Question 1

Dumping is:

Accepted Answer

Dumping refers to selling goods in foreign markets at a lower price than in the home market. This is often done to capture a larger market share in the foreign market or to get rid of excess inventory. It is considered unfair trade practice as it can harm domestic producers in the foreign market.

Question 2

"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 3

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 the case should be reevaluated in the Court of Appeals using the Skidmore standard, which considers the expertise and persuasiveness of the agency's decision rather than giving it deference as equivalent to federal law. This decision limited the power of Customs and other agencies to make unilateral decisions and required them to provide supporting evidence and reasoning for their decisions.

Question 4

Goods in a foreign trade zone may be:

Accepted Answer

Goods in a foreign trade zone may be processed, assembled, warehoused, or any other specific choices allowed by the government regulations. Therefore, all of the other specific choices are correct.

Question 5

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.

Question 6

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

Accepted Answer

Narcotics are explicitly banned from entering the country due to their illegal nature and potential harm to individuals and society at large. The other options are not universally banned and may only be subject to certain restrictions or regulations.

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

Dumping is:

Accepted Answer

The answer of Dumping is:
...

Question 9

A foreign trade zone is a(n):

Accepted Answer

A foreign trade zone is a designated geographical area within a country's borders where goods can be imported without paying tariffs. It was established to promote international trade and boost the economic activity of the country.

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

The best choice would be to impose a tariff on goods coming into the U.S. to eliminate the value of the subsidy. This would level the playing field for domestic producers who are not receiving such subsidies and prevent foreign companies from flooding the U.S. market with products that are unfairly priced due to government support. Increasing import tariffs on products that are being "dumped" in Third World markets (A) or imposing import restrictions at the sole discretion of the ITC chairman (E) are not necessarily the most effective or appropriate responses to the issue of foreign government subsidies. Exempting products from customs duties if the country of origin is attempting to decrease pollution (B) or allowing "experimental" imports to enter duty-free until a market in the U.S. has been established (C) are also not relevant to the issue of dumping or subsidies.

Question 12

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 13

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 defer paying duties until the assembled bicycles leave the zone. This can reduce costs and improve the company's competitiveness. The other options listed are not relevant or applicable to the situation described.

Question 14

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

Accepted Answer

The manufacturer of the good must pay an antidumping duty if an anti-dumping order is issued against their product. They are not required to remove the product from the U.S. market or reimburse affected U.S. manufacturers directly.

Question 15

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 from a foreign country must meet the safety and pollution control requirements for cars in the US before they are allowed to pass through Customs. Since the cars purchased by Gables were built for the German market, they may not meet these requirements and may need to undergo modifications before they can be sold in the US.

Question 16

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 17

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 18

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 dumping tariff restriction. However, if the complaint is found to be valid, the WTO can authorize the complaining nation to impose countermeasures, such as tariffs or quotas, against the dumping nation to offset the harm caused by the unfair trade practice. The ultimate goal is to encourage the dumping nation to remove the restriction voluntarily in order to avoid the negative consequences of the countermeasures.

Question 19

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

Accepted Answer

The options presented in the question do not accurately reflect the actions that the International Trade Commission (ITC) can take in response to claims of dumping or foreign government subsidies. The ITC's role is to investigate and make recommendations to the U.S. government, which may ultimately decide on actions such as imposing tariffs or other trade remedies. The specific actions taken would depend on the results of the investigation and the decision-making process of the U.S. government.

Question 20

"Dumping" is the practice of:

Accepted Answer

Dumping refers to a situation where foreign companies sell their products in the U.S. market at prices lower than the prices at which they sell the same products in their own domestic markets. This is often done to gain a competitive edge over the domestic producers and capture a larger market share, and is considered a form of unfair trade practice.

Quiz 22: The International Legal Environment of Business

Dumping is:

"Dumping" is the practice of:

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:

Goods in a foreign trade zone may be:

Duty orders generally remain in place until:

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

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:

Dumping is:

A foreign trade zone is a(n) :

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

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:

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

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:

Duty orders generally remain in place until:

A foreign trade zone is a(n) :

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

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

"Dumping" is the practice of: