Chapter 3 5 Responding to pressure from political lobbyists representing the steel industry, the U.S. government levies a tax on steel products imported from Europe

289. (p. 76) The keiretsu tradition in Japan serves as a:

A. protective tariff.

LG: 5

LL: 2

Nickels – Chapter 03 #289

290. (p. 75) Responding to pressure from political lobbyists representing the steel industry, the U.S. government

levies a tax on steel products imported from Europe. This is an example of a(n):

D. embargo.

291. (p. 75–76) Labor unions and businesses in the heavy equipment industry have asked the U.S. Congress to place

a tax on imported equipment in order to make it more expensive. They hope that this will allow U.S. producers

to be more competitive. The U.S. heavy equipment industry appears to be seeking a(n):

A. injunction.

292. (p. 76) The emerging nation of Lancerland has enacted a tariff on imported petroleum in order to raise money

for their new government. This trade restriction is an example of a(n) ________ tariff.

D. fixed

293. (p. 76) Mortavia is a small nation that has followed protectionist policies for many years. Which of the

following would be an example of a nontariff barrier established by Mortavia?

A. Establishment of a tax levied on imported goods so that foreign products are more expensive than competing

domestic goods.

294. (p. 78) A major concern voiced by U.S. critics of the North American Free Trade Agreement (NAFTA) is

that it would result in:

D. increased illegal immigration from Mexico.

295. (p. 78) One objective of NAFTA is to:

A. increase trade barriers between the countries involved.

296. (p. 78) Which of the following is an objective of the North American Free Trade Agreement (NAFTA)?

D. Provide protection for illegal immigrants.

D. nonexistent.

298. (p. 80) For firms interested in global markets, investments in China are considered to be:

299. (p. 80) Many business experts contend that __________ will likely be the growth market of the future.

D. the Middle East

300. (p. 81) U.S. companies have shifted focus from __________ to _________

D. providing less worker benefits; maximizing costs.

301. (p. 81) The “second wave” of offshore outsourcing refers to:

D. moving manufacturing jobs offshore.

302. (p. 81) __________ is the purchase of goods and services from foreign sources rather than producing them

within the United States.

A. Offshore procurement

303. (p. 80) China has shifted its economy into high gear since:

D. changing its economic philosophy from free markets to communism.

304. (p. 80–81) Russia’s persistent political and social problems have caused that country to be:

A. ignored by global traders.

305. (p. 81; figure 3.9) Which of the following is an advantage of offshore outsourcing?

D. Communication between the company and its customers improves.

306. (p. 81; figure 3.9) Which of the following is an advantage of offshore outsourcing?

D. Communication between the company and its suppliers improves.

307. (p. 80) Which of the following is a valid criticism when potential investors look at China?

A. Investment in China is too risky and not worth the effort.

308. (p. 82) Which of the following statements best describes the possibilities for small businesses in global

markets?

A. Small businesses have little chance of competing against giant multinational corporations in global markets.

309. (p. 79) Which of the following best describes the impact of the Internet on global market transactions?

D. Internet chat rooms allow for an increased use of bartering as a method of resolving international payment

problems.

310. Explain the difference between comparative and absolute advantage in global markets.

311. Describe four different strategies for reaching global markets.

312. Explain how socio-cultural differences can create trade difficulties in world markets.

313. Define offshore outsourcing and explain its pros and cons.

314. (p. 67) Initially, Rhett believed he should maintain his production facilities within the United States and

simply export his designer eyeglass frames to foreign sellers. However, he lacked expertise in exporting. Rhett

decided to see if the federal government could provide any help by contacting a(n):

A. World Trade Center.

315. (p. 71) Although he is confident of success, Rhett is concerned that social, cultural and economic differences

in other nations may create some problems. He believes he should adapt his approach to these differences rather

than trying to force the “American way” on foreign consumers. Rhett’s attitude suggests that he does not have

a(n) ___________ approach to business.

D. countercultural

316. (p. 73) Rhett has heard predictions that the value of the U.S. dollar is likely to decline substantially over the

next six months. This should:

A. hurt his overseas efforts since his prices will be very high.

317. (p. 66) Rhett spoke with a German company that said it might be interested in producing his products in their

market. They would pay him a royalty for what they sold and would bear all the start-up expenses of this effort.

This German company is proposing a:

A. subsidiary agreement.

318. (p. 76) 5 million pairs of eyeglasses to the Japanese market during a given year. The Japanese have imposed

a(n):

A. revenue tariff.

c3 Summary