MGT 302 Chapter 7 Quiz

The infant industry argument relies on an assumption that firms can make efficient long-term investments by borrowing money from the domestic or international capital market. True or False

False

GATT's objective was to liberalize trade. True or False

True

Which statement is true with respect to multinational firms? Government policies ultimately have little direct impact on a multinational business. Because of their pivotal role in international trade, firms can and do exert a strong influence on government policy toward trade. Multinational firms generally try to encourage their government to resist the WTO and to keep constraints on trade among nations. Despite their pivotal role in international trade, firms do not exert a strong influence on government policy toward trade.

Because of their pivotal role in international trade, firms can and do exert a strong influence on government policy toward trade.

The lack of progress in the Doha Round negotiations has resulted in countries that are forging ahead with their own bilateral agreements. deciding to boycott future meetings in Doha. starting negotiations with new trade partners. refusing to listen to the WTO's recommendations.

forging ahead with their own bilateral agreements.

Which trade policy argument suggests that a government should use subsidies to support promising firms that are active in newly emerging industries? strategic trade policy retaliation policy the infant industry argument the national security argument

strategic trade policy