Chapter 8

Question 1

Multinational corporation

Answer 1

A corporation that owns businesses in two or more countries

Question 2

Direct Foreign investment

Answer 2

A method of investment in which a company builds a new business or buys an existing business in a foreign country

Question 3

Trade Barriers

Answer 3

Government imposed regulations that increase the cost and restrict the number of imported goods

Question 4

Protectionism

Answer 4

A governments use of trade barriers to shield domestic companies and their workers from foreign competition

Question 5

Tariff

Answer 5

A direct tax on imported goods

Question 6

No tariff barriers

Answer 6

No tax methods of increasing the cost or reducing the volume of imported goods

Question 7

Quotas

Answer 7

A limit on the number or volume of imported goods

Question 8

Voluntary export restraints

Answer 8

Voluntarily imposed limits on the number or volume of products exported to a particular country

Question 9

Government import standard

Answer 9

A standard ostensibly established to protect the health and safety of citizens but, in reality is often used to restrict imports

Question 10

Subsidies

Answer 10

Government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

Question 11

Customs classification

Answer 11

A classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas

Question 12

General Agreement on Tariffs and Trade GATT

Answer 12

Worldwide trade agreement that reduced and eliminate tariffs limited government subsidies established protections for intellectual property