BUSI 3250 UPDATED EXAM SCRIPT QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Reasons to restrict trade to Protect an Infant or Dying Industry - ✔✔-Give infant
industries a chance to grow and build comparative advantage
-Without this, lower-cost imports will underprice in local marke
-Slow down impact of dying industry—move capital into other sectors
✔✔US first pass a law against foreign goods dumping in 1916. No law against US
companies dumping abroad though - ✔✔Example of retailation
✔✔Dumping is defined in 3 ways - ✔✔- selling a product abroad for less than cost of
production
- selling product abroad for less than price in home market
- selling product abroad for less than price to third-party countries
✔✔Predatory dumping - ✔✔setting price below another country's to put them out of
business/competition
✔✔Social dumping - ✔✔when producers have lower wage rates, lower social costs
(unemployment taxes and env. regulations) poor worker benefits, poor working
conditions
✔✔Environmental dumping - ✔✔when an exporter can sell at lower costs due to the
country's loose environmental standards
✔✔Taxes on imported goods for the purpose of raising their price to reduce competition
for local producers or stimulate local production - ✔✔Tariffs
✔✔An import duty levied as a percentage of the invoice value of imported goods -
✔✔Ad Valorem Duty
✔✔Nontariff barriers are - ✔✔all forms of discrimination against imports other than
import duties
✔✔Quantitative Barriers - ✔✔(Quotas) Numerical limits for specific goods imported
during specific period
✔✔tariff-rate - ✔✔an amount allowed duty free and above and beyond requires tariff
payment
✔✔Absolute quota - ✔✔a specified amount
, ✔✔Voluntary Export Restraints (VERs) - ✔✔are export quotas imposed by exporting
nation; typically through an agreement with the other country
✔✔Orderly marketing arrangements (VERs) are _____________________ - ✔✔formal
agreements
✔✔Nonquantitative Nontariff Barriers - ✔✔-Direct government participation in trade (like
a subsidy or required local content)
-Customs and other administrative procedures ("let africa trade with africa")
-government and private standards
✔✔Which kind of tariff do experts say are the most significant/impactful? - ✔✔nontariff
barriers
✔✔The civil law approach is based on codification, a systematic collection of laws
designed to cover all areas of concern, thus _____________ - ✔✔bureaucratic
✔✔What kind of law is derived from ancient Roman law and influenced by religious
law? - ✔✔Civil Law
✔✔What type of law is the most widespread system globally and considered the "less
adversarial" law? - ✔✔Civil Law
✔✔Examples of places that use civil law - ✔✔Louisiana (only one in US), Spain, Italy,
Belgium
✔✔What is the difference regarding civil law vs. other systems? - ✔✔There is no need
for a jury, the judge issues the decision
✔✔Common law is - ✔✔interpretive
✔✔Law that relies on previous court decisions and interprets statutes and regulations -
✔✔common law
✔✔Relationship between judicial decisions and statutes can be complex in common law
due to what? - ✔✔precedents
✔✔Is common law more or less adversarial than civil law systems? - ✔✔more
adversarial, but more flexible (uses a jury)
✔✔Which system of law has more need for a jury? - ✔✔Common law has more need
for a jury
ANSWERS GUARANTEE A+
✔✔Reasons to restrict trade to Protect an Infant or Dying Industry - ✔✔-Give infant
industries a chance to grow and build comparative advantage
-Without this, lower-cost imports will underprice in local marke
-Slow down impact of dying industry—move capital into other sectors
✔✔US first pass a law against foreign goods dumping in 1916. No law against US
companies dumping abroad though - ✔✔Example of retailation
✔✔Dumping is defined in 3 ways - ✔✔- selling a product abroad for less than cost of
production
- selling product abroad for less than price in home market
- selling product abroad for less than price to third-party countries
✔✔Predatory dumping - ✔✔setting price below another country's to put them out of
business/competition
✔✔Social dumping - ✔✔when producers have lower wage rates, lower social costs
(unemployment taxes and env. regulations) poor worker benefits, poor working
conditions
✔✔Environmental dumping - ✔✔when an exporter can sell at lower costs due to the
country's loose environmental standards
✔✔Taxes on imported goods for the purpose of raising their price to reduce competition
for local producers or stimulate local production - ✔✔Tariffs
✔✔An import duty levied as a percentage of the invoice value of imported goods -
✔✔Ad Valorem Duty
✔✔Nontariff barriers are - ✔✔all forms of discrimination against imports other than
import duties
✔✔Quantitative Barriers - ✔✔(Quotas) Numerical limits for specific goods imported
during specific period
✔✔tariff-rate - ✔✔an amount allowed duty free and above and beyond requires tariff
payment
✔✔Absolute quota - ✔✔a specified amount
, ✔✔Voluntary Export Restraints (VERs) - ✔✔are export quotas imposed by exporting
nation; typically through an agreement with the other country
✔✔Orderly marketing arrangements (VERs) are _____________________ - ✔✔formal
agreements
✔✔Nonquantitative Nontariff Barriers - ✔✔-Direct government participation in trade (like
a subsidy or required local content)
-Customs and other administrative procedures ("let africa trade with africa")
-government and private standards
✔✔Which kind of tariff do experts say are the most significant/impactful? - ✔✔nontariff
barriers
✔✔The civil law approach is based on codification, a systematic collection of laws
designed to cover all areas of concern, thus _____________ - ✔✔bureaucratic
✔✔What kind of law is derived from ancient Roman law and influenced by religious
law? - ✔✔Civil Law
✔✔What type of law is the most widespread system globally and considered the "less
adversarial" law? - ✔✔Civil Law
✔✔Examples of places that use civil law - ✔✔Louisiana (only one in US), Spain, Italy,
Belgium
✔✔What is the difference regarding civil law vs. other systems? - ✔✔There is no need
for a jury, the judge issues the decision
✔✔Common law is - ✔✔interpretive
✔✔Law that relies on previous court decisions and interprets statutes and regulations -
✔✔common law
✔✔Relationship between judicial decisions and statutes can be complex in common law
due to what? - ✔✔precedents
✔✔Is common law more or less adversarial than civil law systems? - ✔✔more
adversarial, but more flexible (uses a jury)
✔✔Which system of law has more need for a jury? - ✔✔Common law has more need
for a jury
