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Exam 13: Export Controls and Sanctions

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Question 21

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In 1949,NATO's COCOM was created:

A) to aid Europe's economic recovery after WWII.
B) to control the exporting of goods with military applications to communist countries.
C) to prevent the escalation of the Cold War.
D) to provide U.S. manufacturers with fairer trading opportunities outside the U.S.

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Question 22

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The U.S.anti boycott laws are applicable to foreign affiliates of U.S.based companies.

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Question 23

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Enforcement of the U.S.export laws is the function of the:

Discuss the strengths and weaknesses of using export controls to effectively stem the tide of high-tech equipment to countries who do not share our political or democratic beliefs.

The two principal agencies that regulate the export of goods from the U.S.are:

Among the reasons for controlling exports are the protection of national security,the prevention of terrorism,the promotion of regional stability,and the preservation of scarce materials.

The U.S.export control system is conflicted as on one hand it advocates free trade argue with limited restrictions while national security on the other hand advocates press for relatively more restrictions.

Diversion refers to the illegal placement of goods in the hands of an individual for whom an export license would not be granted because of the type of product,the product's end use,or the country involved.

An example of a failed unilateral use of export controls was the embargo of wheat destined to Russia as a political response to the Russian invasion of Afghanistan.

Unilateral export controls are determined by several countries (against another or group of other countries)but enacted by only one country; multilateral export controls are determined and enacted by several countries to control the exports to another country or groups of countries.