Diff: 2Skill: ConceptObjective: 4104) Why are nonquantitative, nontariff barriers more difficult to eliminate than tariffs and quotas?105) What types of regulatory controls can governments use to create nontariff barriers?106) What effect do subsidies have on international trade? Do you think subsidies are appropriate and effective? Why or why not?
107) What is a foreign trade zone? Why are FTZs formed?Answer: A foreign trade zone is a geographic area where imported or exported goods receive preferential tariff treatment. FTZs are used by governments worldwide to spur regional economicdevelopment.Diff: 3Skill: ConceptObjective: 5Learning Outcome: Discuss arguments for and against government intervention in international business108) What types of unfair trade practices do organizations like the International Trade Commission focus on?109) What is the Eximbank? What is its purpose?110) How does the United States handle complaints of unfair trade?111) How is a countervailing duty determined?Answer: A countervailing duty is an ad valorem tariff on an imported good that is imposed by the importing country to counter the impact of foreign subsidies. It is calculated to just offset the advantage the exporter receives from the subsidy.