QUESTION The WTO was encouraged to extend its reach to encompass regulations governing foreign direct investment, something the GATT had never done. Two of the first industries targeted for this reform were: A. global telecommunication and financial services industries. B. scientific research and defense sector. C. pharmaceuticals and heavy metal industry. D. pharmaceuticals and biotechnology. […]
QUESTION According to the extreme version of radical view, no country should ever permit foreign corporations to undertake FDI, because they can never be instruments of economic development, only of economic domination. Indicate whether the statement is true or false. ANSWER TRUE Radical writers argue that the multinational enterprise (MNE) is an instrument of […]
QUESTION Which of the following is true regarding the difference between GATT and WTO? A. The WTO was encouraged to extend its reach to encompass regulations governing foreign direct investment unlike GATT. B. WTO operates on the basis of consensus unlike GATT. C. GATT gives trading partners the right to compensation or, in the last […]
QUESTION By the early 1990s, the radical position toward FDI was in retreat due to the rise of communism in eastern Europe. Indicate whether the statement is true or false. ANSWER FALSE By the early 1990s, the radical position was in retreat almost everywhere. There seem to be three reasons for this: (1) the […]
QUESTION Why did telecommunications companies welcome the telecommunication deal brokered by WTO in 1997? A. It enhanced protection of patents, copyrights, and trademarks (intellectual property). B. It helped resolve deadlock situations arising out of the unwillingness to lower trade barriers between neighboring countries. C. It offered a greater ability for companies to offer a global, […]
QUESTION Myra is a firm producing premium handbags for women. These bags are manufactured and patented in the country of Ceria. Manufacturers in the country of Argonia create counterfeit Myra bags and sell them in the local markets of Argonia. These bags are sold at almost similar prices to the original in other countries. Which […]
QUESTION Which of the following does NOT reinforce that the best interests of international business are served by a free trade stance? A. The increasing integration of the world economy B. The internationalization of production C. The trend toward greater protectionism D. The drawbacks of government intervention E. The dispersion of production activities ANSWER […]
QUESTION Which of the following is a loophole in antidumping laws that is being exploited by many countries to pursue protectionism? A. The slackness of enforcement agencies B. WTO’s noncommittal approach to antidumping laws C. Bilateral VERs which subvert antidumping laws D. The rather vague definition of what constitutes “dumping” E. Lack of consensus among […]
QUESTION The economically damaging effects of the Great Depression were worsened in 1929 by the: A. First World War. B. U.S. stock market collapse. C. spread of communism through Europe. D. Cold War between the world’s superpowers. E. harvest failure in Great Britain and famine in Ireland. ANSWER B
QUESTION Which of the following is an argument against embracing strategic trade policy? A. It hampers the chances of a country’s firms to effectively exploit the first-mover advantages. B. It is certain to be captured by special-interest groups within the economy, which will distort it to their own ends. C. It increases the prices of […]
