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International Trade Management & Regulation Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why do tariffs make import products more expensive?

Question 2 2. The country of Histria produces 100,000 computers and sells them for $1,000 per unit. They sell these computers for $750 on the international market. What is this an example of?

Question 3 3. Country XY has insulted the leaders of its 27 neighboring countries. Due to WTO regulation, these countries cannot implement a tax on the products of XY. They have instead decided to require several permits for products from this country to enter their market and have made the overall process of exporting highly complex. What is this an example of?

Question 4 4. Several companies are coming together with the shared goal of reducing tariffs and eliminating barriers to trade. These companies otherwise compete, but they are joined together in this common goal. This is an example of a _____.

Question 5 5. A country from Africa is looking to invest in building hospitals and schools. It does not have the money to do so but has received very low-interest loans from an international organization. Which of the following has MOST likely provided these funds?

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Question 6 6. How does the IMF impact international monetary policy?

Question 7 7. Tillerson Mobile is looking to invest in an underdeveloped country. It would like to move its manufacturing plant there. It fears the loss of funds and dangerous political environment there. Which international organization could be MOST useful in such a case?

Question 8 8. Which of the following is a component of the World Bank?

Question 9 9. How do quotas limit dumping?

Question 10 10. John went to the market on Wednesday, March 22nd, 2017. A few days later, the government implemented tariffs on foreign fruit. John used to pay $1 for a foreign orange, while domestic pasta cost him $4. In a theoretical scenario where only tariffs have an impact, and all other aspects remain the same, the cost of John's goods will now be _____.

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Question 11 11. Why does the government have to weigh in the additional cost to consumers as compared to the cost per job saved before implementing trade barriers?

Question 12 12. Jim is the owner of a small startup that is in its second year of business. He has invested all of his money into the company. Theresa owns an IT company that has been in business 25 years. Both of these companies are impacted by strong foreign competition. Why can the infant industry argument only be used for one of them?

Question 13 13. All of the following are correct regarding the General Agreement on Tariffs and Trade EXCEPT that it:

Question 14 14. The country of Tederstan now has a most favored nation status with the country of Sardinia. What does this mean?

Question 15 15. Which of the following BEST reflects an example of mercantilism?

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Question 16 16. Which of the following is correct regarding trade barriers?

Question 17 17. _____ is an amount of money paid directly to domestic producers to make them more competitive with foreign imports.

Question 18 18. Define protectionism.

Question 19 19. Which strategy is preferred by multinational companies (MNCs) when trying to export to countries with high trade barriers?

Question 20 20. Which strategy might result in companies being accused of breaking anti-trust law?

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Question 21 21. What organization is involved with the regulation of international trade between its members?

Question 22 22. Why is GATT relevant for the international system?

Question 23 23. Why would you want your country to be assigned the Most Favored Nation status?

Question 24 24. Which of the following was NOT a reason for the creation of NAFTA?

Question 25 25. How do tariffs and quotas benefit a country?

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Question 26 26. If a high tariff is imposed on a specific brand of handbags coming from France, what is a likely effect of this action?

Question 27 27. _____ can often disrupt or make it difficult for domestic firms to compete in various industries.

Question 28 28. Which of the following best summarizes the infant industry argument?

Question 29 29. Which of the following is one of the primary goals of the IMF?

Question 30 30. What is the best explanation of monetary policy?

International Trade Management & Regulation Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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