Which of the Following Is Common to Both Tariffs and Quotas

question 131

Multiple Choice

Which of the following is common to both tariffs and quotas?

• A)Tariffs and quotas are both used as a means to increase government revenue.
• B)Tariffs and quotas both increase economic efficiency.
• C)Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms.
• D)Tariffs and quotas are both examples of voluntary export restraints.

Grasp the impact of international agreements like NAFTA on global trade and economic integration.

Recognize the significance of cultural dimensions, including power distance and individualism vs. collectivism, in international business.

Learn about the practice of guanxi in Chinese culture and its role in business.

Identify the characteristics of transnational organizations and their influence on globalization.

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Definitions:

External Failure Cost

Expenses related to products or services not meeting quality expectations post-delivery, encompassing returns, fixes, and warranty requests.

Quality Cost Report

A document that summarizes the costs associated with preventing, detecting, and correcting defective work, typically classified into prevention, appraisal, and failure costs.

Warranty Period

The specified time period during which a manufacturer or seller is obligated to repair or replace a product if it has defects.

Appraisal Cost

Expenses related to the evaluation and inspection of materials and products to ensure quality standards are met.