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The College at Brockport BUS 345 Quiz 3: 1)Tariff quotas are used extensively in the trade of        

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The College at Brockport

BUS 345

Quiz 3:

1)Tariff quotas are used extensively in the trade of         .

a)            Manufactured goods

b)            Services

c)            Textiles

d)            Agricultural products

 

2)            Which of the following statements is Not true?

a)            Trade in services makes up about 20 percent of total world trade.

b)            Trade in services tends to be more important for emerging markets

c)            The United States is a top exporter of services in the world

d)            Trade in services is growing for many nations

 

3)            Most of the world merchandise trade is comprised of trade in    .

a)            Natural resources

b)            Services

c)            manufactured goods

d)            Knowledge-based goods

 

4)            When a country has a weak currency relative to other nations, imports are         

relative to domestic products.

a)            More expensive

b)            Equal in price

 

5)            The trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports is called            .

a)            Absolute advantage

b)            Mercantilism

c)            Comparative advantage

d)            Factor proportions theory

 

6)            Who proposed the theory of absolute advantage?

a)            David Ricardo

b)            Adam Smith

c)            Bertil Ohlin

d)            Raymond Venon

e)            Michael Porter

7)            The theory of absolute advantage measures a nation’s wealth by determining the

                .

a)            Gold it has on reserve

b)            Silver it has on reserve

c)            Money it has on reserve

d)            Living standard of its people

 

 

8)            When there are gains to be had by both countries party to an exchange, international trade is considered a                 

a)            Positive sum game

b)            Zero sum game

c)            Negative sum game

d)            None of the above

 

9)            When a country is not able to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good, it is said to have a(n)

                .

a)            Absolute advantage

b)            Resource problem

c)            First-mover-advantage

d)            Comparative advantage

 

10)          Factor proportions theory was developed by      .

a)            Smith and Ricardo

b)            Ricardo and Ohlin

c)            Hecksher and Ohlin

d)            Hecksher and Smith

 

11)          The Leontief paradox describes evidence             .

a)            That U.S. exports require more labor-intensive production than its imports

b)            In support of factor proportions theory

c)            The U.S. exports require more capital0intensive production than its imports

d)            That the assumptions of new trade theory are invalid

 

12)          The international product life cycle theory was put forth for which type of goods?

a)            Service goods

b)            Knowledge based goods

c)            Manufactured goods

d)            Natural resources

 

13)          When a product’s components are made in the country that can produce them at a high level of productivity and assemble them in another country where productive in assembly is high, it resembles the theory of              .

a)            Comparative advantage

b)            Absolute advantage

c)            International product life cycle

d)            Factor proportions

 

14)          National competitive advantage theory states that a nation’s competitiveness in an industry depends on                .

 

a)            The capacity of the industry to innovate and upgrade

b)            The level of government subsidy available

c)            Obtaining a first-mover advantage

d)            Practicing neo-mercantilism

 

15)          The Porter diamond consists of all the following EXCEPT                .

a)            Factor conditions

b)            Demand conditions

c)            Supply conditions

d)            Firm strategy, structure, and rivalry

 

16)          Products designated as dual use require               before export can take place.

a)            Multi language translation documents

b)            Better consumer use instructions

c)            Special government approval

d)            World Trade Organization clearance

 

17)          The        argument says that a country’s emerging industries need protection from international competition during their development.

a)            National security

b)            Infant industry

c)            Strategic trade policy

d)            GATT treaty

 

18)          Which of these is the main cultural motive behind government intervention in trade?

a)            Promote a strategic trade policy

b)            Protect jobs

c)            Protect national identity

d)            Protect young industries from competition

 

19)          All of the following are method of restricting trade EXCEPT          .

a)            Tariff

b)            Quota

c)            Local content requirements

d)            Subsidy

 

20)          Which of these adds to the cost of an imported product by levying an additional tax upon it?

a)            Tariffs

b)            Quotas

c)            Local content requirements

d)            Embargoes

 

21)          A(n)       tariff is levied as a percentage of the stated price of an imported product.

 

a)            Specific

b)            Compound

c)            Ad valorem

d)            Specialized

 

22)          Which of the following is NOT a reason why countries impose export quotas?

a)            Maintain an adequate supply of a product in the home market

b)            Force the companies of other nations to compete against one another

c)            Restrict the world supply of a product and thereby increase its price

d)            All of the above

 

23)          All of the following are true of quotas EXCEPT    .

a)            They may be used to protect domestic producers by placing a limit on the amount of goods allowed to enter the country

b)            They help domestic producers maintain their market shares and prices

c)            Domestic producers may in because their market is protected

d)            Prices of intermediate goods always decrease

 

24)          Countries might impose a(n)      in response to the threat of an import quota or total ban on a product by an important nation.

a)            Embargo

b)            Tariff-quota restraint

c)            Voluntary tariff

d)            Voluntary export restraint

 

25)          A lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota is called a(n)           .

a)            Embargo

b)            Tariff-quota

c)            Tariff

d)            Voluntary export restraint

 

26)          Suppose imports entering a nation under a quota limit of 8,500 tons of rice are charged a tariff of 15 percent, but subsequent imports of rice that do not make it under this quota limit are charged a tariff of 68 percent. This is an example of a(n) .

a              Import subsidy

b             Arbitrary will of the government c            GATT-enforced regulation

d             Tariff-quota

 

27)          A ban on trade in one of more products with a particularly country is called a(n) .

a)            Embargo

b)            Tariff-quota

c)            Tariff

 

d)            Voluntary export restraint

 

28)          Which of the following is NOT a true statement about embargoes?

a)            An embargo may be placed on one or a few goods or may completely ban trade in all goods.

b)            An embargo is the most restrictive nontariff barrier available

c)            An embargo is usually employed for political reasons

d)            Embargoes are used frequently today because they are easy to implement

 

29)          If a country stipulates that a specified amount of a good or service be supplied by producers in the domestic market, we call this restriction device a(n)            .

a)            Administrative delay

b)            Currency control

c)            Local content requirement

d)            Voluntary export restraint

 

30)          Purposely understaffing customs to cause time delays, requiring special licenses that take a long time to obtain, and requiring air carriers to land at inconvenient airports are all examples of        .

a)            Time delays

b)            Local bureaucracy

c)            Administrative delays

d)            Global strategy failures