You have sought out articles explaining trade policies between the United States and the countries on your potential export list. You are particularly focused on the effect of tariffs. Which of the following actions would you potentially take due to increasing tariffs by one of these countries?

a. Immediately ship as many tractors and combines as possible to the country, as the tariff limits the amount of farm equipment that can be sold to that country in any given year. Once that limit is met, no more farm equipment will be allowed in.

b. Lower your price on the farm equipment to account for the tariff and remain price competitive with domestically manufactured farm equipment.

You are evaluating three possible methods of entry into the international market. The Board of Directors agrees with your decision to expand, but wants to make sure that you are able to maintain complete control of the business operations in the new market. The option that best meets this stipulation is:

a. Licensing to a franchise to distribute your products.

b. Forging a joint venture with a foreign company.

c. Creating a foreign division to distribute your products.

After looking at international trade agreements, you discover that both the United States and Canada signed the North American Free Trade Agreement (NAFTA) and Asia-Pacific Economic Cooperation Forum (APEC). This is important to your company because:

a. Economic communities increase the flow of international trade between countries.b. Economic communities reduce trade barriers such as quotas and tariffs.c. Economic communities promote peaceful relationships between countries.d. Economic communities provide mutual defense pacts between members should regional military conflicts arise

One worry you have about expanding internationally is the economic stability of each country. While the countries you are currently analyzing are very stable, you also wonder about expanding into countries that are growing quickly and have a large agriculture industry. This includes countries such as Brazil and Argentina, which despite strong growth have faced some systemic economic problems in the last few years. If one of the countries you are considering experiences a severe economic crisis, which organization could assist in stabilizing the country's economy?

a. The IMF

b. The WTO

c. The World Bank

You noticed in one article that Australia is threatening to impose tariffs on imports of farm machinery from the United States. Which of the following are positive impacts Australia might realize if those tariffs are imposed:

a. United States farm machinery will no longer be available in Australia.

b. The quality of Australian farm machinery will increase because they will not have to compete with imports from the United States.

c. Australian farm machinery manufacturers will be more cost competitive with machinery imported from the United States.

d. The export of Australian farm machinery to the United States will increase, helping Australia's economy.

When reviewing the fluctuation in exchange rates, you notice that in 2016 the Australian dollar was worth more than the U.S. dollar. By the end of 2017, the Australian dollar was worth less than the U.S. dollar. Which of the following statements is true based on this change? Check all that apply.

a. Your equipment is cheaper for Australian customers to purchase at the end of 2017 than in 2016.b. Exports from Australia to the United States will likely increase at the end of 2017.c. Your equipment is more expensive for Australian customers to purchase at the end of 2017 than in 2016.d. Exports from the United States to Australia will likely increase at the end of 2017

Your local congressman is really excited to hear that you have agreed to start exporting your products to foreign markets. Just to make sure you don't get cold feet on these expansion plans, he reminds you of the benefits of exporting. What of the following are some of those benefits?

a. An increase in consumer choices in the exporting country.b. Increased customer base for the exporting company.c. An increase in jobs in the exporting country.

d. Companies in the exporting country gain access to overseas natural resources.

c. Find an alternative country that doesn't have a tariff, as tariffs will prevent you from exporting any farm equipment to this country.

d. Research how much farm machinery each country exports, as the amount of allowed imports is tied to the amount of exports.