Ch 6 Quiz Questions

When one World Trade Organization member files a complaint against another, decisions are to be rendered in less than one year.

A(n) ________ tariff is levied as a particular fee for each unit of an imported product.

Which of the following is a political motive behind a government's intervention in trade? a. promoting a strategic trade policy b. gaining influence over other nations c. protecting a country from unwanted cultural influence d. protecting young industries from competition

An additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy is called a(n) ________.

Tariffs tend to exact a cost on countries as a whole because they lessen citizens' gains from trade.

Which of the following statements is true about cultural influences? a. Culture and trade are independent of each other. b. Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful. c. The cultures of countries are independent of the effects of exposure to the people and products of other cultures. d. The culture of the United States is readily adapted into the local culture of countries all over world.

The most common economic reason for nations attempts to influence international trade is preserving national security.

Which of the following motives is least likely attributed to Freeland's restriction on free trade? a. political motives b. economic motives c. social motives d. cultural motives

Which of the following countries is seen as a threat to national cultures around the world?

Which of the following statements is true of tariffs? a. Tariffs increase an imported product's appeal to buyers. b. Transit tariffs are the most widely-levied tariffs. c. Ad valorem tariffs are levied as a specific fee for each unit of an imported product. d. Export tariffs are used by countries when they believe an export's price is lower than it should be.

A compound tariff on an imported product is calculated partly as a percentage of its stated price and partly as a specific fee for each unit.

The belief that Freeland's emerging industries need protection from international competition during their development phase is an example of ________.

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent. Imports of rice above the quota limit are charged a tariff of 60 percent. This is an example of a(n) ________.

Which of the following is true of quotas? a. They are the most common type of trade barrier. b. They help domestic producers maintain their market shares and prices. c. Their licenses are granted by governments to other nation companies on a five-year basis. d. They lead to a decrease in the prices of intermediate goods.

The main cultural motive behind government intervention in trade includes protection of domestic jobs.

What best describes the infant industry argument?

A(n) ________ tariff is levied on an imported product and calculated partly as a percentage of its stated price and partly as a specific fee for each unit.

The pattern of imports and exports that would result in lesser trade barriers is called free trade.

A restriction on the amount of a good that can enter or leave a country during a certain period of time is called a(n) ________.

The automobile industry is typically protected for national security reasons.

Transit tariffs have been almost entirely eliminated worldwide through international trade agreements.

Which financial company in the United States is involved in activities of selling of goods abroad, and offers insurance on foreign accounts receivable?

If Konesia chooses to levy tariffs as a percentage of the stated price of an imported product, this would be an example of a(n) ________.

The purpose of ________ is to force companies from other nations to use local resources in their production processes, particularly labor.

The World Trade Organization can punish a country in which a company accused of dumping is based.