IB 600 Final Exam Questions With
Complete Solutions Answered 100%
Correctly
What is the main motive for countries' protection of their film/cinema industries?
to maintain their cultural identity and sovereignty
If a country establishes export controls in order to increase domestic supplies,
which of the following is LEAST likely to occur?
Domestic producers will likely work to develop substitutes.
The relationship between import substitution policies and export-led
development policies is best characterized by which of the following?
The two are hard to distinguish because production under import substitution may
eventually be exported.
Export-led development refers to ________.
an industrialization program emphasizing industries that will have export capabilities
The rationale for the infant-industry argument is that ________.
it takes time for an industry to become competitive in world markets, so protection is
needed to help this industry pass through the critical period
Countries sometimes establish export restrictions to ________.
raise prices in foreign markets
A problem that can arise in using trade protectionism to develop international
competitiveness for a domestic industry is that ________.
,it is difficult to identify those industries that have a high probability of reaching
competitiveness
In addition to protection, tariffs serve to ________.
generate revenue
Unemployed workers are most apt to form a pressure group to support ________.
import restrictions
Which types of companies are most likely to lose from increased global
protectionist measures?
companies that have integrated their production and supply chains internationally
A voluntary export restriction (VER) refers to ________.
limits placed on exports by a government of an exporting country at the request of the
government of an importing country
Foreign aid and loans can sometimes be considered subsidies because
________.
the recipient may be required to use the funds to buy from businesses in the donor
countries
Exporting below cost or below the home country price is called ________.
dumping
Successful trade retaliation is most likely achieved ________.
by a large trading country
The most common type of tariff is the ________ tariff.
import
Managers should understand the effect of trade protectionism because ________.
trade protectionism may make it difficult for a company to buy what it needs from foreign
suppliers
An argument against limiting exports to unfriendly countries is that ________.
the costs of the sanctions are borne by innocent people rather than by the leaders
All of the following are reasons a country might institute import restrictions to
improve its balance of trade position with other countries EXCEPT which one?
to maintain essential industries
Countries sometimes establish export restrictions to ________.
, favor domestic consumers
Why have many countries come to believe that an export-led development policy
is better than an import substitution policy?
Some countries have achieved more economic growth through export-led development
policies than other countries have achieved through import substitution policies.
People who argue for keeping the U.S. trade embargo with Cuba claim all the
following EXCEPT which one?
Removal of the embargo will cause much more Cuban immigration to the United States.
What is a quota?
a quantitative limit on the amount of a product that can be imported or exported
The least controversial of government subsidies are ________.
those intended to overcome market imperfections, such as the dissemination of market
information
An optimum tariff is ________.
a tariff that causes a foreign producer to lower its export price
Which of the following is a difficulty for dismantling developed countries'
agricultural subsidies?
Rural areas in the United States, the European Union, and Japan are disproportionately
represented in their governments.
According to the PLC theory, at an early stage of a product's life cycle the
product is likely to be made in a more ________ method than in its later stages.
labor-intensive
According to the PLC theory, companies produce products where labor rates are
high during the introductory stage of the products' cycles. Which of the following
is NOT a reason for this practice?
Import restrictions prevent production in countries other than the ones making product
innovations.
According to the PLC theory, developing countries have their best production
advantage in which stage of the product life cycle?
decline
Complete Solutions Answered 100%
Correctly
What is the main motive for countries' protection of their film/cinema industries?
to maintain their cultural identity and sovereignty
If a country establishes export controls in order to increase domestic supplies,
which of the following is LEAST likely to occur?
Domestic producers will likely work to develop substitutes.
The relationship between import substitution policies and export-led
development policies is best characterized by which of the following?
The two are hard to distinguish because production under import substitution may
eventually be exported.
Export-led development refers to ________.
an industrialization program emphasizing industries that will have export capabilities
The rationale for the infant-industry argument is that ________.
it takes time for an industry to become competitive in world markets, so protection is
needed to help this industry pass through the critical period
Countries sometimes establish export restrictions to ________.
raise prices in foreign markets
A problem that can arise in using trade protectionism to develop international
competitiveness for a domestic industry is that ________.
,it is difficult to identify those industries that have a high probability of reaching
competitiveness
In addition to protection, tariffs serve to ________.
generate revenue
Unemployed workers are most apt to form a pressure group to support ________.
import restrictions
Which types of companies are most likely to lose from increased global
protectionist measures?
companies that have integrated their production and supply chains internationally
A voluntary export restriction (VER) refers to ________.
limits placed on exports by a government of an exporting country at the request of the
government of an importing country
Foreign aid and loans can sometimes be considered subsidies because
________.
the recipient may be required to use the funds to buy from businesses in the donor
countries
Exporting below cost or below the home country price is called ________.
dumping
Successful trade retaliation is most likely achieved ________.
by a large trading country
The most common type of tariff is the ________ tariff.
import
Managers should understand the effect of trade protectionism because ________.
trade protectionism may make it difficult for a company to buy what it needs from foreign
suppliers
An argument against limiting exports to unfriendly countries is that ________.
the costs of the sanctions are borne by innocent people rather than by the leaders
All of the following are reasons a country might institute import restrictions to
improve its balance of trade position with other countries EXCEPT which one?
to maintain essential industries
Countries sometimes establish export restrictions to ________.
, favor domestic consumers
Why have many countries come to believe that an export-led development policy
is better than an import substitution policy?
Some countries have achieved more economic growth through export-led development
policies than other countries have achieved through import substitution policies.
People who argue for keeping the U.S. trade embargo with Cuba claim all the
following EXCEPT which one?
Removal of the embargo will cause much more Cuban immigration to the United States.
What is a quota?
a quantitative limit on the amount of a product that can be imported or exported
The least controversial of government subsidies are ________.
those intended to overcome market imperfections, such as the dissemination of market
information
An optimum tariff is ________.
a tariff that causes a foreign producer to lower its export price
Which of the following is a difficulty for dismantling developed countries'
agricultural subsidies?
Rural areas in the United States, the European Union, and Japan are disproportionately
represented in their governments.
According to the PLC theory, at an early stage of a product's life cycle the
product is likely to be made in a more ________ method than in its later stages.
labor-intensive
According to the PLC theory, companies produce products where labor rates are
high during the introductory stage of the products' cycles. Which of the following
is NOT a reason for this practice?
Import restrictions prevent production in countries other than the ones making product
innovations.
According to the PLC theory, developing countries have their best production
advantage in which stage of the product life cycle?
decline
