Question 1

A nontariff barrier (NTB)is a hidden trade barrier which is a deterrent or obstacle to the sale of products in a foreign market.

Accepted Answer

This is the correct definition of a nontariff barrier. It refers to any trade barrier that is not a tariff or tax, but still restricts or affects international trade. Examples include quotas, technical standards, and licensing requirements.

Question 2

It was found by research that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements,payment procedures,and regulations.

Accepted Answer

According to the statement, it is true that even experienced exporters express lack of confidence in their knowledge about shipping arrangements, payment procedures, and regulations.

Question 3

When Honda's U.S.manufacturing subsidiaries purchase parts from Japan,customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.

Accepted Answer

Customs authorities in the United States have the right to scrutinize transfer prices to ensure they reflect fair market value.

Question 4

Switzerland exports 51 percent of their GDP,compared to the United States which exports only 14 percent.

Accepted Answer

The answer of Switzerland exports 51 percent of their GDP,compared...

Question 5

Potential export problems include packaging,government red tape,warehousing,advertising,and trade restrictions.

Accepted Answer

Potential export problems can indeed include packaging issues, government regulations and procedures, warehousing challenges, advertising difficulties, and trade restrictions imposed by either the exporting country or the importing country.

Question 6

According to the recent import regulations in the United States,action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualified for lower duties than human figures that are classified as dolls.

Accepted Answer

This statement is true. In 2019, the United States Trade Representative (USTR) updated the Harmonized Tariff Schedule to differentiate between toys and dolls. Non-human action figures are classified as toys while human figures with realistic features are classified as dolls and face higher duties.

Question 7

Tariffs can be thought of as the "three R's" of global business: rules,rigor,and regulations of individual countries.

Accepted Answer

Tariffs are taxes imposed on imported goods and services, not the rules, rigor, and regulations of individual countries.

Question 8

The four tigers-Singapore,South Korea,Taiwan and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

Accepted Answer

The statement is true. The four tigers followed in the footsteps of Japan and developed export-oriented economies, which helped them achieve rapid economic growth and development.

Question 9

Representatives of the apparel,footwear,and textile industries in many countries are deeply concerned about the impact increased trade with China will have on these sectors.

Accepted Answer

The statement clearly states that representatives of the mentioned industries are worried about the consequences of increased trade with China.

Question 10

The Harmonized Tariff System (HTS)has eliminated virtually all problems associated with assigning tariff classifications to new products.

Accepted Answer

While the HTS provides a standardized system for assigning tariff classifications, there may still be challenges in accurately classifying new and complex products.

Question 11

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Accepted Answer

The Common Agricultural Policy (CAP) is a policy of the European Union and only applies to farmers within the EU. It does not determine the level of subsidies granted to farmers in Latin America or any other region outside of the EU.

Question 12

The Fly American Act is an example of a nontariff barrier.

Accepted Answer

The Fly American Act requires all federal agencies to use American-made airlines for air transportation, which can limit competition from foreign airlines and thus acts as a nontariff barrier to trade.

Question 13

The terms "export selling" and "export marketing" are interchangeable.

Accepted Answer

Export selling refers specifically to the sales aspect of exporting, while export marketing encompasses a broader range of activities including researching and analyzing foreign markets, adapting products to meet local needs, and developing promotional strategies.

Question 14

The Harmonized Tariff System (HTS)is currently the dominant system for determining the correct classification number.

Accepted Answer

The Harmonized Tariff System (HTS) is currently the dominant system for determining the correct classification number for goods being imported or exported.

Question 15

In an effort to facilitate exports,countries are designating certain areas as "free trade zones" (FTZ)or "special economic zones" (SEZ).

Accepted Answer

Free trade zones and special economic zones are designated areas that aim to promote exports by offering various incentives and benefits to businesses operating within their boundaries. These may include tax breaks, streamlined customs procedures, and relaxed labor laws, among other things. By creating a more business-friendly environment, countries hope to attract foreign investment and stimulate economic growth.

Question 16

An ad valorem duty is expressed as a percentage of the value of goods.

Accepted Answer

An ad valorem duty is a tax that is levied as a percentage of the value of the goods being imported or exported.

Question 17

The Buy American Act of 1933,which stipulates that U.S.federal agencies must buy articles produced in the United States unless domestically produced goods are not available,is an example of discriminatory procurement policies.

Accepted Answer

The Buy American Act of 1933 requires federal agencies to give preference to domestically produced goods, which is a form of discriminatory procurement policy.

Question 18

After the research effort has zeroed in on potential markets,there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export marketing program.

Accepted Answer

Personal visits are crucial to gather important information about the market, its culture and competition. It also helps in building relationships with potential buyers and distributors, and creating a localized marketing plan.

Question 19

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

Accepted Answer

"Export selling" does not typically involve tailoring products or marketing efforts to suit foreign markets; it involves selling the same product as is. Tailoring products for global markets is more aligned with "export marketing."

Question 20

Tax incentives,subsidies,export assistance,and free trade zones are common support provided by governments to firms that engage in exporting.

Accepted Answer

Tax incentives, subsidies, export assistance, and free trade zones are all commonly provided by governments as support for firms involved in exporting.

Quiz 8: Importing,exporting,and Sourcing