Question 1

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a(n)

Accepted Answer

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a quota.

Question 2

There are __________ World Trade Organization countries, including the United States, which account for more than 90 percent of world trade.

Accepted Answer

The World Trade Organization (WTO) has 164 member countries as of 2023, which includes the United States and accounts for more than 90 percent of world trade.

Question 3

The European Union (EU) in early 2016 consisted of 28 countries with more than 500 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is not a member of the EU?

Accepted Answer

Switzerland is not a member of the European Union.

Question 4

The World Trade Organization (WTO) refers to

Accepted Answer

The World Trade Organization (WTO) is an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. Its primary purpose is to facilitate free and fair trade between member nations.

Question 5

U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because

Accepted Answer

Both countries have imposed tariffs on imported goods to protect their domestic markets, thus increasing the cost of the products for consumers.

Question 6

Whirlpool asked the United States to impose __________ on washing machine imports made by LG Electronics and Samsung Electronics, both South Korean companies, to raise the price of these products. Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments, both of which could jeopardize American jobs.

Accepted Answer

Whirlpool requested the United States to impose tariffs on washing machine imports made by LG Electronics and Samsung Electronics.

Question 7

An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the

Accepted Answer

The World Trade Organization (WTO) is an institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions. The other options mentioned in the question either do not exist or are not trade-related organizations.

Question 8

The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

Accepted Answer

Tariffs are taxes imposed on imported goods by a country's government. In this case, the European Union countries imposed a tariff on imported bananas, which resulted in higher prices for consumers. The other options (boycotts, quotas, sanctions, subsidies) do not refer to taxes or levies imposed on imported goods.

Question 9

A quota refers to

Accepted Answer

A quota is a restriction placed on the amount of a product allowed to enter or leave a country. It may limit the quantity of imports, exports, or both. Quotas are used as a protective measure to shield domestic industries from foreign competition, and to control the balance of trade.

Question 10

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

The major industrialized nations of the world formed the WTO in 1995 to address an array of world trade issues.The 162 WTO member countries,including the United States,account for more than 90 percent of world trade.The WTO is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.

Question 11

Recently, the Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. These taxes Japan levied are referred to as

Accepted Answer

The taxes Japan levied on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China are referred to as tariffs. A tariff is a tax levied on imported goods by the government of the importing country.

Question 12

The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of __________ established by the U.S. government.

Accepted Answer

The business moved to Mexico because of quotas established by the U.S. government, which placed limitations on the amount of sugar that could be imported into the country. By moving to Mexico, the business was able to bypass these restrictions and access cheaper sugar.

Question 13

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

The WTO was established in 1995 by major industrialized nations to address global trade issues and facilitate international trade agreements.

Question 14

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

The statement that the WTO uses panels of trade experts who can issue binding decisions is most accurate. The other statements are not correct: A) the WTO was formed in 1995, not 2008; B) the WTO has 164 member countries, not 12; C) the WTO does not license negotiations, but rather provides a forum for negotiating and resolving trade disputes; E) the WTO is an independent organization, not formed by the United Nations.

Question 15

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Accepted Answer

A tariff is a tax on imported goods, which is levied by the government to protect domestic industries by making foreign products more expensive. In this case, the business importing amber jewelry from Latvia to the United States would have to pay a tariff of roughly 11 percent of the value of the product to the U.S. Customs Service.

Question 16

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

The most accurate statement about the WTO is that it is an institution that sets rules governing trade between its members. While the WTO does facilitate trade negotiations between its members and the rest of the world, it is not an agent in these negotiations. The WTO also represents more than 98 percent of world trade, not just 55 percent as stated in option C. The WTO panels do issue nonbinding recommendations, as stated in option D. Finally, while the United Nations does work closely with the WTO, it did not form the organization.

Question 17

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Accepted Answer

The statement that there are 160 WTO member countries, including the United States, which account for more than 90 percent of world trade is the most accurate. The WTO was actually formed in 1995, and it sets rules governing trade between member and nonmember countries. The WTO does use panels of trade experts, but their recommendations can be binding. Finally, the WTO is not part of the United Nations, but it does have formal ties with the UN.

Question 18

President Bill Clinton attempted to protect American firms from foreign competition by placing a government tax on Japanese automobiles imported to the United States. President Clinton's goal was to raise the price on Japanese imports, thereby encouraging American consumers to purchase American-made automobiles. The tax the president threatened to impose is an example of a

Accepted Answer

The tax imposed by President Clinton on Japanese automobiles is an example of a tariff, which is a tax placed on imported goods to raise their price and make them less competitive in the domestic market. This was intended to encourage American consumers to buy American-made automobiles instead.

Question 19

The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Accepted Answer

The European Union currently has 28 member countries.

Question 20

Italy currently has a limit on the number of motorcycles that can be imported from Japan. This restriction would be considered a(n)

Accepted Answer

The restriction on the number of motorcycles that can be imported from Japan is a quantity-based trade barrier known as a quota. This is a form of protectionism used by governments to limit the quantity of a certain good or service that can be imported into their country in order to protect domestic industries from foreign competition. Tariffs are taxes imposed on imported goods, excise taxes are taxes on specific goods or services, subsidies are financial incentives provided by governments to support domestic industries, and trade imbalance refers to a situation where a country imports more goods than it exports.

Quiz 7: Understanding and Reaching Global Consumers and Markets

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a(n)

There are __________ World Trade Organization countries, including the United States, which account for more than 90 percent of world trade.

The European Union (EU) in early 2016 consisted of 28 countries with more than 500 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is not a member of the EU?

The World Trade Organization (WTO) refers to

U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because

An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the

The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.

A quota refers to

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Recently, the Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. These taxes Japan levied are referred to as

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Which of the following statements about the World Trade Organization (WTO) is most accurate?

If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service a government tax of roughly 11 percent of the value of the product as

Which of the following statements about the World Trade Organization (WTO) is most accurate?

Which of the following statements about the World Trade Organization (WTO) is most accurate?

The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.

Italy currently has a limit on the number of motorcycles that can be imported from Japan. This restriction would be considered a(n)