Question : 11.Which of the following true about import controls? a.Nontariff barriers like : 1318258

 

11.Which of the following is true about import controls?

a.Nontariff barriers like voluntary restraint agreements are self-imposed restrictions and cutbacks aimed at avoiding punitive trade actions from the host.

b.Import controls generally exact a small price from domestic consumers.

c.The social cost of import controls benefits the economy in all situations.

d.Import controls improve the productivity of an industry, provide it with a level of safety and a cushion of increased income, and lead the drive for technological advancement.

12.Which of the following is NOT considered a political risk?

a.Deflation

b.Tariffs

c.Expropriation of assets

d.Restriction in repatriation of profits

13.In the United States, the _____ excludes from antitrust prosecution those firms that are cooperating to develop foreign markets.

a.Gramm-Leach-Bliley Act

b.Sarbanes-Oxley Act

c.Webb-Pomerene Act

d.Celler-Kefauver Act

14.Events caused by factors outside the control of government include all of the following EXCEPT:

a.confiscation.

b.strikes.

c.extortion.

d.revolution.

15.The seizure of foreign assets by a government with payment of compensation to owners is known as _____.

a.asset forfeiture

b.misappropriation

c.expropriation

d.dissolution

16._____ results in a transfer of ownership from the foreign firm to the host country without providing compensation for the firm.

a.Defalcation

b.Injunction

c.Confiscation

d.Structuring

17.Which of the following is true about expropriation?

a.Its use as a policy tool has increased significantly over time.

b.It does not provide compensation to the former owners.

c.It immediately transfers a certain amount of wealth and resources from foreign

companies to the host country.

d.It provides satisfactory settlements and thus encourages foreign firms to invest in the country.

18._____ occurs when a government demands partial transfer of ownership and management responsibility and imposes regulations to ensure that a large share of the product is locally produced and a larger share of the profit is retained in the country.

a.Injunction

b.Defalcation

c.Domestication

d.Structuring

19.Which of the following is true about domestication?

a.It imposes regulations to ensure that no profits are retained by the host country.

b.It results in inefficiencies due to lack of market discipline, and thus affects the international competitiveness of operations abroad.

c.It results in total ownership and total management responsibility being conferred on the host country.

d.It imposes regulations to ensure that all high-end products are locally produced while all low-end products are produced by the host country.

0.Confiscation differs from domestication in that confiscation:

a.does not involve transfer of ownership from the foreign firm to the host country.

b.offers compensation in the form of local, nontransferable currency.

c.does not provide compensation to the foreign firm.

d.provides compensation on the book value of the firm.

 

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