CBA 300 Exam 2 WH with Questions and Answers
In some countries, when an import of a product reaches the government-specified amount, then no further imports of that product are allowed for the year. What type of quota does this represent? ANSWER absolute
Timmerson Corp. was frustrated to lear...
CBA 300 Exam 2 WH with Questions and
Answers
In some countries, when an import of a product reaches the government-specified amount,
then no further imports of that product are allowed for the year. What type of quota does this
represent? ANSWER absolute
Timmerson Corp. was frustrated to learn that it would have to pay the same import duty on
shipments worth $100 as it did for shipments costing $2,000. What does the government have
in place that creates this situation for Timmerson Corp.? ANSWER an official price
A country that can sell its products at a lower cost because it has lower standards for
emissions from manufacturing facilities is making use of ANSWER environmental dumping
When governments nationalize a firm, they don't seek to ANSWER extract more money from
the firm.
Jameson Electronics Corp. has $25,000 worth of holiday lights inventory that will soon
become obsolete due to the seasonal nature of the product. The company decides to sell the
inventory at a lower cost in its international market without changing pricing in its domestic
market. What type of action is the company taking? ANSWER dumping
The U.S. government assigns specific amounts of sugar imports that can come from 40
nations. What type of quota does this represent? ANSWER allocated
An example of retaliatory trade restrictions is ANSWER the U.S. response to the EU ban of
hormone-treated beef
, Fair competition is a strong rationale for trade barriers. ANSWER False, Fair competition
argues that import duties should be used to bring the imported item up to the cost of the
domestic one. It eliminates any "unfair" advantage a foreign competitor might have gained
through superior technology, lower taxes, lower raw material costs, or lower labor costs. This
barrier eliminates the competition's comparative advantage.
Unlike quotas, voluntary export restraints (VERs) are imposed by ANSWER the exporting
country's government
The national defense argument for trade restrictions is based on the development level of the
country. ANSWER False, The level of development is not important with regard to trade
restrictions. A nation would protect its own industry, even though foreign nations could be
more advanced in the sector.
Until just a few years ago, the United States levied a 54-cents-a-gallon import duty on foreign
produced ethanol. Which of the reasons for restricting trade does this represent? ANSWER
protect an infant industry
Counterarguments to the "protect domestic jobs from cheap foreign labor" argument include
that ANSWER the labor rate is not all of the labor cost
Tariffs on some products no longer serve their original purpose of protecting domestic
producers but they are still levied by the government. What are these types of tariffs called?
ANSWER nuisance
Country risk assessment is a measure of the ANSWER threat of losing an investment or not
being paid
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