Business

Antidumping actions seem to be concentrated in certain sectors of the

QUESTION Antidumping actions seem to be concentrated in certain sectors of the economy such as basic metal industries (e.g., aluminum and steel), chemicals, plastics, and machinery and electrical equipment. Indicate whether the statement is true or false.   ANSWER TRUE Antidumping actions seem to be concentrated in certain sectors of the economy such as basic […]

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Date: September 3rd, 2020

Dumping involves foreign producers: A. attempting hostile takeovers o

QUESTION Dumping involves foreign producers: A. attempting hostile takeovers of domestic firms and usurping the available resources for production. B. indiscriminately exploiting the natural resources of a foreign country to create a later demand that can be met only by imports. C. eliminating competition by subsidizing prices in a foreign market with home market profits […]

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Date: September 3rd, 2020

Government intervention can be self-defeating because it tends to prot

QUESTION Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors. Indicate whether the statement is true or false.   ANSWER TRUE Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors. Intervention is dangerous; […]

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Date: September 3rd, 2020

A firm may set up production activities in a foreign country, where tr

QUESTION A firm may set up production activities in a foreign country, where trade barriers do not currently exist, to reduce the threat of trade barriers being imposed later. Indicate whether the statement is true or false.   ANSWER TRUE Even when trade barriers do not exist, the firm may still want to locate some […]

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Date: September 3rd, 2020

The threat of antidumping action enhances the ability of a firm to use

QUESTION The threat of antidumping action enhances the ability of a firm to use aggressive pricing to gain market share in a country. Indicate whether the statement is true or false.   ANSWER FALSE The threat of antidumping action limits the ability of a firm to use aggressive pricing to gain market share in a […]

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Date: September 3rd, 2020

According to Paul Krugman, a country that adopts a strategic trade pol

QUESTION According to Paul Krugman, a country that adopts a strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry will probably provoke retaliation. Indicate whether the statement is true or false.   ANSWER TRUE Krugman argues that a strategic trade policy aimed at establishing domestic firms in a […]

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Date: September 3rd, 2020

The strategic trade policy arguments of the new trade theorists sugges

QUESTION The strategic trade policy arguments of the new trade theorists suggest an economic justification for government intervention in international trade and this justification challenges the rationale for unrestricted free trade. Indicate whether the statement is true or false.   ANSWER TRUE The strategic trade policy arguments of the new trade theorists suggest an economic […]

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Date: September 3rd, 2020