Question 1

The Fly American Act is an example of a nontariff barrier.

Accepted Answer

The Fly American Act requires that all federal agencies use US-made aircraft for all their transportation needs, thus restricting the use of foreign-made aircraft. This is an example of a nontariff barrier, which is a form of trade barrier that takes a different form than a tariff, such as a regulation or standard that restricts the free flow of goods or services between countries.

Question 2

The Harmonized Tariff System (HTS)is currently the dominant system for determining the correct classification number.

Accepted Answer

The Harmonized Tariff System (HTS) is currently the most widely used system for determining the correct classification number for goods that are being imported or exported. It is used by over 200 countries and territories worldwide, and is considered the most accurate and efficient method for classifying products for international trade.

Question 3

Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies?

Accepted Answer

When a home-country government provides export subsidies to its companies, other countries may impose countervailing duties on the subsidized goods to level the playing field and prevent unfair competition.

Question 4

According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualify for lower duties than human figures that are classified as dolls.

Accepted Answer

This statement is true. The current regulations classify action figures representing non-human creatures under the category of toys, which are subject to lower duties than dolls classified under the category of human figures.

Question 5

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Accepted Answer

The Common Agricultural Policy (CAP) is a European Union policy that determines the level of subsidies granted to farmers in Europe. It does not have any impact on subsidies granted to farmers in Latin America.

Question 6

A nontariff barrier (NTB)is a hidden trade barrier that is a deterrent or obstacle to the sale of products in a foreign market.

Accepted Answer

A nontariff barrier can take many forms, including technical regulations, product standards, licensing requirements, quotas, subsidies, and other trade policies that make it harder for foreign companies to do business in a particular country. These barriers may be less visible than traditional tariffs or customs duties, but they can be just as effective at limiting international trade.

Question 7

The sale of merchandise in export markets at unfair prices is known as:

Accepted Answer

The sale of merchandise in export markets at unfair prices is known as dumping. It involves selling goods at a price lower than their normal or fair market value, which can harm domestic producers and businesses of the importing country.

Question 8

A duty that represents a certain percentage of the value of a particular product is a(n):

Accepted Answer

An ad valorem duty is a duty that represents a certain percentage of the value of a particular product.

Question 9

China has imposed tariffs as high as 28% on foreign-made auto parts.

Accepted Answer

China announced in 2018 that it would impose tariffs ranging from 15% to 25% on a range of US goods, including auto parts and vehicles, in response to US tariffs on Chinese goods. The tariff on auto parts applies to imports from all countries, not just the US.

Question 10

Governmental actions at times are designed to discourage imports and block market access. Why do governments want to curtail imports? Explain some of the barriers that are placed to discourage imports.

Accepted Answer

The answer of Governmental actions at times are designed to...

Question 11

Tariffs can be thought of as the "three R's" of global business: rules, rigor, and regulations of individual countries.

Accepted Answer

Tariffs are taxes imposed on imported goods and services, not the rules, rigor, and regulations of individual countries.

Question 12

In an effort to facilitate Z).exports, countries are designating certain areas as "free trade zones" (FTZ)or "special economic zones" (SE

Accepted Answer

This is true. Many countries have established free trade zones or special economic zones with the aim of promoting and facilitating exports. These zones typically offer special tax and regulatory benefits to businesses operating within them, making them attractive locations for companies looking to do business internationally.

Question 13

The United States has given Normal Trade Relations (NTR)status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except:

Accepted Answer

The United States has given Normal Trade Relations (NTR) status to all countries except North Korea, Iran, Cuba, and Syria. Iraq and Libya have been granted NTR status.

Question 14

Sweden applies a system to certain categories of imported agricultural products referred to as:

Accepted Answer

Sweden applies a system of variable import levies to certain categories of imported agricultural products. This system involves adjusting the import duty based on the difference between the European Union market price and the world market price for the particular product. The goal of this system is to protect domestic producers and ensure fair competition.

Question 15

Why does the tariff system vary from country to country? Explain, giving examples of tariffs imposed by the United States with particular emphasis on preferential tariffs. What are the conditions under which GATT allows the use of preferential tariffs?

Accepted Answer

The answer of Why does the tariff system vary from...

Question 16

Overall, Italy's retail sector has pursued very little international expansion; by contrast, other European supermarket chains such as Tesco (UK), Metro (Germany), and Carrefour (France)took local products and brands with them as they expanded around the globe.

Accepted Answer

The passage states that Italy's retail sector has pursued very little international expansion compared to other European supermarket chains that have taken local products and brands with them as they expanded globally.

Question 17

Which of the following is described as the three R's of global business: rules, rate schedules, and regulations?

Accepted Answer

The three R's of global business are rules, regulations, and rate schedules, which are all related to tariffs. Quotas and non-tariff barriers (NTBs) are not included in the three R's. NTR is not a commonly used abbreviation in international trade. Duties are another term for tariffs, but B is the best answer as it specifically mentions rate schedules.

Question 18

The Buy American Act of 1933, which stipulates that U.S. federal agencies must buy articles produced in the United States unless domestically produced goods are not available, is an example of discriminatory procurement policies.

Accepted Answer

The Buy American Act of 1933 restricts the procurement of goods and products to U.S. made articles, effectively discriminating against foreign-made products.

Question 19

In 2010, dozens of Bangladeshis were killed in two separate fires in factories that made clothing for western clients such as JCPenney and Gap. In November 2012, 112 garment workers were killed when a fire broke out at Tazreen Fashions, a clothing manufacturer in Dhaka, Bangladesh. What are the implications of these tragic incidences on the export by a country dependent on exports?

Accepted Answer

The answer of In 2010, dozens of Bangladeshis were killed...

Question 20

The Harmonized Tariff System (HTS)has eliminated virtually all problems associated with assigning tariff classifications to new products.

Accepted Answer

While the HTS provides a standardized system for assigning tariff classifications, there may still be challenges in correctly identifying the appropriate classification for new products, especially those that straddle multiple categories or are not explicitly covered by existing classifications.

Quiz 8: Importing, Exporting, and Sourcing