Questions for chapter 3 review

1. What is it called export and import? and what are the seller and buyer called in that case?
2. What is re-export and how is it different from transit?
3. How can export contribute to the implementation of the principle of economy of production scale?
4. Explain Vernon’s international product life cycle?
5. What are the various methods of export?
6. What are the difficulties faced when starting to supply goods to the market of another country?
7. How important are exchange rate fluctuations in exporting?
8. What are the main export market criteria?
9. What are the various sales channels in international trade and how do they differ?
10. What is the role of intermediaries in international trade?
11. What is the risk in international trade due to mutual trust? Also, explain why there is a risk involved in it?
12. What are the payment methods for goods in international trade?
13. What kind of risks are involved in prepayment and who has to face it?
14. What are tariff and non-tariff restrictions on international trade? Explain the difference and similarities between them.
15. What is the difference between export and import restrictions? What are their reasons?
16. What is an absolute restriction on international trade? Give examples.
17. What is a conditional or quota restriction on international trade?
18. How do tariff restrictions on imports affect domestic consumers? How local producers get affected?
19. What is a voluntary trade restriction?
20. What is the purpose of trade liberalization?
21. What was negotiated in Uruguay talks and what were their main results?
22. Explain the reason and purpose of trading blocs. Give its examples?
23. What are the types of blocs of states depending on the level of integration, how do they differ?
24. How is the relation between size of the country and its dependence on export?

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