Government Influence on Trade

________ is a possible negative effect of MNEs on the host county economy as a result of competition with host country’s local firms.

• The loss of jobs

• Lower prices

• Increased product selection

• Increase quality of products

A(n) _____ is a tax placed on a good that is traded internationally.

• tariff

• quota

• export substitute

• import substitute

The_______ proposes that tariffs be imposed on imported manufactured goods to give domestic firms temporary protection from foreign competition until they could fully establish themselves.

• national defense argument

• infant industry argument

• industrial policy

• maintenance of existing jobs

A(n) _____________ is a geographic area where imported or exported goods for investment receive preferential tariff treatment in Thailand.

• duty free zone

• special economic zone

• fair trade zone

• economic incentive zone

Government agents set the price of imported goods too high to prevent importation is called as _______________.

• tied aid

• subsidies

• custom valuation

• administrative delay

What is not a reason countries hold service restrictions?

• Protect consumers from predatory behavior

• To ensure that service practices meet the qualified standard.

• Local people job loss protection

• Some service sector should not be sold for profits.

What is not the benefit from locating manufacturers in special economic zone in Thailand?

• Export money outside the country in the foreign currencies

• Hold land ownership in the industrial estate

• Export duty exemption

• Direct loans and loan guarantees

Country government issues policies to promote and influence international trade is called as ______

• fair trade

• protecting trade

• free trade

• policy trade

What is not the reason to collect the tariff?

• protecting the developing industry

• Gain the country income

• developing cross national collaboration

• Creating trade bargaining tool

Thailand limits foreign ownership to 49%. Of which nontariff barrier is this an example?

• currency controls

• restricted access to distribution networks

• quotas

• investment controls