The Optimum Tariff Is Most Likely to Apply to

question 26

Multiple Choice

The optimum tariff is most likely to apply to

• A) a small tariff imposed by a small country.
• B) a small tariff imposed by a large country.
• C) a large tariff imposed by a small country.
• D) a large tariff imposed by a large country.
• E) an ad valorem tariff on a small country.

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Definitions:

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.

Greenfield Operation

A greenfield operation involves a company starting a new venture from the ground up in a foreign country, rather than purchasing or partnering with an existing local company.

Subsidiary Company

A company that is owned or controlled by another company, which is referred to as the parent company.

Licensing

A business agreement in which one party allows another to use its brand, patent, or technology for a fee or royalty.