Business & Finance Chapter 22 Which of the following is a way to regulate imports

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59. Which of the following is a way to regulate imports:

a. complicated customs procedures

b. government procurement policies

c. safety and manufacturing standards

d. all the other specific choices are correct

e. none of the other specific choices are correct

60. Which of the following is a NOT way to regulate imports:

a. complicated customs procedures

b. government procurement policies

c. safety and manufacturing standards

d. all the other specific choices are ways to regulate imports

e. none of the other specific choices are ways to regulate imports

61. Which of the following is a way to regulate imports:

a. import licensing procedures

b. quotas

c. testing requirements

d. all the other specific choices are ways to regulate imports

e. none of the other specific choices are ways to regulate imports

62. Another word for tariff is:

a. fee

b. fine

c. duty

d. responsibility

e. custom

63. A tariff which imposes a fixed tax on each unit of a product is known as a(n):

a. fixed tariff

b. duty tariff

c. specific tariff

d. ad valorem tariff

e. percentage tariff

64. A tariff which imposes a fixed tax on each unit of a product is known as a(n):

a. fixed tariff

b. duty tariff

c. percentage tariff

d. ad valorem tariff

e. none of the other choices are correct

65. A tariff which imposes a tax as a percentage of the price of a product is known as a(n):

a. fixed tariff

b. duty tariff

c. specific tariff

d. ad valorem tariff

e. percentage tariff

66. A tariff which imposes a tax as a percentage of the price of a product is known as a:

a. fixed tariff

b. duty tariff

c. specific tariff

d. percentage tariff

e. none of the other choices are correct

67. Unlike an ad valorem tariff in international trade, the specific tariff is:

a. applied only to imports while the ad valorem tariff is applied only to exports

b. a fixed tax and the ad valorem tariff is set as a percentage of the product price

c. applied only to products produced in countries that are not members of the WTO

d. applied only to goods and the ad valorem is applied only to services

e. none of the other choices; the tariffs do not differ in use in international trade

68. Unlike an ad valorem tariff in international trade, the specific tariff is:

a. applied only to imports while the ad valorem tariff is applied only to exports

b. applied only to products produced in countries that are not members of the WTO

c. applied only to goods and the ad valorem is applied only to services

d. identical to ad valorem tariff, not different

e. none of the other choices

69. A specific tariff is:

a. applied only to exports

b. set as a percentage of the product price of an imported good

c. applied only to products produced in countries that are not members of the WTO

d. applied only to goods, not services

e. none of the other choices

70. A specific tariff is:

a. applied only to exports

b. set as a percentage of the product price of an imported good

c. applied only to products produced in countries that are not members of the WTO

d. a fixed tax amount applied to an import

e. none of the other choices

71. An ad valorem tariff is:

a. duty or tax levied by a government on an exported good

b. fixed tax or duty on each unit of the product

c. tax based on a percentage of the price of the product

d. applied only to such products as munitions, alcohol, and tobacco products

e. none of the other choices

72. An ad valorem tariff is:

a. duty or tax levied by a government on an exported good

b. flat tax applied to each unit of the product

c. a tax imposed by the WTO on category B and E goods

d. applied only to such products as weapons, alcohol, and tobacco products

e. none of the other choices

73. Business wanting to know the duty (tax) imposed by customs on their product should consult:

a. the Federal Register

b. the International Convention on the Sale of Goods

c. the National Brands Weekly

d. the tariff schedules

e. the Internal Revenue Code

74. Business wanting to know the duty (tax) imposed by customs on their product should consult:

a. the Federal Register

b. the International Convention on the Sale of Goods

c. the National Brands Weekly

d. the Internal Revenue Code

e. none of the other choices

75. The U.S. publishes the duty imposed by customs on products entering U.S. ports in the:

a. tariff schedules

b. tariff regulations

c. tariff rules

d. tariff postings

e. federal tariff listings

76. The U.S. publishes the duty imposed by customs on products entering U.S. ports in the:

a. federal tariff listings

b. tariff regulations

c. tariff rules

d. tariff postings

e. none of the other choices are correct

77. The U.S. uses a Harmonized Tariff Schedule that:

a. completed a 25-year formal governmental transfer from specific to ad valorem tariffs on all products

b. adopted the GATT tariff schedules set forth by the Community of Nations Accord signed in Paris in 1982

c. were developed by a group of countries to standardize the ways goods are classified by customs officials

worldwide

d. provide for specific exemptions from WTO tariff schedules

e. bring U.S. tariffs in line with tariffs imposed on goods imported into foreign trade zones and duty-free ports

78. The U.S. uses a Harmonized Tariff Schedule that:

a. completed a 25-year formal governmental transfer from specific to ad valorem tariffs on all products

b. adopted the GATT tariff schedules set forth by the Community of Nations Accord signed in Paris in 1982 c.

bring U.S. tariffs in line with tariffs imposed on goods imported into foreign trade zones and duty-free ports d.

provide for specific exemptions from WTO tariff schedules

e. none of the other choices

79. The U.S. standardizes the way in goods are classified by customs officials by using a(n):

a. harmonic tariff schedule

b. harmonized tariff schedule

c. universal tariff schedule

d. complete tariff schedule

e. standardized tariff schedule

80. The U.S. standardizes the way in goods are classified by customs officials by using a(n):

a. harmonic tariff schedule

b. standardized tariff schedule

c. universal tariff schedule

d. complete tariff schedule

e. none of the other choices are correct

81. In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the

planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

a. the case should be reevaluated in the Court of Appeals using the Skidmore standard

b. the case should be thrown out for lack of evidence

c. all rulings by Customs are equivalent to federal law so Mead had no case

d. Mead should pay a 2% tariff as a compromise

e. the change in classification was unjustified so Mead did not owe any tariffs

82. In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the

planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

a. the change in classification was unjustified so Mead did not owe any tariffs

b. the case should be thrown out for lack of evidence

c. all rulings by Customs are equivalent to federal law so Mead had no case

d. Mead should pay a 2% tariff as a compromise

e. none of the other choices are correct

83. Gables purchased used Mercedes from a German company. The cars were built for the German market and met

its safety and pollution requirements. Gables hoped to sell the cars in the U.S., and so shipped them to New York.

Upon reaching Customs, the cars will:

a. not be passed through Customs because Germany does not have most favored nation status with the U.S.

b. be passed through Customs because they are not products that would affect U.S. national security

c. not be allowed to pass because they are a major source of competition for U.S. automakers

d. not pass through Customs unless they meet all safety and pollution control for cars operated in the U.S.

e. not be allowed because they are not new cars

84. Gables purchased used Mercedes from a German company. The cars were built for the German market and met

its safety and pollution requirements. Gables hoped to sell the cars in the U.S., and so shipped them to New York.

Upon reaching Customs, the cars will:

a. not be passed through Customs because Germany does not have most favored nation status with the U.S.

b. be passed through Customs because they are not products that would affect U.S. national security

c. not be allowed to pass because they are a major source of competition for U.S. automakers

d. not be allowed because they are not new cars

e. none of the other choices

85. “Dumping” is the practice of:

a. importing goods that do not meet U.S. environmental standards

b. importing goods that do not meet U.S. safety standards

c. foreign companies selling goods at lower prices in the U.S. market than in their home markets

d. foreign companies selling goods at higher prices in the U.S. market than in their home markets

e. U.S. companies outsourcing undesirable jobs to other countries

86. “Dumping” is the practice of:

a. importing goods that do not meet U.S. environmental standards

b. importing goods that do not meet U.S. safety standards

c. U.S. companies outsourcing undesirable jobs to other countries

d. foreign companies selling goods at higher prices in the U.S. market than in their home markets

e. none of the other choices are correct

87. Dumping is:

a. the sale of foreign refuse in U.S. markets

b. the export of U.S. goods at market rates

c. charging a lower price in foreign than in the home market

d. receiving unfair subsidies for foreign governments

e. charging foreign consumers a higher price than in the home market

88. Dumping is:

a. the sale of foreign refuse in U.S. markets

b. the export of U.S. goods at market rates

c. charging foreign consumers a higher price than in the home market

d. receiving unfair subsidies for foreign governments

e. none of the other choices

89. The U.S. bans a number of products from entering the country. These products include:

a. narcotics

b. foreign manufactured fighter aircraft

c. foreign manufactured tanks

d. rice from Vietnam

e. all of the other choices

90. Which of the following items are banned from being imported into the U.S.:

a. products from endangered species

b. narcotics

c. items that do not meet U.S. pollution regulations

d. all of the specific choices are banned

e. none of the specific choices are banned

91. To respond to claims of dumping in U.S. markets, or foreign government subsidies for production, the International

Trade Commission (ITC) may:

a. increase import tariffs on products that are being “dumped” in Third World markets

b. exempt products from customs duties if the country of origin is attempting to decrease pollution

c. allow “experimental” imports to enter duty–free until a market in the U.S. has been established

d. impose a tariff on goods coming into the U.S. to eliminate the value of the subsidy

e. impose import restrictions at the sole discretion of the ITC chairman

92. To respond to claims of dumping in U.S. markets, or foreign government subsidies, the International Trade

Commission (ITC) may:

a. increase import tariffs on products that are being “dumped” in Third World markets

b. exempt products from customs duties if the country of origin is attempting to decrease pollution

c. allow “experimental” imports to enter duty–free until a market in the U.S. has been established

d. impose import restrictions at the sole discretion of the ITC chairman

e. none of the other choices

93. If an anti-dumping order is issued against a good, the manufacturer of that good:

a. must remove the product from the U.S. market

b. reimburse affected U.S. manufacturers directly

c. pay an antidumping duty

d. must remove the product from the U.S. market or reimburse affected U.S. manufacturers directly

e. must remove the product from the U.S. market or reimburse affected U.S. manufacturers directly and pay

an antidumping duty

94. Duty orders generally remain in place until:

a. the importer pays a fine

b. the importer can show three consecutive years of “fair market value” sales

c. the importer can show one year of “fair market value” sales

d. the price of the good increases

e. the cost of production of the good decreases

95. Duty orders generally remain in place until:

a. the importer pays a fine

b. the cost of production of the good decreases

c. the importer can show one year of “fair market value” sales

d. the price of the good increases

e. none of the other choices are correct

96. When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:

a. has the power to force the nation to change the restriction

b. does not have the power to force the nation to change the restriction

c. can fine the nation

d. can block all trade with the nation

e. none of the other choices are correct

97. RoundTire Bicycle manufactures bicycles. It buys parts from foreign companies, pays for them overseas, and ships

them to Houston where U.S. duties are paid. The parts are then shipped to a plant in Texas for assembly and sale.

The company is considering alternatives to reduce costs. Which of the following is most likely to be successful:

a. locate the plant in a foreign-trade zone in Texas and have the parts shipped there, with duties assessed on

the assembled bicycles when they leave the foreign-trade zone

b. appeal to the Department of Commerce under the Export Administration Act

c. apply to the FTC to be designated an international company under the Export Trading Company Act

d. seek an import restrictions exemption from the U.S. Customs Service as a company aggrieved by foreign

competition

e. none of these would likely be a successful strategy

98. A foreign trade zone is a(n):

a. area where businesses can import goods without paying tariffs

b. area where foreign businesses can buy land

c. area where foreign businesses only have to pay 50% of the normal tariffs

d. area where only foreign businesses can trade

e. area where foreign businesses do not have to pay any federal taxes

99. A foreign trade zone is a(n):

a. area where foreign businesses do not have to pay any federal taxes

b. area where foreign businesses can buy land

c. area where foreign businesses only have to pay 50% of the normal tariffs

d. area where only foreign businesses can trade

e. none of the other choices are correct

100. Goods in a foreign trade zone may be:

a. processed

b. assembled

c. ware-housed

d. all of the other specific choices are correct

e. none of the other specific choices are correct

101. A place of entry in a country that does not assess duties or tariffs on products is called:

a. foreign trade zone

b. countervailing duty zone

c. duty-free port

d. trade-enhancement zone

e. none of the other choices

102. A trade deficit occurs when:

a. the value of imports exceeds the value of exports

b. the value of exports exceeds the value of imports

c. the value of imports equals the value of exports

d. other countries are dumping in a country’s home market

e. a country is dumping goods in another country

103. A trade deficit occurs when:

a. a country is dumping goods in another country

b. the value of exports exceeds the value of imports

c. the value of imports equals the value of exports

d. other countries are dumping in a country’s home market

e. none of the other choices are correct

104. When the value of a country’s imports exceeds the value of its exports the country is said to have a:

a. trade surplus

b. trade deficit

c. lack of trade

d. failure of trade

e. trade loss

105. When the value of a country’s imports exceeds the value of its exports the country is said to have a:

a. trade surplus

b. trade loss

c. lack of trade

d. failure of trade

e. none of the other choices are correct

106. The major export-promotion agency in the U.S. is:

a. the Commerce Department

b. the State Department

c. the U.S. Export Administration

d. the U.S. Export Control Agency

e. the International Court of Trade

107. The major export-promotion agency in the U.S. is:

a. the International Court of Trade

b. the State Department

c. the U.S. Export Administration

d. the U.S. Export Control Agency

e. none of the other choices

108. The Commercial Consulates of the Foreign Commercial Service do which of the following:

a. supply U.S. product information

b. arrange business meetings with local firms

c. accompany U.S. company representatives to meetings

d. gather local market information

e. all of the other specific choices are correct

109. The overseas offices of the Foreign Commercial Service are known as:

a. Commercial Consulates

b. Commercial Centers

c. Commercial Advisers

d. U.S. Business Centers

e. U.S. Business Consulates

110. The overseas offices of the Foreign Commercial Service are known as:

a. U.S. Business Consulates

b. Commercial Centers

c. Commercial Advisers

d. U.S. Business Centers

e. none of the other choices are correct

111. The Export Administration Act:

a. regulates the export of certain raw materials in short supply, good that might jeopardize national security, and

goods whose sale would conflict with national policy

b. grants exporters limited exemptions from U.S. antitrust laws to develop certain business associations

c. allows certain associations dealing with sensitive services or technologies to qualify for export registration

d. was a failure at promoting international trade and was replaced by the Export Trading Act of 2002

e. none of the other choices are correct

112. The Export Administration Act:

a. allows Customs to set tariffs based on “prevailing world rates”

b. grants exporters limited exemptions from U.S. antitrust laws to develop certain business associations

c. allows certain associations dealing with sensitive services or technologies to qualify for export registration

d. despite its effectiveness in promoting international trade, it was repealed by the Export Trading Act of 2002

e. none of the other choices

113. Certain export regulations prohibit or restrict the sale of domestic products in overseas markets. The principle

rationale for these restrictions is:

a. there is too large of a supply of the restricted products on the world market

b. the restricted product is vital to national defense

c. that the government wishes to keep the price of the restricted product artificially low

d. a cartel has been formed to limit the supply of the restricted product on the world market

e. none of the other choices

114. Which of the following would be a reason that the U.S. government would restrict the export of a good: