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BUSI 3250 AUBURN EXAM 2 2025
QUESTIONS AND ANSWERS.
Quantitative Barriers -correct answer-(Quotas) Numerical limits for specific goods
imported during specific period
tariff-rate -correct answer-an amount allowed duty free and above and beyond
requires tariff payment
Absolute quota -correct answer-a specified amount
Voluntary Export Restraints (VERs) -correct answer-are export quotas imposed by
exporting nation; typically through an agreement with the other country
Nationalization is also called -correct answer-Expropriation
the taking of private property by a government to make it public -correct answer-
Nationalization
US Government took over ownership of what company during crisis of 2008-
2009? -correct answer-GM
the selling of government owned property to the private sector to gain more
efficiency in business operations, to raise money or to change in political
climate/philosophy -correct answer-Privatization (why governments sell
businesses)
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Protect the economic activities of citizens. Unfair competition is minimized
through -correct answer-national laws, negotiations between governments, efforts
of institutions like World Bank
unlawful acts of violence committed for a wide variety of reasons -correct answer-
terrorism
What provides a source of operating funds for terrorists? -correct answer-
Kidnapping
hijacking and kidnapping on the seas -correct answer-Piracy
any illegal Internet-mediated activity that takes place in electronic networks -
correct answer-Cybercrime
North Korea tries to hack Pfizer for COVID data is an example of? -correct
answer-Cybercrime
What are four areas of increasing concern to governments? -correct answer-
protection from terrorism, piracy, kidnapping, cybercrime and other threats
Country Risk Assessment -correct answer-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
6 reasons for restricting trade -correct answer-Provide for National Defense,
Impose Sanctions, Protect an Infant or Dying Industry, Protect Domestic Jobs,
Ensure Fair Competition, Retaliate
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While trade is promoted - in 1982 ag tariffs averaged _______% - in comparison
manufactured good tariffs=____% -correct answer-62%; 4%
Reasons to restrict trade to provide for national defense -correct answer--Certain
industries need protection from imports because they are vital to security
-economists say this is a weak argument
Reasons to restrict trade to impose sanctions -correct answer--Inflict economic
damage, punish, or encourage change of behavior
-Seldom achieve their goal
-Produce collateral economic damage
Reasons to restrict trade to Protect an Infant or Dying Industry -correct answer--
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 -correct answer-Example of retailation
Dumping is defined in 3 ways -correct answer-- 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 -correct answer-setting price below another country's to put
them out of business/competition
BUSI 3250 AUBURN EXAM 2 2025
QUESTIONS AND ANSWERS.
Quantitative Barriers -correct answer-(Quotas) Numerical limits for specific goods
imported during specific period
tariff-rate -correct answer-an amount allowed duty free and above and beyond
requires tariff payment
Absolute quota -correct answer-a specified amount
Voluntary Export Restraints (VERs) -correct answer-are export quotas imposed by
exporting nation; typically through an agreement with the other country
Nationalization is also called -correct answer-Expropriation
the taking of private property by a government to make it public -correct answer-
Nationalization
US Government took over ownership of what company during crisis of 2008-
2009? -correct answer-GM
the selling of government owned property to the private sector to gain more
efficiency in business operations, to raise money or to change in political
climate/philosophy -correct answer-Privatization (why governments sell
businesses)
, Page |2
Protect the economic activities of citizens. Unfair competition is minimized
through -correct answer-national laws, negotiations between governments, efforts
of institutions like World Bank
unlawful acts of violence committed for a wide variety of reasons -correct answer-
terrorism
What provides a source of operating funds for terrorists? -correct answer-
Kidnapping
hijacking and kidnapping on the seas -correct answer-Piracy
any illegal Internet-mediated activity that takes place in electronic networks -
correct answer-Cybercrime
North Korea tries to hack Pfizer for COVID data is an example of? -correct
answer-Cybercrime
What are four areas of increasing concern to governments? -correct answer-
protection from terrorism, piracy, kidnapping, cybercrime and other threats
Country Risk Assessment -correct answer-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
6 reasons for restricting trade -correct answer-Provide for National Defense,
Impose Sanctions, Protect an Infant or Dying Industry, Protect Domestic Jobs,
Ensure Fair Competition, Retaliate
, Page |3
While trade is promoted - in 1982 ag tariffs averaged _______% - in comparison
manufactured good tariffs=____% -correct answer-62%; 4%
Reasons to restrict trade to provide for national defense -correct answer--Certain
industries need protection from imports because they are vital to security
-economists say this is a weak argument
Reasons to restrict trade to impose sanctions -correct answer--Inflict economic
damage, punish, or encourage change of behavior
-Seldom achieve their goal
-Produce collateral economic damage
Reasons to restrict trade to Protect an Infant or Dying Industry -correct answer--
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 -correct answer-Example of retailation
Dumping is defined in 3 ways -correct answer-- 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 -correct answer-setting price below another country's to put
them out of business/competition
