Protectionism and Trade Policy Quiz

<p>They are believed to create more demand for local goods (A)</p> Signup and view all the answers

<p>To ensure national security (B)</p> Signup and view all the answers

<p>Encouragement of free trade (B)</p> Signup and view all the answers

<p>Imposition of stricter trade restrictions as retaliation (D)</p> Signup and view all the answers

<p>It has gained traction again (D)</p> Signup and view all the answers

<p>It leads to increased foreign wealth. (C)</p> Signup and view all the answers

<p>Tariffs. (A)</p> Signup and view all the answers

<p>To increase the price of imported goods. (A)</p> Signup and view all the answers

<p>It encourages consumers to buy domestic goods. (C)</p> Signup and view all the answers

<p>It allows them to offer lower prices than foreign competitors. (B)</p> Signup and view all the answers

<p>Investment restrictions. (D)</p> Signup and view all the answers

<p>It can distort local market conditions. (D)</p> Signup and view all the answers

<p>They are taxes on foreign imports. (A)</p> Signup and view all the answers

<p>A method of foreign operation allowing use of resources provided by the licensor (A)</p> Signup and view all the answers

<p>Coca Cola (A)</p> Signup and view all the answers

<p>They involve multiple investors sharing ownership and control. (A)</p> Signup and view all the answers

<p>To outsource operational control to a more efficient firm (A)</p> Signup and view all the answers

<p>Constructing facilities and training personnel (D)</p> Signup and view all the answers

<p>Establishing new operations in a foreign country from scratch (B)</p> Signup and view all the answers

<p>They must source materials locally. (D)</p> Signup and view all the answers

<p>Acquisitions can include buying parts or entire companies. (A)</p> Signup and view all the answers

<p>Signing the agreement and enforcing it (D)</p> Signup and view all the answers

<p>Real estate (A)</p> Signup and view all the answers

<p>It may protect certain jobs but is harmful for the economy overall. (C)</p> Signup and view all the answers

<p>It allows firms to market goods produced in their home country. (A)</p> Signup and view all the answers

<p>It allows spending to shift to other markets, stimulating employment. (D)</p> Signup and view all the answers

<p>Import licenses may be restricted by the government. (B)</p> Signup and view all the answers

<p>Dictating the cost of imports by managing currency values. (B)</p> Signup and view all the answers

<p>Job protection in the local market. (B)</p> Signup and view all the answers

The restriction of international trade to benefit domestic industries.

Argue that new industries need protection until they become self-sufficient and can compete globally.

Claims that limiting imports creates more demand for local products and thus jobs.

Used to prevent the entry of products considered harmful to consumers.

Protectionist policies are used as retaliation against other nations perceived to have unfair trade practices.

Argues that a nation should be self-sufficient in key industries for national security reasons.

A global organization that sets rules for international trade and aims to reduce trade barriers.

A situation where countries are generally reluctant to import goods.

A tax imposed on foreign goods, leading to higher prices for consumers. This encourages consumers to buy domestically produced goods instead.

Restrictions on the quantity of goods and services imported over a certain period. These act as a barrier to international trade.

Financial aid granted by the government to domestic producers, making their products more competitive in the market.

Government policies restricting foreign companies from investing in a country's economy.

A country's monetary policy can create advantages or disadvantages for its exports. Devaluing a currency can make its goods cheaper abroad.

The potential negative impact on local economies if money flows out to foreign countries due to international trade, according to a protectionist argument.

The idea that a country's government can influence international trade through policies like taxes, subsidies, and regulations.

Government measures used to control the flow of goods and services into a country. Examples include tariffs, quotas, and subsidies.

A limit on the quantity of a specific good that can be imported into a country.

Financial assistance provided by the government to domestic producers, making them more competitive with foreign companies.

A policy that restricts the amount of foreign currency that can be bought or sold, potentially affecting import costs.

Rules and guidelines set by the government that must be followed when importing goods and services.

Requiring importers to obtain a license from the government before importing goods, which can be used to restrict trade.

A method where a firm in one country grants a company in another country the right to use its manufacturing, trademark, know-how, or other skills.

An enterprise where two or more investors share ownership and control of property rights and operations.

An arrangement where one company contracts another to manage its existing or new operations in exchange for a fee.

A project where a contractor designs, constructs, and trains personnel for a new facility, with the client only paying for the final outcome.

Acquiring an existing company in another country, which can involve buying the entire company, parts of it, or a significant portion for ownership rights.

Foreign direct investment (FDI) where a company establishes new operations in a foreign country from scratch, building new facilities.