LSUS MBA 776 DARRAT EXAM 1 SCRIPT
COMPLETE ANSWERS GRADED A+
◉ tariff and non-tariff barriers
Answer: •Until recently, use has been reduced in recent years
•Election of nationalistic leaders threatens this effort
•Some countries attempt to control trade for their own advantage
•As competition increases, so does tendency toward
protectionism
◉ Global trade benefits all
Answer: •Provides more business opportunities for marketers
•Provides wider selection of goods and services for consumers
◉ balance of payments statement
Answer: Record of all financial transactions with other countries.
•Credits and debits must offset each other.
•Double-entry bookkeeping system.
Three main accounts.
•Current account.
•Of primary interest to international business.
•Capital account.
•Reserves account.
,◉ Balance of payments in US
Answer: High merchandise trade deficit yields an imbalance
- value of US currency low= less purchasing power, less demand
for imports
- US products cheap for foreign buyers= higher imports
◉ Barriers for protection against unwanted foreign investments
and imports
Answer: - tariffs
- quotas
- Exchange barriers
- Psychological barriers
◉ Reasons to maintain government restrictions
Answer: 1.Protection of an infant industry
2.Protection of the home market
3.Need to keep money at home
4.Encouragement of capital accumulation
5.Maintenance of the standard of living and real wages
6.Conservation of natural resources
7.Industrialization of a low-wage nation
8.Maintenance of employment and reduction of unemployment
, 9.National defense
10.Enhancement of business size
11.Retaliation and bargaining
12.Corrupt goals of despots and their ilk
◉ How can Protectionism be harmful
Answer: Contributes to country's industrial inefficiency.
Detracts from nation's adjustment to world situation.
Higher prices for consumers.
•Less likely to purchase, which in turn hurts the economy.
◉ How is free-trade typically beneficial
Answer: •More people willing to purchase.
•Higher purchasing power for the average consumer.
•Agreements like NAFTA (now USMCA) result in higher income
levels.
•More job opportunities.
•Economic effects of COVID-19 pandemic reduced consumers'
spending power.
◉ What are the reasons for trade barriers
Answer: •Develop new domestic industries.
•Protect current domestic industries.
COMPLETE ANSWERS GRADED A+
◉ tariff and non-tariff barriers
Answer: •Until recently, use has been reduced in recent years
•Election of nationalistic leaders threatens this effort
•Some countries attempt to control trade for their own advantage
•As competition increases, so does tendency toward
protectionism
◉ Global trade benefits all
Answer: •Provides more business opportunities for marketers
•Provides wider selection of goods and services for consumers
◉ balance of payments statement
Answer: Record of all financial transactions with other countries.
•Credits and debits must offset each other.
•Double-entry bookkeeping system.
Three main accounts.
•Current account.
•Of primary interest to international business.
•Capital account.
•Reserves account.
,◉ Balance of payments in US
Answer: High merchandise trade deficit yields an imbalance
- value of US currency low= less purchasing power, less demand
for imports
- US products cheap for foreign buyers= higher imports
◉ Barriers for protection against unwanted foreign investments
and imports
Answer: - tariffs
- quotas
- Exchange barriers
- Psychological barriers
◉ Reasons to maintain government restrictions
Answer: 1.Protection of an infant industry
2.Protection of the home market
3.Need to keep money at home
4.Encouragement of capital accumulation
5.Maintenance of the standard of living and real wages
6.Conservation of natural resources
7.Industrialization of a low-wage nation
8.Maintenance of employment and reduction of unemployment
, 9.National defense
10.Enhancement of business size
11.Retaliation and bargaining
12.Corrupt goals of despots and their ilk
◉ How can Protectionism be harmful
Answer: Contributes to country's industrial inefficiency.
Detracts from nation's adjustment to world situation.
Higher prices for consumers.
•Less likely to purchase, which in turn hurts the economy.
◉ How is free-trade typically beneficial
Answer: •More people willing to purchase.
•Higher purchasing power for the average consumer.
•Agreements like NAFTA (now USMCA) result in higher income
levels.
•More job opportunities.
•Economic effects of COVID-19 pandemic reduced consumers'
spending power.
◉ What are the reasons for trade barriers
Answer: •Develop new domestic industries.
•Protect current domestic industries.
