Governmental Influence on Trade Quiz

What are the learning objectives of the text?

• Explain the role of stakeholders in trade policies

• Discuss the dynamics and complexity of trade restrictions

• Discuss the economic and non-economic rationales for government intervention in trade

• Explain the physical and social factors affecting the flow of goods and services

What is protectionism?

• A policy that promotes free trade

• A policy that affects the ability of foreign producers to compete in the home market

• A policy that limits government intervention in trade

• A policy that encourages import competition

What are the conflicting results of trade policies?

• Policymakers are not affected by conflicting objectives

• Policymakers are influenced by consumer preferences

• Policymakers are supported by interest groups and stakeholders

• Policymakers are challenged by conflicting objectives and interest groups

What is the essential industry argument for government intervention?

• To preserve national culture

• To maintain or extend spheres of influence

• To protect essential industries from foreign dependency during war

• To promote acceptable practices abroad

What are tariffs also known as?

• Subsidies

• Aid and loans

• Duties

• Quotas

What do quotas do?

• Provide direct assistance to companies to make them more competitive

• Control prices of exports or imports

• Promote changes in foreign countries' political policies

• Limit the quantity of a product that can be imported or exported in a given time frame

How can companies deal with import competition?

• All of the above

• Prepare for changes in the competitive environment

• Convince decision makers of the merits of particular policies

• Seek other market niches

What may the gains to consumers from freer trade come at the expense of?

• Companies and workers

• Governments and stakeholders

• Investors and suppliers

• Interest groups and policymakers

What is the international regulatory situation becoming?

• More transparent

• More complex

• More favorable for small economies

• More restrictive

What is the Tic Tac Simulation?

• A government intervention strategy

• A trade policy negotiation game

• A trade restriction enforcement tool

• A consumer protection program