WTO

Subsidies can take the form of _______. (Check all that apply.) a. preferential tax treatment b. cash payments to the firm c. government participation in ownership d. countervailing duties

a. preferential tax treatment b. cash payments to the firm c. government participation in ownership

Which quantitative nontariff barrier sets numerical limits for specific kinds of goods that a country will permit to be imported during a specified period? a. quota b. levy c. custom d. duty

a. quota

Which of the following is an example of a government-owned business in the United States? a. United Nations b. Export-Import Bank c. National Rifle Association d. Federal Trade Commission

b. Export-Import Bank

Julie's company imports all of its athletic shoe products from outside of the United States because it can obtain them for a lower cost based on the lack of environmental standards found in some countries. Those countries are engaged in ________ dumping. a. social b. regulatory c. predatory d. environmental

d. environmental

In 2012, the Argentine energy company YPF was taken over by the Argentine government because the government said YPF was not investing sufficiently in the country. The government takeover of YPF is an example of nationalization or _________. a. intrastate business b. piracy c. a risk profile d. expropriation

d. expropriation

A tariff-rate _________ permits a stipulated amount to enter duty-free or at a low rate, but a much higher duty is charged for additional quantities. a. arrangement b. standard c. custom d. quota

d. quota

In the past, the U.S. government provided payments to farmers as a way to manage surplus food resulting from increased production needed to fuel WWII and to feed Europe. The government offset and controlled the overproduction of these crops so as to prevent them from flooding the market. These payments to farmers were an example of _________. a. quotas b. duties c. tariffs d. subsidies

d. subsidies

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

decrease

In _____ kidnapping, the victim is kidnapped, often near an airport or international hotel, and forced to withdraw money from cashpoints or an ATM before being released.

express

True or false: A compound duty is a combination of specific and nontariff barriers.

false

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

false

True or false: Government ownership of a business can result in putting profits ahead of social goals.

false

True or false: Import duties mean lower prices for the consumer.

false

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

false

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

false

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

global

After expropriation occurs, a business is owned by the _____.

government

Countervailing duties are imposed by a _____ (business/government) to offset the effects of a subsidy.

government

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

government

Official prices are determined by _____ (government/businesses) to correct for deficiencies in ad valorem duties.

government

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

greater

Tariffs are also called _____ (import/export) duties.

import

Customs is a general term for duties paid on _____.

imports

A variable _____ guarantees that the market price of the import will be the same as that of domestically produced goods.

levy

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

local

Currently, the most vulnerable area for cybercrime for many organizations is _____ (mobile/desktop) technology.

mobile

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

nationalize

The requirement that foods sold to the U.S. Department of Agriculture for use in school lunches must be produced in the United States is an example of a _____ (quantitative/nonquantitative) nontariff barrier.

nonquantitative

Tariffs assessed at very low rates are called _____ tariffs.

nuisance

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(n) _____ duty is a fixed sum of money charged for a specified physical unit of the product.

specific

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

terrorism

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

terrorism

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

true

True or false: Kidnappings now outnumber shootings of aid workers.

true

True or false: The payment of ransoms to terrorist organizations violates international law.

true

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

unstable

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

Japan

Which U.S. legislation prohibits public-sector organizations from purchasing from foreign suppliers? a. Buy American Act b. WTO Government Procurement Agreement c. North American Free Trade Agreement d. Trade Adjustment Assistance Act

a. Buy American Act

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

a. It impedes efforts to sustain international market share. b. It reduces export revenues for the country's

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

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

Why is paying ransoms often counterproductive? (Check all that apply.) a. It reinforces kidnappers' actions. b. It rewards the kidnappers. c. Victims are seldom released. d. It funds terrorism.

a. It reinforces kidnappers' actions. b. It rewards the kidnappers. d. It funds terrorism.

In 2018, U.S. trade policy included active sanctions against _______. (Check all that apply.) a. Libya b. South Korea c. Iraq d. Sudan e. North Korea

a. Libya d. Sudan e. North Korea

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

Government intervention in trade would have been welcomed when _________ imposed a 241% tariff on milk from the United States. a. Australia b. Japan c. Mexico d. Canada

d. Canada

_______ dumping occurs when producers have lower wage rates, lower social costs, poor worker benefits, and poor working conditions. a. Predatory b. Regulatory c. Environmental d. Social

d. Social

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. a. monopolistic b. absolute c. perfect d. comparative

d. comparative

Economists argue that the best way to protect national security and provide for national defense is through _________. a. the implementation of isolationism b. imposition of sanctions c. complete embargo d. direct government subsidies

d. direct government subsidies

_____ is hijacking that includes kidnapping on the seas.

Piracy

Dumping is defined in several ways. Which of the following are definitions of dumping? (Check all that apply.) a. selling a product abroad for less than the price in the home market b. selling a product abroad for less than the price of domestic producers c. selling a product abroad for less than the cost of production d. selling a product abroad for less than the price to third-party countries

a. selling a product abroad for less than the price in the home market c. selling a product abroad for less than the cost of production d. selling a product abroad for less than the price to third-party countries

Regardless of the value of the invoice, Kendall's company charges $0.14 per pound of butter exported. This tax is an example of a(n) ________ duty. a. specific b. variable c. compound d. ad valorem

a. specific

Businesses like peace and predictability because they provide _________. a. stability b. challenges c. instability d. change

a. stability

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

a. standards b. direct government participation in trade d. customs and other administrative procedures

What is the most common form of direct government participation in trade? a. subsidy b. customs duties c. quota d. treaty

a. subsidy

Which of the following permits a stipulated amount of a good to enter duty-free or at a low rate, but when that amount is reached, a much higher duty is charged for additional quantities? a. tariff-rate quota b. embargoes c. customs taxes d. orderly marketing arrangements

a. tariff-rate quota

Which of the following are reasons for governments to own businesses? (Check all that apply.) a. to ensure equal access to public goods b. to ensure control over basic services c. to provide vital services such as national defense d. to protect against corruption e. to ensure economic goals are pursued ahead of social goals

a. to ensure equal access to public goods b. to ensure control over basic services c. to provide vital services such as national defense d. to protect against corruption

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

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

A(n) _________ guarantees that the market price of the import will be the same as that of domestically produced goods. a. variable levy b. ad valorem duty c. official price d. compound duty

a. variable levy

The rates for nuisance tariffs are _________. a. very low b. very high c. determined by the product d. the result of subsidies

a. very low

A(n) _____ duty is a combination of specific and ad valorem duties.

compound

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

b. The cost-of-labor argument does not take into account relative productivity rates of workers in different countries. c. Wages do not account for all the labor costs.

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

b. a pattern of unpredictable change c. inability to ensure peace

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

b. achieve economies of scale c. obtain the required investment capital d. train the labor force e. master production techniques

Which of the following industries has the highest tariffs worldwide? a. automobiles b. agriculture c. pharmaceuticals d. textiles

b. agriculture

What do competitors in importing nations ask their governments to impose to offset the effects of a subsidy? a. variable levies b. countervailing duties c. predatory dumping d. nuisance tariffs

b. countervailing duties

Antiterrorism training courses for executives often cover _______. (Check all that apply.) a. security measures for the home b. crisis management c. the safest areas to live d. escape tactics e. evasive driving techniques

b. crisis management d. escape tactics e. evasive driving techniques

What is the general term for duties paid on imports? a. quotas b. customs c. barter d. excise tax

b. customs

When governments impose trade restrictions, the cost of the traded goods will _________. a. remain the same b. increase c. decrease

b. increase

A(n) ______ guarantees that a certain minimum import duty will be paid regardless of the actual invoice price. a. exact excise tax b. official price c. variable levy d. specific duty

b. official price

When a manufacturer lowers its export price to force the importing nation's domestic producers out of business, expecting to raise the price once it has accomplished that objective, the manufacturer is engaged in _________. a. domestic subsidizing b. predatory dumping c. cost-of-labor analysis d. ad valorem pricing

b. predatory dumping

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

b. predictable fiscal policies c. predictable monetary policies d. maintains itself in power

What are some of the reasons a government would restrict trade? (Check all that apply.) a. increase economies of scale b. preserve domestic jobs c. promote national defense d. protect domestic infant industries

b. preserve domestic jobs c. promote national defense d. protect domestic infant industries

A business would purchase KRE insurance as a way to protect itself from kidnapping, ________, and extortion. a. rogue states b. ransom c. risk d. radiation

b. ransom

Economists agree that political barriers to trade _________. (Check all that apply.) a. increase economies of scale b. reduce economic efficiencies c. encourage terrorism d. are detrimental to trade

b. reduce economic efficiencies d. are detrimental to trade

Which one of the following would be recognized in a country risk assessment? a. available environmental resources b. revolution against the government c. pollution levels d. leading education facilities

b. revolution against the government

Which of the following nonquantitative nontariff barriers are established to protect the health and safety of a nation's citizens but can also be complex and discriminatory towards exporting firms? a. quotas b. standards c. customs d. tariffs

b. standards

It is estimated that worldwide there are more than _________ ransom and kidnapping situations every year. a. 1,000 b. 3,000 c. 16,000 d. 500

c. 16,000

There are several layers of defense against cybercrime. One of these is the actual physical layer, which includes _________. a. applications b. competition c. buildings d. data

c. buildings

One way for businesses to protect themselves is to obtain KRE insurance, which protects against kidnapping, ransom, and _________. a. electrical fires b. emergencies c. extortion d. exports

c. extortion

What are three typical objectives of terrorism? (Check all that apply.) a. foster a homogeneous society b. increase social stability c. gain release of imprisoned colleagues d. exact revenge for real or imagined wrongs e. overthrow a government

c. gain release of imprisoned colleagues d. exact revenge for real or imagined wrongs e. overthrow a government

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 _________. a. kidnapping b. footprinting c. piracy d. cybercrime

c. piracy

Food nutrition labeling requirements are an example of a government _________. a. quota b. tax c. standard d. tariff

c. standard