Author Question: Which of the following is an example of a price control? a. increasing the prices of imports to ... (Read 63 times)

littleanan

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Which of the following is an example of a price control?
 a. increasing the prices of imports to match minimum prices of domestic imports
  b. antidumping and countervailing duty actions designed to counter unfair competition
  c. paratariff measures
  d. all of the above are examples of price controls

Question 2

The location of production facilities determines
 a. The extent to which companies can control costs.
  b. The extent to which companies price their products competitively.
  c. Whether the company can benefit from advantageous exchange rates.
  d. All of the above.



jgranad15

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Answer to Question 1

D
All of these measures are used as means for price controls.

Answer to Question 2

D
The location of production facilities determines the extent to which companies can control costs and price their products competitively. Multinationals usually can afford to shift production to take advantage of lower costs and exchange rates, whereas small to medium-size firms are often limited to exporting as the only venue for product distribution. Companies can and often do price themselves out of the market in certain countries, especially if they do not shift production to a low-labor-cost, low-tax country. This appears in the Production Facilities section (16-1a).



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