Archive for February 2018

A voluntary export control is most likely used to

A voluntary export control is most likely used to



A. punish political enemies
B. appeal to domestic politicians
C. avoid trade conflicts with friendly trade partners
D. comply with strict product and testing standards



Answer: C

Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ____.

Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ____.




A. free trade zone
B. tariff rate quota
C. foreign currency control
D. voluntary export restraint



Answer: B

In most cases, tariffs are imposed for the purpose of

In most cases, tariffs are imposed for the purpose of




A. increasing national government revenue
B. complying with trade regulations
C. increasing foreign trade activity
D. protecting consumer safety



Answer: A

Which of the following is NOT an example of regulatory controls as a form of non tariff barrier?

Which of the following is NOT an example of regulatory controls as a form of non tariff barrier?



A. Country A conducts safety inspections of all imported exercise equipment.
B. Country B requires foreign firms to obtain licences before constructing plants.
C. Country C requires producers of cosmetics to obtain government product registration.
D. Country D offers tourists a separate exchange rate than what is offered to importers





Answer: D

France's requirement that during prime time at least 40% of songs on 1700 AM and Fm stations must be written or sung by French or Francophone artists is an example of which type of non tariff barrier?

France's requirement that during prime time at least 40% of songs on 1700 AM and Fm stations must be written or sung by French or Francophone artists is an example of which type of non tariff barrier?





A. product and testing standards
B. restricted access to distribution networds
C. numerical export controls
D. local-purchase requirements



Answer: D

Which of the following is an example of regulatory control non tariff barrier?

Which of the following is an example of regulatory control non tariff barrier?


A. Malaysia's requirement that during prime time at least 40% of songs on the radio be by local artists
B. Turkmenistan's requirement that all imports on consumer goods be approved by the State Standards Committee
C. China's policy that imported sugar be distributed only by state-owned enterprises
D. Canada's requirement that baby food be packaged in 4.5 and 75 ounce containers





Answer: B

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?




A. Malaysia's requirement that during prime time at least 40% of songs on the radio be by local artists
B. Turkmenistan's requirement that all imports on consumer goods be approved by the State Standards Committee
C. China's policy that imported sugar be distributed only by state-owned enterprises
D. Canada's requirement that baby food be packaged in 4.5 and 75 ounce containers




Answer: C

Which of the following is an example of a product and testing standards nontariff barrier?

Which of the following is an example of a product and testing standards nontariff barrier?





A. Malaysia's requirement that during prime time at least 40% of songs on the radio be by local artists
B. Turkmenistan's policy that certification of imported electrical equipment be performed by local laboratories.
C. China's policy that imported sugar be distributed only by state-owned enterprises
D. Canada's requirement that organic baby food be manufactured locally




Answer: B

Thailand's policy whereby foreign banks can operate only three branches and only one of these can be in the city of Bangkok is an example of which type of non tariff barrier?

Thailand's policy whereby foreign banks can operate only three branches and only one of these can be in the city of Bangkok is an example of which type of non tariff barrier?




A. product and testing standards
B. restricted access to distribution networks
C. numerical export controls
D. public-sector procurement policies



Answer: B

The federal government policy that international air travel purchased with US government funds must occur on US airlines is an example of which type of nontariff barrier?

The federal government policy that international air travel purchased with US government funds must occur on US airlines is an example of which type of nontariff barrier?



A. restricted access to distribution networks
B. numerical export controls
C. public-sector procurement policies
D. local-purchase requirements



Answer: C

Country X protects its domestic manufacturers from foreign competition by using a variety of nontariff barriers. Which of the following is NOT one of those nontariff barriers?

Country X protects its domestic manufacturers from foreign competition by using a variety of nontariff barriers. Which of the following is NOT one of those nontariff barriers?



A. foreign trade zones
B. product standards
C. regulatory controls
D. local purchase requirements




Answer: A

Famous Footwear imports a variety of athletic shoes, work boots, and casual footwear from around the world. Which of the following would most likely provide Famous Footwear with a detailed classification scheme for its imported shoes?

Famous Footwear imports a variety of athletic shoes, work boots, and casual footwear from around the world. Which of the following would most likely provide Famous Footwear with a detailed classification scheme for its imported shoes?



A. tariff rate quota
B. ad valorem report
C. compound tariff report
D. harmonized tariff schedule




Answer: D

_____ suggests that special interest groups will often dominate the general interest on any given issue because these groups are willing to work for the passage of laws.

_____ suggests that special interest groups will often dominate the general interest on any given issue because these groups are willing to work for the passage of laws.





A. Strategic trade theory
B. Economic development programs
C. Industrial policy
D. Public choice analysis



Answer: D

The government of Country X is encouraging the growth of domestic manufacturing by implementing high barriers to imported goods. Country X is most likely following a strategy of ______.

The government of Country X is encouraging the growth of domestic manufacturing by implementing high barriers to imported goods. Country X is most likely following a strategy of ______.





A. strategic trade
B. export promotion
C. import substitution
D industrial development



Answer: C

____ suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in oligopolistic industries.

____ suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in oligopolistic industries.




A. national defense argument
B. industrial policy
C. maintenance of existing jobs
D. strategic trade theory





Answer: D

For five years, Harley-Davidson received tariff protection from Japanese imports to allow the motorcycle firm the opportunity to improve its operations and gain market share. This is an example of _____.

For five years, Harley-Davidson received tariff protection from Japanese imports to allow the motorcycle firm the opportunity to improve its operations and gain market share. This is an example of _____.




A. maintenance of existing jobs argument
B. industrial policy argument
C. infant industry argument
D. strategic trade theory




Answer: A

Which of the following statements most likely supports the infant industry argument?

Which of the following statements most likely supports the infant industry argument?





A. Total unit costs decrease through economies of scale and scope
B. Low tariffs to trigger foreign competition increase long-term government revenues
C. Foreign entrepreneurs need assistance to compete in industries
D. Experience of operating over time triggers higher productivity and global competitiveness


Answer: D

The _____ proposes that tariffs be imposed on imported manufactured goods to give US firms temporary protection from foreign competition until they can fully establish themselves.

The _____ proposes that tariffs be imposed on imported manufactured goods to give US firms temporary protection from foreign competition until they can fully establish themselves.





A. national defense argument
B. infant industry argument
C. industrial policy
D. strategic trade theory




Answer: B

If two congressional candidates support fair trade, you can assume that they both support _____.

If two congressional candidates support fair trade, you can assume that they both support _____.




A. providing export subsidies and tax breaks to domestic firms to enhance globalization
B. exerting minimal influence on the import decisions of private firms
C. allowing international supply and demand to rule the market
D. controlling imports to minimize domestic job losses




Answer: D

Free trade ______.

Free trade ______.



A. is another term for managed trade
B. implies that the national government exerts minimal influence on the exporting and importing decisions of private firms
C. proposes that national governments should directly help domestic firms by providing export subsidies and tax breaks
D. suggests that the national government should actively intervene to ensure that domestic firms' exports receive an equitable share of foreign markets and that imports are controlled to minimize losses of domestic jobs and market share in specific industries




Answer: B

The EU believes that Boeing has benefited from unfair trade practices because

The EU believes that Boeing has benefited from unfair trade practices because



A. Boeing had developed new technologies through US Defense Department contracts
B. The US has forgiven significant loans to Boeing
C. Boeing controls the small aircraft market because of US defense contracts
D. The WTO has overlooked direct subsidies from the US government





Answer: A

Boeing accused Airbus of violating international trade laws because _____.

Boeing accused Airbus of violating international trade laws because _____.



A. Airbus' fleet gives it a significant advantage in the small and large aircraft market
B. Airbus received low-cost loans from the foreign governments
C. Airbus has lower cost per sear mile than Boeing
D. Airbus has a monopoly in the jumbo jet market



Answer: B
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