Question :
61. (p. 39) Which of the following true regarding VERs? A. International regulatory bodies set : 1242191
61. (p. 39) Which of the following is true regarding VERs?
A. International regulatory bodies set export/import limits.
B. The importing sets the trade limits for import.
C. The exporting country sets the limits.
D. It is a common reaction to lenient tariffs and quotas by the importing country.
E. A VER is established in agreement with the importing country.
62. (p. 39) When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is called a(n):
A. boycott.
B. embargo.
C. tariff.
D. orderly market agreement.
E. currency block.
63. (p. 40) _____ is accomplished by refusing to allow importers to exchange its national currency for the seller’s currency.
A. Boycotted money
B. Embargoed capital
C. Blocked currency
D. Anti-banking
E. Cartel dissolution
64. (p. 40) In order to secure foreign exchange, which of the following is used by countries experiencing severe shortages of foreign exchange?
A. Import quotas
B. Government approval
C. Tariffs
D. Blocked currency
E. Differential exchange rates
65. (p. 40) Which of the following trade policy tools requires the importers who want to buy a foreign good to apply for an exchange permit?
A. Tariffs
B. Import quota
C. Blocked currency
D. Government approval
E. Export levies
66. (p. 40) Which of the following can the exchange permit stipulate?
A. The quantity of goods that can be exchanged for a particular sum of foreign currency
B. The number of parties that can be involved in an exchange transaction
C. The amount to be exchanged to be deposited in a local bank
D. The parties involved to declare collaterals to avail of exchange permits
E. The number of times one party can avail of exchange permits
67. (p. 41) Tall Pine Plywood Company has just received notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. This would be an illustration of which of the following nontariff barriers to trade?
A. Quota
B. Predatory pricing
C. Embargo
D. Boycott
E. Standards
68. (p. 41) The United States and other countries require some products (automobiles in particular) to contain a percentage of “local content” to gain admission to their markets. This is an example of the usage of _____ to restrict trade.
A. exchange permits
B. quotas
C. tariffs
D. standards
E. antidumping penalties
69. (p. 41) According to the information provided in the text, a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing is called:
A. quotas.
B. fees.
C. standards.
D. antidumping laws.
E. licenses.
70. (p. 41) _____ is the practice whereby a foreign producer intentionally sells their products in the United States for less than the cost of production to undermine the competition and take control of the market.
A. Basing point pricing
B. Offensive pricing
C. Defensive pricing
D. Counterpoint pricing
E. Predatory pricing
