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MAN 3600 EXAM 2 FSU KIM |
ACTUAL 2025 EXAM. VERIFIED
QUESTIONS AND DETAILED
ANSWERS
Nontariff trade barrier - CORRECT ANS>>Government policy, regulation, or procedure
that impedes trade.
Quota - CORRECT ANS>>Quantitative restriction on imports of a specific product (e.g.,
Imports of Japanese cars).
Administrative barriers - CORRECT ANS>>Documentations and procedures
Investment barriers - CORRECT ANS>>Rules or laws that hinder foreign direct
investment
(e.g., Mexico's restrictions in its oil industry).
Example of Protectionism: - CORRECT ANS>>U.S. Steel Industry, Auto Industry
Consequences of Protectionism - CORRECT ANS>>• Reduced supply of goods to
buyers.
Price inflation
Reduced variety, fewer choices available to buyers.
Reduced industrial competitiveness.
Various adverse unintended consequences (e.g., While the home country dithers,
other countries can race ahead).
Two Types of Rationale for Protectionism - CORRECT ANS>>defensive barriers
offensive barriers
defensive barriers - CORRECT ANS>>- Safeguarding industries, workers, special
interest groups
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Protecting infant industries
Promoting national security (export controls)
offensive barriers - CORRECT ANS>>- Pursuing a strategic or public policy objective
Increasing employment
Generating taxes.
Tariff Barriers and their role in the world trade history - CORRECT ANS>>reduced
tariffs over time, mainly via the General Agreement on Tariffs and Trade (GATT), which
became the World Trade
Organization (WTO).
Economic integration
Types of import tariffs - CORRECT ANS>>- Ad valorem tariff- a fixed percentage of the
value of the
product.
10% of value
Specific tariff- set amount charged per unit.
$.25 per unit
Compound tariff- a combination of the two tariffs.
$.50 per unit + 7%
4 types of nontariff barriers - CORRECT ANS>> Quotas
Local Content Regulation
Subsidies
Administrative Barriers
Quotas - CORRECT ANS>>limits on the quantity of imports.
Local Content Regulation - CORRECT ANS>>Mandatory use of some locally sourced
parts
MAN 3600 EXAM 2 FSU KIM |
ACTUAL 2025 EXAM. VERIFIED
QUESTIONS AND DETAILED
ANSWERS
Nontariff trade barrier - CORRECT ANS>>Government policy, regulation, or procedure
that impedes trade.
Quota - CORRECT ANS>>Quantitative restriction on imports of a specific product (e.g.,
Imports of Japanese cars).
Administrative barriers - CORRECT ANS>>Documentations and procedures
Investment barriers - CORRECT ANS>>Rules or laws that hinder foreign direct
investment
(e.g., Mexico's restrictions in its oil industry).
Example of Protectionism: - CORRECT ANS>>U.S. Steel Industry, Auto Industry
Consequences of Protectionism - CORRECT ANS>>• Reduced supply of goods to
buyers.
Price inflation
Reduced variety, fewer choices available to buyers.
Reduced industrial competitiveness.
Various adverse unintended consequences (e.g., While the home country dithers,
other countries can race ahead).
Two Types of Rationale for Protectionism - CORRECT ANS>>defensive barriers
offensive barriers
defensive barriers - CORRECT ANS>>- Safeguarding industries, workers, special
interest groups
, 2|Page
Protecting infant industries
Promoting national security (export controls)
offensive barriers - CORRECT ANS>>- Pursuing a strategic or public policy objective
Increasing employment
Generating taxes.
Tariff Barriers and their role in the world trade history - CORRECT ANS>>reduced
tariffs over time, mainly via the General Agreement on Tariffs and Trade (GATT), which
became the World Trade
Organization (WTO).
Economic integration
Types of import tariffs - CORRECT ANS>>- Ad valorem tariff- a fixed percentage of the
value of the
product.
10% of value
Specific tariff- set amount charged per unit.
$.25 per unit
Compound tariff- a combination of the two tariffs.
$.50 per unit + 7%
4 types of nontariff barriers - CORRECT ANS>> Quotas
Local Content Regulation
Subsidies
Administrative Barriers
Quotas - CORRECT ANS>>limits on the quantity of imports.
Local Content Regulation - CORRECT ANS>>Mandatory use of some locally sourced
parts
