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A) fixed sum charged for a specified number of units of the product.
B) stated percentage of the invoice of the product.
C) duty established for a given, articulated reason.
D) rate charged in excess of a compound duty.
89) Tariffs often are set to
A) encourage local input.
B) decrease the import costs.
C) stimulate imports.
D) decrease consumer costs.
90) Some nontariff barriers are difficult to discourage because
A) they consist of government subsidies and standards.
B) their development has been supported by local politicians.
C) they build on nationalism and patriotism.
D) they are established by consumers.
91) 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?
A) dumping
B) VER
C) quota
D) sanctions
92) Agricultural trade restrictions are typically found
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A) in most countries.
B) only in centralized economies.
C) only in developing economies.
D) exclusively in free market economies.
93) Japan restricts the number of automobiles its manufacturers can export to the United
States each year. What is this an example of?
A) voluntary export restraint
B) ad valorem tariff
C) absolute quota
D) sanction
94) Government motivation for restricting trade includes
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.
95) Some countries impose both an ad valorem duty and a specific duty on a single import.
What type of duty are these countries using?
A) compound
B) duplex
C) secondary
D) elite
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FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
96) When governments ________ companies, they take them from private to public
ownership.
97) ________ is characteristic of a country that cannot maintain itself in power and makes
sudden, unpredictable policy changes.
98) With regard to cybercrime, ________ technology is now the most vulnerable area.
99) One risk to business is ________, unlawful acts of violence to achieve a variety of
objectives, including revolution and revenge.
100) A government that projects ________ has political policies that are predictable and are
not subject to sudden, radical changes.
101) ________ is hijacking that includes kidnapping on the seas.
102) Hacking, computer espionage, and domain-related offenses are examples of ________.
103) ________ is an assessment of a country’s economic situation and politics to determine
how much risk to employees, property, and investment exists for the firm doing business there.
104) The ________ argument for trade restrictions suggests that certain industries need
protection from imports because these industries are vital to security and must be kept operating,
even when they are not competitive.
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105) Some argue that infant or ________ firms need protection from imports.
106) The ________ argument suggests duties that would bring imported goods up to the price
level of goods in the domestic market.
107) Selling a product abroad for less than the cost of production, less than the price in the
home market, or less than the price to third-party countries constitutes ________.
108) ________ 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.
109) ________ are often imposed to offset the effects of a subsidy.
110) A percentage of the invoice value of the product is known as a(n) ________ duty.
111) A ________ duty is a fixed sum charged on a physical unit of an imported good.
112) A ________ duty is a combination of specific and ad valorem duties.
113) Quotas are a form of ________ barrier that sets limits on specific kinds of goods.
114) ________ are export limits imposed by the exporting nation, rather than imposed by the
importing nation.
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115) U.S. restriction on the origin of food used in the school lunch program is an example of a
________ NTB.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
116) Compare and contrast nationalization versus privatization.
117) Describe a country risk assessment and explain how the types of information a firm needs
can vary and where firms can find the information they need to assess a country.
118) Describe arguments for restricting trade.
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Answer Key
Test name: Module 5
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