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46) In most cases, which type of government protection assistance is most controversial? A) business development services B) foreign business contactsC) trade expositionsD) tariffs Answer: DDiff: 2Learning Outcome: Discuss arguments for and against government intervention in international businessSkill: ConceptObjective: 447) Tied aid requires a recipient to ________. A) donate a portion of the funds to the donor country's infrastructure needsB) use the capital in any way as long as donor country approval is grantedC) employ local workers in management positions D) spend the funds in the donor countryAnswer: DDiff: 2Learning Outcome: Define the fundamental concepts of international businessSkill: ConceptObjective: 448) Most countries have agreed on how to assess values when their customs agents levy tariffs. Which of the following best expresses this agreement?A) They should use the value of similar goods arriving at about the same time.B) They should use the declared invoice price unless they doubt its authenticity.C) They should assess a value based on local costs to produce a similar product.D) They should assess a value based on the expected final consumer sales price.Answer: BDiff: 2Skill: ConceptObjective: 4
49) In international trade, what is a quota?A) a guarantee by one country to buy some minimum amount from anotherB) a quantitative limit on the amount of a product that can be imported or exportedC) a countertrade arrangement that establishes the value of imports and exportsD) a bilateral agreement calling for mutual access to marketsAnswer: BDiff: 1Skill: ConceptObjective: 450) A voluntary export restriction (VER) refers to ________.A) an agreement between two countries to reciprocally restrict exports to one anotherB) requests by governments for companies to limit exports of militarily useful technologyC) limits companies' exports to increase domestic suppliesD) limits placed on exports by a government of an exporting country at the request of the government of an importing countryAnswer: DDiff: 1Skill: ConceptObjective: 451) An import license is ________.A) an agreement whereby one country gives another country permission to use a patent that a company has registered thereB) a requirement that exporters take merchandise in lieu of money as payment for their salesC) a requirement that permission be secured from governmental authorities before importation can be undertakenD) a government prohibition of imports from a specific countryAnswer: CDiff: 1Skill: ConceptObjective: 4