Reference no: EM132217622
1. Which of the following is prompting farmers in many developed nations to discover new ways to manage risk and increase agricultural efficiency?
designation of agricultural products as dual use products
provision of extensive government subsidies
exposure of agribusiness to market forces
enforcement of trade embargoes and tariffs
2. Which of the following is a result of the protection of domestic companies from international competition?
Companies become more reliant on protection.
Protection increases a company's incentives to obtain the knowledge it needs to become more competitive.
There are increased incentives to cut production costs and improve quality.
Consumers pay less for products.
3. Which of the following statements is true of embargoes?
An embargo may be placed on one or a few goods or may completely ban trade in all goods.
An embargo is the least restrictive nontariff barrier available.
Embargoes are used frequently today because they are easy to implement.
An embargo is usually employed for economic reasons.
4. Which of the following is a method of restricting trade?
foreign trade zones
export financing
subsidy
local content requirements
5. Which of the following is the main cultural motive behind government intervention in trade?
promotion of strategic trade policies
protection of national identity
protection of jobs
protection of young industries from competition
6. Purposely understaffing customs offices to cause time delays, requiring special licenses that take a long time to obtain, and requiring air carriers to land at inconvenient airports are all examples of ________.
local content requirements
administrative delays
voluntary export restraints
import quotas
7. Which of the following statements is true of tariffs?
They protect domestic producers.
They increase products' appeal to buyers.
They lower the effective prices of imports.
They are the major source of government revenue in developed nations.
8. Countries might impose a(n) ________ in response to the threat of an import quota or total ban on a product by an importing nation.
ad valorem tariff
compound tariff
embargo
voluntary export restraint
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