Smartbook 2.0 Lesson 9 - Ch7

Company ABC in Scotland exports a pound of cheese to the United States for $100. The United States places a 9 percent tax on the cheese as a proportion of its value. What type of tariff is this? Ad valorem Spot forward Specific Export

Ad valorem

As noted in the text, the U.S. government used the threat of trade sanctions to try to convince the _____ government to enforce its intellectual property laws since massive copyright infringements in that country have cost U.S. companies millions of dollars in lost revenue. British Russian Mexican Chinese

Chinese

In the mid-1800s, ______ was the first nation to officially follow free trade. Sweden the United States Great Britain France

Great Britain

Country A wants to lower trade barriers with its neighbor, Country B. While both countries support free trade, they are both reluctant to lower their barriers because they are not sure the other country will reciprocate. What obstacle is preventing the advancement of free trade between these countries? Fear of rising producer costs Fear of rising consumer costs Lack of resources Lack of trust

Lack of trust

Which economist was a key figure in the early free trade movement in Great Britain? Keynes Marx Ricardo Samuelson

Ricardo

______ permit a specific quantity of imported goods to enter the country under a reduced rate of duty during the quota period. Specific tariffs Tariff rate quotas Quota tariffs Ad valorem tariffs

Tariff rate quotas

What is considered the simplest instrument of trade policy? Antidumping duties Quotas Subsidies Tariffs

Tariffs

What occurs when a company practices dumping? The firm is placing a quota rent on goods but not services. The firm is unloading excess production in a foreign market. The firm is moving all manufacturing processes to a foreign nation to lower costs. The firm is asking the government for financial assistance to be more competitive.

The firm is unloading excess production in a foreign market.

A country might create safety standards for certain products that other nations can't comply with. As a result, these nations can't be involved with exporting parts for those goods and trade does not exist. These safety standards are a form of _____. administrative trade policy antidumping policy quota rent voluntary export restraint

administrative trade policy

When manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production, it is called ______. dumping embargo arbitration phishing

dumping

When manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production, it is called ______. embargo arbitration phishing dumping

dumping

If a country places a 20 percent tax on dairy products exported to other nations in order to limit exports and have sufficient supplies of dairy products for the home country, it is using a(n) ______. export tariff subsidy embargo import quota

export tariff

If a country places a 20 percent tax on dairy products exported to other nations in order to limit exports and have sufficient supplies of dairy products for the home country, it is using a(n) ______. subsidy import quota embargo export tariff

export tariff

When the government does not use quotas, taxes, or other means to restrict what its citizens can buy from or sell to another country, it is called _ trade.

free

______ trade is the economic policy of not discriminating against exports to or imports from foreign countries. Restricted Free Balanced Fair

free

The United States has placed a limit on the amount of tuna in airtight containers that can be imported into this country. This is an example of a(n) _____. Multiple choice question. import quota export tariff voluntary export restraint subsidy

import quota

The ______ argument for trade intervention states that developing countries need to support new industries until they are strong enough to compete globally. balance sheet infant industry purchasing power parity tragedy of the commons

infant industry

The oldest argument for government intervention in trade in which developing nations must protect their domestic industries until they are ready to compete globally is the ______ argument. voluntary export restraint infant industry local content national security

infant industry

To limit imports over the set quota, tariff rate quotas are common in agriculture. stock prices products dividends jobs

jobs

When governments intervene in foreign trade, they often claim they are protecting ______ from unfair foreign competition. products stock prices dividends jobs

jobs

In order to win a contract in Mexico, QVB Auto Manufacturing must make 65 percent of the component parts of their vehicles in Mexico. This is an example of a(n) local content requirement. local supplier requirement. local distribution requirement. international content requirement.

local content requirement.

A government would impose administrative trade policies in order to foster goodwill among trading nations. make it difficult for imports to enter a country. limit the amount of exports going out of a country. ensure that there is sufficient supply of a good within a country.

make it difficult for imports to enter a country.

A foreign nation is concerned that all jobs in the computer manufacturing industry will be lost to another country. The government decides to step in and prevent this from happening and implements tariffs on certain imports. The leader is praised for this action and reminds voters of this during the next election. In this situation, government intervention is based on a _____ argument. economic social political physical

political

By threatening ______ trade sanctions, one country can convince another country to open its markets. favorable short-term supportive punitive

punitive

By threatening ______ trade sanctions, one country can convince another country to open its markets. short-term punitive favorable supportive

punitive

An import _____ is a type of trade restriction that sets a physical limit on the quantity of a product that can be imported into the country in a set period of time. arbitration subsidy quota tariff

quota

Many Western countries imposed trade sanctions against ______ during the 1980s and 1990s to encourage the country to improve human rights policies by dropping its apartheid policies. South Africa Indonesia South Korea Portugal

south Africa

A tax on imports that is designated as a fixed monetary amount per unit of import is called a(n) ______ tariff. specific spot forward fixed ad valorem

specific

If a country assesses a fixed charge of $5 per unit of rice that's imported, it is using a(n) ______ tariff. forward ad valorem spot specific

specific

The nationwide company, Nightingale Health Systems, received a tax break from the government when it was faltering and ready to declare bankruptcy. This subsidy helped the company with production costs and allowed it to have a stronger presence in the competitive health industry. This tax break is a type of _____. embargo quota subsidy tariff

subsidy

What is considered the simplest instrument of trade policy?

tariffs

Taxes placed on imports to protect domestic producers from foreign competition and to produce revenue for the government are called embargoes. tariffs. income. quotas.

tariffs.

To limit imports over the set quota, tariff rate quotas are common in agriculture. true false

true

Unilateral lowering of trade barriers has not occurred mostly due to a lack of _____ among governments. ethnocentrism trust parity production

trust

Unilateral lowering of trade barriers has not occurred mostly due to a lack of _____ among governments. production trust parity ethnocentrism

trust