1) The group most likely to become involved in disputes concerning trade protectionism is consumers.
Answer: FALSE
2) Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.
Answer: TRUE
3) The countries most likely to be successful at using trade retaliation are large trading countries.
Answer: TRUE
4) On average, workers displaced by imports earn higher wages in the new jobs they accept.
Answer: FALSE
5) The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.
Answer: TRUE
6) Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.
Answer: TRUE
7) The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.
Answer: FALSE
8) Export prices of primary products fluctuate less than export prices of manufactured products.
Answer: FALSE
9) Import substitution is a program promoting local production of products that would otherwise be imported.
Answer: TRUE
10) Export-led development refers to the off-shoring of production.
Answer: FALSE
11) The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.
Answer: TRUE
12) The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.
Answer: FALSE
13) Countries typically establish export restrictions to encourage the development of substitute products.
Answer: FALSE
14) Export controls are highly effective for digital products, such as computers, TVs, and cameras.
Answer: FALSE
15) The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.
Answer: TRUE
16) Home country consumers are typically active in preventing their domestic companies from dumping products into foreign markets.
Answer: FALSE
17) The essential-industry argument holds that industries with potential export capabilities should be protected.
Answer: FALSE
18) Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.
Answer: FALSE
19) The most common type of tariff is the export tariff.
Answer: FALSE
20) An effective tariff is the sum of the ad valorem tariff plus the specific duty.
Answer: FALSE
21) Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.
Answer: TRUE
22) When customs officials set a value on which to place an import tariff, they ordinarily use the declared invoice price unless they doubt its authenticity.
Answer: TRUE
23) A quota is a quantitative limit on the amount of a product that can be traded.
Answer: TRUE
24) The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.
Answer: FALSE
25) Governments sometimes prohibit operations of private companies, foreign or domestic, in some sectors because they feel these services should not be sold at a profit.
Answer: TRUE
26) At present there is little reciprocal recognition of professional licensing among countries.
Answer: TRUE
27) Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.
Answer: FALSE
28) When a company is seeking protection from imports, it can usually improve its chances of getting that protection if it allies with most of the companies in the industry.
Answer: TRUE
29) The international regulatory situation for trade is becoming more, rather than less, complex.
Answer: TRUE
30) Every time countries enter a new trading agreement, service trade tends to grow more rapidly than merchandise trade.
Answer: FALSE
Answer: FALSE
2) Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.
Answer: TRUE
3) The countries most likely to be successful at using trade retaliation are large trading countries.
Answer: TRUE
4) On average, workers displaced by imports earn higher wages in the new jobs they accept.
Answer: FALSE
5) The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.
Answer: TRUE
6) Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.
Answer: TRUE
7) The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.
Answer: FALSE
8) Export prices of primary products fluctuate less than export prices of manufactured products.
Answer: FALSE
9) Import substitution is a program promoting local production of products that would otherwise be imported.
Answer: TRUE
10) Export-led development refers to the off-shoring of production.
Answer: FALSE
11) The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.
Answer: TRUE
12) The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.
Answer: FALSE
13) Countries typically establish export restrictions to encourage the development of substitute products.
Answer: FALSE
14) Export controls are highly effective for digital products, such as computers, TVs, and cameras.
Answer: FALSE
15) The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.
Answer: TRUE
16) Home country consumers are typically active in preventing their domestic companies from dumping products into foreign markets.
Answer: FALSE
17) The essential-industry argument holds that industries with potential export capabilities should be protected.
Answer: FALSE
18) Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.
Answer: FALSE
19) The most common type of tariff is the export tariff.
Answer: FALSE
20) An effective tariff is the sum of the ad valorem tariff plus the specific duty.
Answer: FALSE
21) Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.
Answer: TRUE
22) When customs officials set a value on which to place an import tariff, they ordinarily use the declared invoice price unless they doubt its authenticity.
Answer: TRUE
23) A quota is a quantitative limit on the amount of a product that can be traded.
Answer: TRUE
24) The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.
Answer: FALSE
25) Governments sometimes prohibit operations of private companies, foreign or domestic, in some sectors because they feel these services should not be sold at a profit.
Answer: TRUE
26) At present there is little reciprocal recognition of professional licensing among countries.
Answer: TRUE
27) Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.
Answer: FALSE
28) When a company is seeking protection from imports, it can usually improve its chances of getting that protection if it allies with most of the companies in the industry.
Answer: TRUE
29) The international regulatory situation for trade is becoming more, rather than less, complex.
Answer: TRUE
30) Every time countries enter a new trading agreement, service trade tends to grow more rapidly than merchandise trade.
Answer: FALSE
Learn More :
Multinational Business Chapter 6
- In most cases, trade protectionism makes it easier for a company to buy what it needs and to sell products in global markets.
- The term protectionism, when applied to international trade, refers to governmental restrictions and incentives to affect trade flows.
- People who argue for keeping the U.S. trade embargo with Cuba claim all of the following EXCEPT which one?
- People who argue for lifting the U.S. trade embargo with Cuba claim all of the following EXCEPT which one?
- The U.S. catfish industry successfully petitioned the U.S. government to require that catfish varieties imported from Vietnam be labeled as tra, basa, or pangasius. This is an example of which of the following?
- The U.S. catfish industry petitioned the U.S. government for increased taxes on imported Vietnamese fish, claiming that the fish were being sold below the cost of production. The U.S. catfish industry was accusing the Vietnamese fish industry of ________.
- Which of the following is NOT causing greater complexity in the regulation of trade?
- In nearly half the cases in which U.S. firms have requested protection from imports, one or more U.S. companies in the industry opposed the protection. What was the reason for opposing protection?
- Companies with ________ would most likely oppose global protectionist measures.
- The U.S. automobile industry has attempted to counter import competition in all the following ways EXCEPT ________.
- A physician, who is a citizen of and licensed in Country A, meets the professional licensing requirements of Country B. The physician will most likely ________.
- The fact that there are few reciprocal agreements among countries on the licensing of professionals most likely means that ________.
- Which of the following hypothetical examples would be a restriction on the import of services?
- Why are offsets considered protectionist measures?
- An import license is ________.
- A voluntary export restriction (VER) refers to ________.
- In international trade, what is a quota?
- Most countries have agreed on how to assess values when their customs agents levy tariffs. Which of the following best expresses this agreement?
- Tied aid requires a recipient to ________.
- In most cases, which type of government protection assistance is most controversial?
- What is the primary difficulty associated with dismantling developed countries' agricultural subsidies?
- Which term refers to a tariff or duty assessed as a percentage of an item's value?
- In addition to protection, tariffs serve to ________.
- An import tariff may be protective ________.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.