The exports of Uruguay, a developing country, are made essentially of primary commodities. A comparison between export prices received by Uruguay and the price paid for its imports shows the following: on average export prices rose 40% between 2000 and 2010, while import prices went up by 150%. Index quantities exported by the country were Qx = 15 (in 2000), and Qx = 30 (in 2010).

Uruguay's income terms of trade (ITT) in 2000, was:

Group of answer choices

a. 100.

b. 1,680.

c. 2,000.

d. 250.

e. 1,500.

The U.S. Congress has decided that starting November 24, next year, all DVRs coming from Indonesia and Malaysia and entering the U.S. market will face tariff rates of respectively 50 percent and 75 percent. Such tariffs are what is known as a(n) ------ tariff or duty.

Group of answer choices

a. specific.

b. ad valorem.

c. compound.

d. quota.

e. all of the above.

The purpose of the Export Trading Company Act of 1982 was to:

Group of answer choices

a. finance U.S. exports by extending loans to foreign importers.

b. provide antitrust protection for U.S. companies interested in joint exporting. c. extend credit to exporting U.S. firms through the purchase of their account receivables.

d. provide a preferential tax treatment for U.S. companies importing from Central and South American countries.

e. offer training seminars to companies involved in import/export with Japan.

According to Knickerbocker's theory:

a. when a firm has valuable know-how that cannot be adequately protected by a licensing contract it engages in FDI.

b. when a firm's skills and know-how are not amenable to licensing, it usually prefers the FDI route.

c. by placing tariffs on imported goods, governments indirectly increase the cost of exporting relative to foreign direct investment and licensing.

d. when a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments.

The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. It specializes in a wide range of personal health/consumer health, personal care and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. To export these products to foreign countries, what type of license does this company need?

a. General export license.

b. Validated export license.