MGTREVIEWER

Tariff rate quotas?

• quotas on trade imposed by the exporting country, typically at the request of the importing country’s government

• the extra profit that producers make when supply is artificially limited by an import quota

• a hybrid of a quota and a tariff where a lower tariff is applied to imports within the quota than to those over the quota

• restrict the quantity of some good that may be imported into a country

_________________ is defined as the sale of products and services in foreign countries that are sourced or made in the home country.

• licensing

• Exporting

• Import Quotas

• customer value

____________ - concerned with boosting the overall wealth of a nation – benefits both producers and consumers

• Economic arguments

• Protecting jobs

• Antidumping Policies

• Political arguments

An international business__________ agreement involves two firms from different countries, with the licensee receiving the rights or resources to manufacture in the foreign country. Rights or resources may include patents, copyrights, technology, managerial skills, or other factors necessary to manufacture the good.

• licensing

• exporting

• importing

• permit

_______________________ may limit a firm’s ability to serve a country from locations outside that country

• Helms-Burton Act

• D’Amato Act

• Administrative Policies

• Voluntary export restraints (VERs)

many nations are nominally committed to __________, but intervene to protect the interests of politically important groups

• continuous production

• customer value

• globalization of media

• free trade

Subsidies?

• government payments to domestic producers

• taxes levied on imports that effectively raise the cost of imported products relative to domestic products

• increase government revenues

•  

  reduce the overall efficiency of the world economy

Local Content Requirements 

• the extra profit that producers make when supply is artificially limited by an import quota

• quotas on trade imposed by the exporting country, typically at the request of the importing country’s government

•  demand that some specific fraction of a good be produced domestically

• bureaucratic rules designed to make it difficult for imports to enter a country

What is foreign direct investment?

 

 

• the establishment of a wholly new operation in a foreign country

• occurs when a firm invests directly in new facilities to produce and/or market in a foreign country

• multinational enterprise

• Acquisition or merging with an existing firm in the foreign country

___________ - international production should be distributed among countries according to the theory of comparative advantage

• radical view

• free market view

• eclectric paradigm

• pragmatic nationalism