ITB chapter 3 Exam with Accurate
Solutions
- ANS-Most tariffs are placed on imports
- import quota
- embargo
- Foreign-exchange control
- Currency devaluation - ANS-4 examples of nontariff barriers
- national security/defense argument
- equalize a nation's balance of payments
- protects weak industries
- to protect the health of citizens
- retaliation against a country
- jobs and income arguments - ANS-Reasons for trade restrictions
1. Canada and western Europe
2. Mexico and Latin America
3. Japan
4. Emerging Europe
5. Commonwealth of Independent States - ANS-America's export customers
1. Higher prices for consumers
2. Restriction of consumers' choices
3. Misallocation of international resources
4. Loss of jobs - ANS-Reasons against trade restrictions
a contractual agreement in which one firm permits another to produce and market its
product and use its brand name in return for a royalty or other compensation. - ANS-
Licensing
a country's natural resources, its labor supply, or even customs or a historical accident -
ANS-What makes some countries are better equipped than others to produce particular
goods or services?
a firm that operates on a worldwide scale without ties to any specific nation or region. -
ANS-multinational enterprise
a limit on the number of products in certain categories that a nation can import - ANS-
import quota
Solutions
- ANS-Most tariffs are placed on imports
- import quota
- embargo
- Foreign-exchange control
- Currency devaluation - ANS-4 examples of nontariff barriers
- national security/defense argument
- equalize a nation's balance of payments
- protects weak industries
- to protect the health of citizens
- retaliation against a country
- jobs and income arguments - ANS-Reasons for trade restrictions
1. Canada and western Europe
2. Mexico and Latin America
3. Japan
4. Emerging Europe
5. Commonwealth of Independent States - ANS-America's export customers
1. Higher prices for consumers
2. Restriction of consumers' choices
3. Misallocation of international resources
4. Loss of jobs - ANS-Reasons against trade restrictions
a contractual agreement in which one firm permits another to produce and market its
product and use its brand name in return for a royalty or other compensation. - ANS-
Licensing
a country's natural resources, its labor supply, or even customs or a historical accident -
ANS-What makes some countries are better equipped than others to produce particular
goods or services?
a firm that operates on a worldwide scale without ties to any specific nation or region. -
ANS-multinational enterprise
a limit on the number of products in certain categories that a nation can import - ANS-
import quota
