Question 1

If an anti-dumping order is issued against a good, the manufacturer of that good:

Accepted Answer

If an anti-dumping order is issued against a good, the manufacturer of that good must pay an antidumping duty, which is an additional tariff that is assessed on the imported products to offset the price difference caused by the dumping. The manufacturer is not required to remove the product from the U.S. market or reimburse affected U.S. manufacturers directly.

Question 2

"Dumping" is the practice of:

Accepted Answer

Dumping refers to foreign companies selling goods at lower prices in the U.S. market than in their home markets. This practice may harm domestic businesses and industries, and can lead to trade disputes and the imposition of trade barriers.

Question 3

To respond to claims of dumping in U.S. markets, or foreign government subsidies for production, the International Trade Commission (ITC) may:

Accepted Answer

Imposing a tariff on goods coming into the U.S. equal to the value of the subsidy is the most likely response by the ITC to address claims of foreign government subsidies for production. This approach makes it more expensive for the foreign producer to export their goods to the U.S. and helps level the playing field for domestic producers. Other options listed are not typically used to address dumping or subsidies.

Question 4

In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

Accepted Answer

In United States v. Mead Corporation, the Supreme Court held that Customs' tariff classification rulings are not entitled to Chevron deference unless Congress has indicated that such rulings carry the force of law. This decision means that while Customs' rulings are given respect, they do not automatically have the same authority as federal law, and their classifications can be challenged in court. The case did not conclude with Mead not owing any tariffs, a compromise tariff, or the case being thrown out for lack of evidence, nor did it establish that all Customs rulings are equivalent to federal law.

Question 5

Gables purchased used Mercedes from a German company. The cars were built for the German market and met its safety and pollution requirements. Gables hoped to sell the cars in the U.S., and so shipped them to New York. Upon reaching Customs, the cars will:

Accepted Answer

Cars imported into the U.S. must meet certain safety and pollution control requirements for cars operated in the U.S. Therefore, Gables' cars will not pass through Customs unless they meet these requirements.

Question 6

In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

Accepted Answer

The Supreme Court held that rulings by agencies like Customs can carry the force of law if Congress has delegated that authority to them, but the level of deference given to those rulings will depend on various factors. The Court determined that the appropriate standard to apply in this case was the Skidmore standard, which requires consideration of the agency's expertise, the thoroughness of its reasoning, the persuasiveness of its arguments, and the degree of deference warranted. Therefore, the case should be reevaluated in the Court of Appeals using this standard.

Question 7

Gables purchased used Mercedes from a German company. The cars were built for the German market and met its safety and pollution requirements. Gables hoped to sell the cars in the U.S., and so shipped them to New York. Upon reaching Customs, the cars will:

Accepted Answer

The primary reason the cars may not be allowed through U.S. Customs is that they were built for the German market and may not meet U.S. safety and pollution requirements. The options provided do not accurately address the specific regulations and standards that imported vehicles must meet to be legally sold and used in the U.S.

Question 8

RoundTire Bicycle manufactures bicycles. It buys parts from foreign companies, pays for them overseas, and ships them to Houston where U.S. duties are paid. The parts are then shipped to a plant in Texas for assembly and sale. The company is considering alternatives to reduce costs. Which of the following is most likely to be successful:

Accepted Answer

By locating the plant in a foreign-trade zone, RoundTire Bicycle can avoid paying duty on imported parts until the assembled bicycles are shipped out of the zone. This strategy can help to reduce costs for the company. The other options listed are not relevant or cannot address the issue of reducing costs for RoundTire Bicycle.

Question 9

The U.S. bans a number of products from entering the country. These products include:

Accepted Answer

The answer of The U.S. bans a number of products...

Question 10

To respond to claims of dumping in U.S. markets, or foreign government subsidies, the International Trade Commission (ITC) may:

Accepted Answer

The options mentioned in the question do not accurately describe the actions that the ITC may take in response to claims of dumping in U.S. markets or foreign government subsidies. Therefore, the correct answer is E, which states that none of the other choices are correct. Instead, the ITC may conduct investigations and potentially recommend actions such as imposing anti-dumping duties or countervailing duties on the affected imports.

Question 11

Which of the following items are banned from being imported into the U.S.:

Accepted Answer

All of the specific choices are banned from being imported into the U.S.

Question 12

Dumping is:

Accepted Answer

Dumping refers to the practice of exporting goods at a price lower than the home market or below the cost of production, not any of the options listed.

Question 13

A foreign trade zone is a(n):

Accepted Answer

A foreign trade zone is a designated location within a country where goods can be imported, stored, and manipulated without the intervention of the customs authorities for the purpose of export or re-export. It doesn't specifically match any of the descriptions given in options A, B, C, or D.

Question 14

Duty orders generally remain in place until:

Accepted Answer

Duty orders are legal instruments used by countries to impose additional tariffs or restrictions on imports to protect domestic industries from unfair competition, such as dumping or subsidies. They do not automatically expire based on the conditions listed in options A, B, C, or D. Instead, their duration and terms of removal or modification are typically determined by the issuing authority's review process, which may involve investigations into whether the conditions that led to the imposition of the duty order have changed.

Question 15

"Dumping" is the practice of:

Accepted Answer

"Dumping" actually refers to the practice of a company exporting a product at a price lower than the price it normally charges in its own home market. None of the provided options accurately describe this practice.

Question 16

A foreign trade zone is a(n):

Accepted Answer

A foreign trade zone is an area designated by the government where businesses can import goods without paying tariffs. Instead, they are only charged when the goods leave the foreign trade zone and enter the domestic market. This can benefit businesses by allowing them to store, assemble, or manufacture goods without incurring the cost of tariffs until the final product is sold in the domestic market.

Question 17

When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:

Accepted Answer

The WTO does not have the power to force a nation to change its restriction on dumping tariffs. However, the WTO can authorize retaliatory measures against the nation, such as allowing other countries to impose tariffs on the nation's exports. The WTO can also provide mediation and dispute settlement services to resolve the issue.

Question 18

The U.S. standardizes the way in goods are classified by customs officials by using a(n):

Accepted Answer

The correct term is "Harmonized Tariff Schedule" (HTS), which is not listed among the options.

Question 19

Dumping is:

Accepted Answer

Dumping refers to the practice of selling goods in a foreign market at a lower price than in the domestic market. This can be done by using unfair trade practices such as subsidies or by taking advantage of lower production costs or currency exchange rates in the foreign market. The aim of dumping is to gain a competitive advantage and increase market share in the foreign market. However, it can harm domestic producers and create trade disputes between countries.

Question 20

Duty orders generally remain in place until:

Accepted Answer

Duty orders typically remain in effect until the importer can demonstrate compliance with fair market value pricing over a sustained period, which is often defined as three consecutive years.

Quiz 22: The International Legal Environment of Business

If an anti-dumping order is issued against a good, the manufacturer of that good:

"Dumping" is the practice of:

To respond to claims of dumping in U.S. markets, or foreign government subsidies for production, the International Trade Commission (ITC) may:

In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

Gables purchased used Mercedes from a German company. The cars were built for the German market and met its safety and pollution requirements. Gables hoped to sell the cars in the U.S., and so shipped them to New York. Upon reaching Customs, the cars will:

In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

Gables purchased used Mercedes from a German company. The cars were built for the German market and met its safety and pollution requirements. Gables hoped to sell the cars in the U.S., and so shipped them to New York. Upon reaching Customs, the cars will:

The U.S. bans a number of products from entering the country. These products include:

To respond to claims of dumping in U.S. markets, or foreign government subsidies, the International Trade Commission (ITC) may:

Which of the following items are banned from being imported into the U.S.:

Dumping is:

A foreign trade zone is a(n) :

Duty orders generally remain in place until:

"Dumping" is the practice of:

A foreign trade zone is a(n) :

When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:

The U.S. standardizes the way in goods are classified by customs officials by using a(n) :

Dumping is:

Duty orders generally remain in place until: