The industrialization argument for trade protection in developing countries is based on the assumption that ________.

The industrialization argument for trade protection in developing countries is based on the assumption that ________.

A) the protected industry will become competitive over time with economies of scale
B) unemployment and underemployment exist in rural areas, so little agricultural output is lost as people move into industrial jobs
C) subsidizing production is a better means of protection than limiting imports
D) it is better to depend on buying agricultural surpluses from developed countries than to produce these agricultural goods


Answer: B) unemployment and underemployment exist in rural areas, so little agricultural output is lost as people move into industrial jobs

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Multinational Business Chapter 6

• Multinational Business Chapter 6 True and False
• 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 ________.

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