Assume that Denmark, a member of the European Union, is contemplating the enactment of a protective tariff for its fledgling CD industry due to domestic political and economic pressures. Assume further that the EU has a tariff that it has also enacted for all CD manufacturers within the EU that is considerably lower than the one that is being proposed in Denmark. The policy behind the lower EU
tariff is to promote freer trade even at the risk of destroying some of the weaker manufacturers in that organization. In this situation:
A) Denmark could enact the higher tariff since EU members give up no authority to the organization in regulating trade and business practices.
B) Generally, when EU economic policies and rules conflict with the laws of member nations, EU law will prevail. Thus, Denmark's tariff may be illegal.
C) Denmark could petition the United Nations Council of Economic Policy and if it concurs with Denmark, the EU tariff policy would be overridden.
D) Assuming Denmark is a signatory to WTO, it could retain its higher tariff since the purpose of WTO is to protect domestic industries by promoting higher tariffs.
B
You might also like to view...
Black Cow Company bought merchandise on account from Lubbock Transport, invoice no. 3450, $1,650, terms 2/10, n/30 . Using the periodic inventory system, Black Cow Company would record a
a. credit to Purchases. b. debit to Purchases. c. debit to Accounts Payable, Lubbock Transport. d. credit to Cash.
Tax accounting is a function for which companies must hire outside, public accounting firms
Indicate whether the statement is true or false
Which of the following is true of international marketing research?
A. It is impossible to coordinate similar marketing research efforts under way in several countries due to language and cultural differences. B. Comparing the results of one market area to another complicates a home office manager's understanding of markets. C. It is impossible to standardize the elements of an international marketing information system. D. If a firm is well-established internationally, working with local market research firms in the countries of interest is less useful. E. Accurate data (both primary and secondary data) may be hard to find in international markets.
Refer to the data on Expected Demand for Weston Gadgets, Inc. For the various demand scenarios and their associated probabilities, what is the maximum expected value?
A. $37.10 million
B. $26.71 million
C. $32.55 million
D. $17.85 million