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
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Which of the following best explains the reason for the rise in protectionist pressures around the world during the 1980s? A. The strict GATT bureaucracy in Geneva controlling trade regulations B. The opening up of international markets to cheap products from China C. The fall of the Soviet Union D. The persistent trade deficit […]
Date: September 3rd, 2020
QUESTION Bilateral voluntary export restraints, or VERs, circumvented GATT agreements, because: A. these nations withdrew their membership to the GATT. B. the member nations had ceased to recognize GATT as a regulatory body for international trade. C. VERs were not a recognized trade barrier under the GATT constitution. D. neither the importing country nor the […]
Date: September 3rd, 2020
QUESTION Which of the following best indicates the motive for foreign firms to engage in dumping? A. Unloading excess production in foreign markets B. Cutting labor costs to reduce the costs of production C. Providing a wider range of products for consumers in foreign markets D. Meeting the voluntary export requirements imposed on it E. […]
Date: September 3rd, 2020
QUESTION One of the reasons why protectionist pressures arose around the world during the 1980s was: A. the different ways many countries found to get around GATT regulations. B. the opening up of national markets to cheap products from China. C. the fall of the Soviet Union. D. the persistent trade lead taken by the […]
Date: September 3rd, 2020
QUESTION Why is retaliation by government intervention a risky strategy? A. It encourages dumping by foreign companies. B. It could result in increased tariff barriers by the country that is being pressured. C. It may expose certain industries that are important for national security to foreign competition. D. It allows firms to sell goods in […]
Date: September 3rd, 2020
QUESTION Which of the following is a provision of the Uruguay Round Agreement? A. A wide range of services were to be excluded from GATT fair trade and market access rules. B. Tariffs on industrial goods were to be raised by more than one-third, and tariffs were to be scrapped on more than 50 percent […]
Date: September 3rd, 2020
QUESTION Cadmia banned imports of Mattel toys with high levels of toxic lead, manufactured in Argonia. The underlying motive for such a move could be: A. protecting domestic businesses from unfair pricing. B. protesting the pricing of toys below their costs of production. C. protecting consumers from unsafe products. D. increasing the trade surplus of […]
Date: September 3rd, 2020
QUESTION Which of the following indicates the difference between GATT and WTO? A. WTO has strict time limits 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 resort, to impose (commensurate) trade sanctions unlike WTO. D. GATT’s verdict is […]
Date: September 3rd, 2020
