University of North Carolina, Greensboro

MGT 301

Chapter Six

1)Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, and product price supports are all types of antidumping duties.

2. Scenario: Badland Joins the World

Badland, a former totalitarian economy and pariah state, is taking steps toward a free market economy. The government wants to encourage trade but also wants to find a balance where local businesses and industries are not destroyed.

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

1. 2. If Badland wants to restrict unwanted trade, which of the following would be LEAST appropriate?

1. 3. If Badland creates a hybrid form of trade restriction-a lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota-this would be an example of which of the following?

3. Scenario: Excelsior's Limited

Excelsior's Limited, a maker of health and beauty aids, is expanding its presence in several countries around the world. Excelsior's president has been surprised at some of the responses the company has received from other countries.

1. 1. When Excelsior's Limited tried to convert its earnings from one country, the government stipulated that the company had to exchange its currency at a very unfavorable rate. This is an example of a(n)      .

1. 2. Excelsior's Limited tried to sell its product in Canada, but it was told the product must be at least 40 percent locally made. This is an example of a(n)            .