Question

QUESTION 8

1. Firms engage in horizontal integration

	a.	to ensure the quality of goods that reach the consumer.
	b.	to gain more control of raw materials that will assist their production.
	c.	to defend or increase their market share.
	d.	to limit government scrutiny of their activities.

  

QUESTION 9

1. After trade has opened up, the gains that trade brings to consumers of the imported goods are, in absolute value,
   
   
   
   
   

	a.	Larger than the losses to domestic producers of that good.
	b.	Smaller than the losses to domestic producers of that good.
	c.	Exactly equal to the losses to domestic producers of that good.
	d.	Immeasurable.

  

QUESTION 10

1. Transfer prices are

	a.	prices that MNCs transfer on to the consumer.
	b.	prices MNCs charge for the sale of goods and services to other MNCs..
	c.	prices that MNCs charge to host states.
	d.	prices an MNC’s affiliates charge for the internal sales of goods and services

QUESTION 11

1. Which of the following is not a part of the WTO’s stance on trade?
   
   
   
   
   

	a.	Any trade barrier that reduces greenhouse-gas emissions is permissible.
	b.	Tariffs that are implemented to conserve natural resources must not be used merely to shut out foreign goods.
	c.	Any tax on imports must not exceed that on import competing products.
	d.	Freer import policy for the cleanest foreign country must be matched by freedom of imports for polluter countries.

  

QUESTION 12

1. The WTO permits a state to impose Countervailing Duties (CVDs)

	a.	if another state provides trade-distorting subsidies that produce or threaten material injury to its domestic producers.
	b.	if another state provides trade-distorting subsidies that produce or threaten serious injury to its domestic producers.
	c.	if foreign goods are dumped, and the dumping causes or threatens material injury to its domestic producers.
	d.	if foreign goods are dumped, and the dumping causes or threatens serious injury to its domestic producers.

Answer 1

QUESTION 9

1. After trade has opened up, the gains that trade brings to consumers of the imported goods are, in absolute value,
   
   

a.

Larger than the losses to domestic producers of that good.

Trade leads to increase in total welfare in the country.

QUESTION 10

1. Transfer prices are

	d.	prices an MNC’s affiliates charge for the internal sales of goods and services

Transfer pricing happens whenever two companies that are part of the same multinational group trade with each other

Please post other questions separately

answered by: anonymous