Chapter 6 Test

Which of the following is a political motive behind a government's intervention in trade?

• promoting a strategic trade policy
• gaining influence over other nations
• protecting a country from unwanted cultural influence
• protecting young industries from competition

________ refers to the unwanted cultural influence in a nation that can cause great distress and lead governments to block imports it believes to be harmful.

• Cultural imperialism
• Cultural protectionism
• Dumping
• Capitalism

Which of the following countries is seen as a threat to national cultures around the world?

• United States
  
• India
• Russia
• France

The purpose of ________ is to force companies from other nations to use local resources in their production processes, particularly labor.

• administrative delays
• currency controls
  
• local content requirements
• voluntary export restraints

When a company exports a product at a price that is lower than the price normally charged in its domestic market or lower than the cost of production, it is said to be ________.

• dumping
• ringfencing
• hoarding
• cost-shifting

An additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy is called a(n) ________.

• countervailing duty
• ad valorem tariff
• antidumping duty
  
• compound tariff

Industries considered essential to national security often receive government-sponsored protection.

• True
• False

Financial assistance given to domestic producers in the form of cash payments is an example of a(n) ________.

• ad valorem tariff
• quota
• subsidy
• export tariff

A designated geographic region in which merchandise is allowed to pass with lower customs duties and/or fewer custom procedures is called a(n) ________.

• foreign trade zone
• free trade area
• single market
• open border
  

Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.

• True
• False