Business

Which of the following is a loophole in antidumping laws that is being

QUESTION Which of the following is a loophole in antidumping laws that is being exploited by many countries to pursue protectionism? A. The slackness of enforcement agencies B. WTO’s noncommittal approach to antidumping laws C. Bilateral VERs which subvert antidumping laws D. The rather vague definition of what constitutes “dumping” E. Lack of consensus among […]

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Date: September 3rd, 2020

Which of the following has been excluded from the agenda for the Doha

QUESTION Which of the following has been excluded from the agenda for the Doha round of WTO talks that began in 2001? A. Reducing barriers to cross-border investment B. Phasing out subsidies to agricultural producers C. Limiting the use of antidumping laws D. Attempts to tie trade to labor standards in a country E. Cutting […]

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Date: September 3rd, 2020

The threat of antidumping action: A. helps the firm raise capital in

QUESTION The threat of antidumping action: A. helps the firm raise capital in the primary market. B. limits the ability of a firm to raise prices in response to high demand. C. enhances the firm’s ability to disperse its productive activities in an efficient manner. D. limits the ability of a firm to use aggressive […]

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Date: September 3rd, 2020

When a firm exports its products to a foreign country, foreign direct

QUESTION When a firm exports its products to a foreign country, foreign direct investment occurs. Indicate whether the statement is true or false.   ANSWER FALSE Foreign direct investment (FDI) occurs when a firm invests directly in facilities to produce or market a product in a foreign country. According to the U.S. Department of Commerce, […]

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Date: September 3rd, 2020

The attractiveness of exporting increases in comparison to FDI or lice

QUESTION The attractiveness of exporting increases in comparison to FDI or licensing when products have a low value-to-weight ratio. Indicate whether the statement is true or false.   ANSWER FALSE The viability of an exporting strategy is often constrained by transportation costs and trade barriers. When transportation costs are added to production costs, it becomes […]

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Date: September 3rd, 2020

By placing tariffs on imported goods, governments can increase the cos

QUESTION By placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing. Indicate whether the statement is true or false.   ANSWER TRUE Transportation costs aside, some firms undertake foreign direct investment as a response to actual or threatened trade barriers such as import tariffs or […]

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Date: September 3rd, 2020

By limiting imports through quotas, governments reduce the attractiven

QUESTION By limiting imports through quotas, governments reduce the attractiveness of FDI and licensing. Indicate whether the statement is true or false.   ANSWER FALSE By limiting imports through quotas, governments increase the attractiveness of FDI and licensing. For example, the wave of FDI by Japanese auto companies in the United States during the 1980s […]

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Date: September 3rd, 2020

According to the free market view, countries should specialize in the

QUESTION According to the free market view, countries should specialize in the production of those goods and services that they can produce most efficiently. Indicate whether the statement is true or false.   ANSWER TRUE The free market view argues that international production should be distributed among countries according to the theory of comparative advantage. […]

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Date: September 3rd, 2020

The country of Cadmia, which is a leading producer of bauxite, had to

QUESTION The country of Cadmia, which is a leading producer of bauxite, had to impose trade sanctions on Cerian soda cans in order to get the government of Ceria to enforce export restraints. This imposition by Cadmian government was undertaken to protect domestic producers of soda cans. Which of the following government intervention is being […]

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Date: September 3rd, 2020

The WTO’s Agreement on which of the following is an attempt to narrow

QUESTION The WTO’s Agreement on which of the following is an attempt to narrow the gaps in the way intellectual property rights are protected around the world and to bring them under common international rules? A. Intellectual Property Rights Enforcement Directive (IPRED) B. Court of Arbitration of Intellectual Property (CAIP) C. Trade-Related Aspects of Intellectual […]

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Date: September 3rd, 2020