internationalbusinesschapter6..docVIP

1.?(p.?206)?A situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country is known as free trade.?TURE ?2.?(p.?207)?Tariffs are unambiguously pro-consumer and anti-producer.?FALSE 3.?(p.?207)?Export tariffs are far less common than import tariffs.?TRUE 4.?(p.?207)?Specific tariffs are levied as a proportion of the value of the imported good.?FALSE 5.?(p.?208)?By lowering production costs, subsidies help domestic producers compete against foreign imports and gain export markets.?TRUE 6.?(p.?209)?Under a tariff rate quota, a higher tariff rate is applied to imports within the quota than those over the quota.?FALSE 7?(p.?210)?A common hybrid of a quota and a rent is known as a quota rent.?FALSE 8.?(p.?211)?Unlike other trade policies, local content regulations tend to benefit consumers and not producers.?FALSE 9.?(p.?211)?Requirements that some specific fraction of a good be produced domestically are known as local content requirements.?TRUE 10.?(p.?211)?Bureaucratic rules designed to make it difficult for imports to enter a country are local content requirements.?FALSE 11.?(p.?211)?A company that sells its product in a foreign market below the cost of production may be accused of dumping.?TRUE 12.?(p.?212)?Antidumping polices are designed to punish firms that are engaged in dumping.?TRUE? 13.?(p.?213)?Antidumping policies vary drastically from country to country.?FALSE? 14.?(p.?214)?The U.S. government has used the threat of punitive trade sanctions to try to get the Chinese government to enforce its intellectual property laws.?TRUE 15.?(p.?214)?Many governments have long had regulations to protect consumers from unsafe products.?TRUE 16.?(p.?216)?The Helms-Burton Act of 1996 was aimed at foreign companies that were undermining U.S. trade sanctions against Libya and Iran.?FALSE 17.?(p.?217)?The infant industry argument is the latest argument for government intervention in trade.?FALS