Scenario 9

question 161

Multiple Choice

Scenario 9.3 Use the following to answer the questions.
The United States believes China is selling its steel products in the U.S. at unfairly low prices. For many years, domestic steelmakers have complained, saying that they cannot compete against the influx of Chinese steel entering the market. China denies that it is engaging in such behavior. However, the United States has announced that imports of Chinese steel products will now be more expensive-in some cases, by as much as 265.79%. American steelmakers believe this is the only way they will be able to compete against Chinese steel imports.
Refer to Scenario 9.3. According to the United States, what practice are Chinese steel importers engaging in that provides them with an unfair advantage?

• A) dumping
• B) quotas
• C) direct ownership
• D) exchange controls
• E) cultural relativism

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Definitions:

Interest-Rate Risk

The potential for investment losses due to fluctuations in interest rates.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.

Coupon Bond

A type of bond that pays the holder interest payments at fixed intervals until maturity, when the principal is repaid.