I. True or False 1. Specifie tariffs are levied as a proportion of the value of
ID: 1131384 • Letter: I
Question
I. True or False 1. Specifie tariffs are levied as a proportion of the value of the imported good. 2. By lowering production costs, subsidies help domestic producers compete against foreign imports and gain export markets. 3. Historically, most FDI has been directed at the developed nations of the world as firms based in advanced countries invested in the markets of other advanced countries. 4. A major impediment to economic integration is the loss of sovereignty it entails. S. The value of a currency is determined by the interaction between the demand and the supply of that currency relative to the demand and supply of other currencies. 6. The exchange rates of all currencies are determined by the free play of market forces. 7. A lack of information about the fundamental quality of foreign s may encourage speculative flows in the global capital market 8. As competition intensifies, global standardization strategies and transnational strategies tend to become less viable, and managers need to orientate their companies strategy or a localization strategy. toward either an international 9. The merging of historically distinct and separate markets into one huge global marketplace is known as the globalization of markets. 10. Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople. II. Multiple Choices (Please choose the best SINGLE answer from the four choices marked A. B, Cand D) 1. The theory of involvement in promoting exports and limiting imports. makes a crude case for government B. free trade C. absolute advantage D. comparative advantage 2. Contrary to what the Heckscher-Ohlin theory would predict, the United States has been a primary importer rather than an exporter of capital goods. This phenomenon is referred to as the paradox. A. zero-sum B. Leontief C. empirical D. Ricardo 3. According to H- sant the extent toExplanation / Answer
Answer : l. 1) Specific tariffs are levied as a proportion of the value of the imported good. TRUE.
Specific tariff is an amount which is charged by the government on imported quantities. Example: $10 is charged on 1 kg imported dates .
2) By lowering production costs, subsidies help domestic producers compete against foreign imports and gain export markets. TRUE.
Subsidies increase the income of producers . According to given information subsidies decrease the production cost which leads to more production for export.
3) Historically, most FDI has been directed at the developed nations of the world as firms based in advanced countries invested in the markets of other advanced countries. TRUE.
4) A major impediment to economic integration is the loss of sovereignty it entails. TRUE.
By integration people loses their sovereignty.