Part 6 Flashcards
Which of the following is a government policy that discourages imports? A. Import tariffs B. NAFTA C. Subsidies D. Tax incentives E. Free trade zones
A. Import tariffs
For centuries, nations have combined two opposing policy attitudes toward the movement of goods across national boundaries.
On the one hand, nations _______ exports; on the other hand, the flow of imports can be _______.
A. encourage; restricted
B. build; stimulated
C. are neutral to; restricted
D. restrict; encouraged
E. discourage; encouraged
A. encourage; restricted
Which of the following do governments use to discourage imports? A. Tax incentives B. Free trade zones C. Subsidies D. Export assistance E. Quotas
E. Quotas
Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all the following EXCEPT \_\_\_\_\_\_\_\_\_\_. A. subsidies B. free trade zones C. debt forgiveness D. tax incentives E. export assistance
C. debt forgiveness
__________ are government rules, laws, or administrative regulations requiring that goods or services be purchased from
domestic companies.
A. Restrictive administrative and technical regulations
B. Tariffs
C. Discriminatory procurement policies
D. Harmonized tariff systems
E. Quotas
C. Discriminatory procurement policies
Under which of the following do importers and exporters have to determine the correct classification number for a given product or service that will cross borders? A. Countervailing duties (CVD) B. Harmonized Tariff System (HTS) C. Non-tariff barriers (NTB) D. Normal trade relations (NTR) E. Discriminatory procurement policies
B. Harmonized Tariff System (HTS)
Which of the following can be considered the "three Rs"rules, rates, and schedules of global business? A. Custom duties B. Quotas C. Tariffs D. Subsidies E. Non-tariff trade barriers (NTB)
C. Tariffs
What is the purpose of the Harmonized Tariff System (HTS)?
A. The HTS outlaws discriminatory exchange rates.
B. The HTS is designed to ensure that developing nations do not have to pay tariffs.
C. The HTS is designed to limit the amount of tariffs a nation can impose.
D. The HTS provides that tariffs are not levied on imports of new products.
E. The HTS requires importers and exporters to determine the correct classification number for a given product
or service that will cross borders
E. The HTS requires importers and exporters to determine the correct classification number for a given product
or service that will cross borders
What does the Harmonized Tariff System’s (HTS) Schedule B stipulate?
A. That reduced tariffs are applied to certain product categories.
B. Schedule B stipulates the rates used in two-column tariff tables.
C. That the export classification number for any exported item is the same as the import classification number.
D. That a reduced tariff rate is applied to imports from certain countries.
E. That countries maintain a schedule of duties in which the tariff rate applies to imports from all countries on the same
basis.
C. That the export classification number for any exported item is the same as the import classification number.
Which of the following establishes classification numbers that must be used by importers and exporters? A. The Harmonized tariff system (HTS) B. Normal trade relations (NTR) C. Countervailing duties (CVD) D. Non-trade barriers (NTB) E. Common Agricultural Policy (CAP)
A. The Harmonized tariff system (HTS)
Under the Harmonized Tariff System (HTS), products with a value of less than _______ are not counted as a U.S. export.
However, all imports, regardless of value, are counted.
A. $5,000
B. $1 million
C. $500,000
D. $150,000
E. $2,500
E. $2,500
Which of the following is an independent marketing intermediary that acts as the export department for two or more non-competing manufacturers? A. Cooperative exporter B. Export management company (EMC) C. Export commission representative D. Export broker E. Foreign purchasing agent
B. Export management company (EMC)
A __________ is one of the names for an export organization of a manufacturing company retained by other independent
manufacturers to sell their products in foreign markets.
A. export management company
B. freight forwarder
C. export merchant
D. piggyback exporter
E. export broker
D. piggyback exporter
Which of the following is sometimes referred to as a buyer for export or an export commission house that operates on behalf of a buyer from a foreign country? A. Export management company B. Freight forwarder C. Export broker D. Export merchant E. Foreign purchasing agent
E. Foreign purchasing agent
________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be
considered as the travel agents for handling export goods.
A. Cooperative exporters
B. Foreign purchasing agents
C. Freight forwarders
D. Export merchants
E. Export brokers
C. Freight forwarders
________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose
product lines do not compete with each other.
A. An export management company
B. An export merchant
C. An export commission representative
D. A cooperative exporter
E. A manufacturer’s export agent (MEA)
A. An export management company
The _____________________ sometimes called a mother hen, a piggyback exporter, or an export vendor, is an export
organization of a manufacturing company retained by other independent manufacturers to sell their products in foreign markets.
A. export management company
B. export distributor
C. export commission representative
D. cooperative exporter
E. manufacturer’s export agent (MEA)
D. cooperative exporter
A company that assigns high priority to its export business will probably use which of the following arrangements for handling
export responsibilities?
A. An in-house organization
B. A part-time activity performed by domestic employees
C. Freight forwarders
D. An export facilitator
E. An independent manufacturer’s export agent (MEA)
A. An in-house organization
Which of the following is an advantage of making export responsibility a part of a domestic employee’s job description?
A. It gives a domestic employee an opportunity to learn about a foreign country.
B. It is a low-cost arrangement requiring no additional personnel.
C. It creates competence in market knowledge.
D. It creates competence in product knowledge.
E. It gives a domestic employee a chance to gain additional skills
B. It is a low-cost arrangement requiring no additional personnel.
When organizing for exporting in the manufacturer’s home country, how do most companies handle export operations?
A. Through indirect representation in the foreign country.
B. By using independent export distributors.
C. Through direct representation in the foreign country.
D. Within their own in-house export organization.
E. By working with an external organization specializing in a product or geographic region.
D. Within their own in-house export organization.