Question 1

_________________ are often imposed to offset the effects of a subsidy.

Accepted Answer

Countervailing duties
Explanat...

Question 2

Government motivation for restricting trade includes

Accepted Answer

A)   protecting jobs, promoting defense, imposing sanctions, and protecting infant industries.
B)   increasing revenues through duties and tariffs.
C)   a desire for isolationism as a political strength.
D)   increasing domestic consumption and thereby domestic jobs.

Question 3

An example of trade as a political weapon is the U.S.sanctioning of _________ over annexation of the Crimea.

Accepted Answer

Russia
Explanation: ...

Question 4

One critical issue related to ransom is

Accepted Answer

A)   whether to pay and possibly save a life, but reinforce the effectiveness of ransom.
B)   how to fund ransom payments.
C)   whether ransom is connect to piracy.
D)   the safety of those who are being held without access to ATMs.

Question 5

Kidnapping for ____________ is a funding tool of terrorists and a security issue for international businesspeople.

Accepted Answer

ransom
Explanation: ...

Question 6

Trade barriers create costs that are paid ultimately by the

Accepted Answer

A)   government erecting the barrier.
B)   consumer.
C)   country exporting the goods.
D)   exporter.

Question 7

______________ was a leader of Britain's most recent privatization efforts.

Accepted Answer

Thatcher
Explanation...

Question 8

Terrorists avoid kidnapping because the repercussions can be harmful to their movement.

Accepted Answer

A) True 
 B)False

Question 9

_________ can take the form of cash payments to the firm,government participation in ownership,low-cost loans to exporters and foreign buyers to encourage purchase,and preferential tax treatment.

Accepted Answer

Subsidies
Explanatio...

Question 10

Unlike quotas,voluntary export restraints (VERs) are imposed by

Accepted Answer

A)   the importing country's government.
B)   the exporting country's government.
C)   either the importing or exporting country's government; what matters is that they are voluntary.
D)   the importing company.

Question 11

Only in communist countries do governments own the factors of production.

Accepted Answer

A) True 
 B)False

Question 12

A ______________ is a combination of specific and ad valorem duties.

Accepted Answer

compound duty
Explan...

Question 13

Japan,the EU,and ___________ all protect their domestic sugar industry,despite their lack of comparative advantage in sugar production.

Accepted Answer

the US
Explanation: ...

Question 14

China,Russia,Portugal,the U.S.,and ___________ are nations that have recently privatized government-owned assets.

Accepted Answer

The answer of China,Russia,Portugal,the U.S.,and ___________ are nations that have...

Question 15

The imposition of standards is a way to establish nontariff barriers,and the following are examples of the imposition of standards,except for:

Accepted Answer

A)   Japan's refusal to import light mayonnaise containing potassium sorbate.
B)   Canada's categorization of orange juice with added calcium as a drug, subject to special requirements.
C)   the prohibition of imported drugs at the consumer level in the U.S.
D)   tariffs on certain barbiturate imports into the U.S.

Question 16

Governments nationalize private firms in order to

Accepted Answer

A)   extract money from the firms when the firms are suspected of concealing profits.
B)   decrease exports to balance the balance of payments.
C)   learn about business development experientially.
D)   punish workers at the firms for their political activism.

Question 17

Productivity per worker in economically developed countries tends to be

Accepted Answer

A)   higher, due to management skills and advanced technology.
B)   lower, due to higher wages.
C)   irrelevant, because most factory floors are automated.
D)   the equivalent of productivity in less developed countries, due to motivation issues.

Question 18

A percentage of the invoice value of the product is known as ________________ duty.

Accepted Answer

ad valorem
Explanati...

Question 19

Concession dumping is a type of trade discrimination.

Accepted Answer

A) True 
 B)False

Question 20

The U.S.has been concerned about dumping and

Accepted Answer

A)   yet only enacted antidumping measures in 2006.
B)   enacted antidumping measures for its exporting companies as early as 1856.
C)   became one of the first countries to prohibit dumping into its own market, in 1916.
D)   illustrated this with the Boston Tea Party in 1773.

Exam 5: Political Forces That Affect Global Trade

Government motivation for restricting trade includes

Correct AnswerverifiedShow Answer

Concession dumping is a type of trade discrimination.

Correct AnswerverifiedShow Answer

The U.S.has been concerned about dumping and

Correct AnswerverifiedShow Answer

A percentage of the invoice value of the product is known as ________________ duty.

Correct Answerverifiedad valoremExplanati...View AnswerShow Answer

_________________ are often imposed to offset the effects of a subsidy.

Correct AnswerverifiedCountervailing dutiesExplanat...View AnswerShow Answer

Unlike quotas,voluntary export restraints (VERs) are imposed by

Correct AnswerverifiedShow Answer

Japan,the EU,and ___________ all protect their domestic sugar industry,despite their lack of comparative advantage in sugar production.

Correct Answerverifiedthe USExplanation: ...View AnswerShow Answer

Productivity per worker in economically developed countries tends to be

Correct AnswerverifiedShow Answer

______________ was a leader of Britain's most recent privatization efforts.

Correct AnswerverifiedThatcherExplanation...View AnswerShow Answer

Terrorists avoid kidnapping because the repercussions can be harmful to their movement.

Correct AnswerverifiedShow Answer

China,Russia,Portugal,the U.S.,and ___________ are nations that have recently privatized government-owned assets.

Correct AnswerverifiedShow Answer

A ______________ is a combination of specific and ad valorem duties.

Correct Answerverifiedcompound dutyExplan...View AnswerShow Answer

Governments nationalize private firms in order to

Correct AnswerverifiedShow Answer

Trade barriers create costs that are paid ultimately by the

Correct AnswerverifiedShow Answer

_________ can take the form of cash payments to the firm,government participation in ownership,low-cost loans to exporters and foreign buyers to encourage purchase,and preferential tax treatment.

Correct AnswerverifiedSubsidiesExplanatio...View AnswerShow Answer

One critical issue related to ransom is

Correct AnswerverifiedShow Answer

An example of trade as a political weapon is the U.S.sanctioning of _________ over annexation of the Crimea.

Correct AnswerverifiedRussiaExplanation: ...View AnswerShow Answer

Only in communist countries do governments own the factors of production.

Correct AnswerverifiedShow Answer

Kidnapping for ____________ is a funding tool of terrorists and a security issue for international businesspeople.

Correct AnswerverifiedransomExplanation: ...View AnswerShow Answer

The imposition of standards is a way to establish nontariff barriers,and the following are examples of the imposition of standards,except for:

Correct AnswerverifiedShow Answer

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ad valorem
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Countervailing duties
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the US
Explanation: ...
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Thatcher
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compound duty
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Subsidies
Explanatio...
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Russia
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ransom
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