Question :
61. (p. 536) Which of the following true about free trade zones (FTZs)? A. In : 1242164
61. (p. 536) Which of the following is true about free trade zones (FTZs)?
A. In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country.
B. More than 500 FTZs operate throughout the world, processing imported goods.
C. An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned.
D. When an item leaves an FTZ and is imported officially into the home country of the FTZ, all duties and regulations are imposed.
E. Utilizing FTZs typically control price escalation resulting from the layers of taxes, duties, surcharges, and freight charges.
62. (p. 537) Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?
A. Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
B. Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
C. Declare components as obsolete inventory with no market value to lower import duties.
D. Tariffs may be lower because duties are typically assessed at a lower rate for unassembled versus assembled goods.
E. Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
63. (p. 537) Identify a way by which a company can lower costs by shipping unassembled goods to an FTZ in an importing country.
A. Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
B. If labor costs are lower in the importing country, substantial savings may be realized in the final product cost.
C. Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
D. Declare components as obsolete inventory with no market value to lower import duties.
E. Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
64. (p. 537) A company can lower costs by shipping unassembled goods to an FTZ in an importing country through which of the following ways?
A. Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
B. Declare components as obsolete inventory with no market value to lower import duties.
C. Ocean transportation rates are affected by weight and volume; unassembled goods may qualify for lower freight rates.
D. Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
E. Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
65. (p. 537) One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international arena:
A. below the cost of production.
B. to only those that can pay for it.
C. to get rid of excess supply.
D. to get rid of old or useless merchandise.
E. to rid the domestic market of potentially harmful substances and products.
66. (p. 537-538) What is the function of a countervailing duty?
A. To balance revenues against costs.
B. To restrict the amount a country will import.
C. To provide revenues for someone who uses parallel imports as a growth strategy.
D. To expand the amount a country will import.
E. To permit the use of foreign currency within the country.
67. (p. 537-538) A ____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation.
A. trigger volume
B. trigger price
C. minimum access volume
D. market access opportunity
E. substantial cause
68. (p. 538) For _____ duties to be invoked, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping.
A. countertrade
B. domestic protection
C. countervailing
D. foreign practices
E. import restriction
69. (p. 538) In a classic case of dumping, prices are _____ in the home-country market and _____ in foreign markets.
A. increased; sustained
B. sustained; increased
C. maintained; reduced
D. increased; reduced
E. reduced; increased
70. (p. 538) Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as _____ plants.
A. antidumping
B. screwdriver
C. importing
D. exporting
E. free labor
