Deck 7: Trade in Goods

Question 1

The member states of GATT 1994 owe legal obligations to the contracting parties of GATT 1947

Answer 1

False

Question 2

Derived value is the customs value of goods that is based on their price calculated from the cost of manufacture, overhead, and handling.

Answer 2

False

Question 3

Multilateral Trade Agreements of the WTO Agreement are binding on all members of the WTO.

Answer 3

True

Question 4

General exceptions are situations that excuse a WTO member state from complying with its GATT obligations in order for the state to protect certain essential public policy objectives.

Question 5

The Kennedy Round produced an agreement on anti-dumping.

Question 6

The Australia Group is an informal multilateral group of states concerned with curbing the proliferation of chemical and biological weapons.

Question 7

The WTO can make a decision by a vote if a consensus cannot be reached.

Question 8

The Tokyo Round led to the establishment of the World Trade Organization.

Question 9

The Anti-dumping Code prohibits dumping.

Question 10

The Zangger Committee is also known as Non-Proliferation Treaty Exporters' Committee.

Question 11

The Generalized System of Preferences, allows developing countries to export all (or nearly all) of their products to a participating developed country on a nonreciprocal basis.

Question 12

Deductive value is the customs value of imported goods that is based on the price actually paid or payable for goods at the time they were sold for export.

Question 13

A customs union consists of a group of states that have reduced or eliminated tariffs among themselves but that maintain their own individual tariffs in dealing with other states.

Question 14

Selling exported goods at prices below their normal value is called subsidizing.

Question 15

The Agreement on Implementation of Article VII of GATT 1994 is designed to harmonize the methods used by WTO member states to determine the value of goods for customs purposes.

Question 16

Each member of the Missile Technology Control Regime administers its missile-related export controls independently.

Question 17

Even after a free trade area or customs union is established, GATT rules apply to the constituent states, and not to the area or union as a whole.

Question 18

The term "safeguard" refers to the relinquishment of an obligation owed by another.

Question 19

A tax credit is an example of a subsidy.

Question 20

The provisions of GATT that prohibit a state from taking action contrary to the General Agreement are directly effective.

Question 21

Which of the following best describes transparency?

A) It is the making of a decision by general agreement and in the absence of any voiced objection.
B) It is the relinquishment of an obligation owed by another.
C) It is a principle whereby a treaty may be invoked by a private person to challenge the actions of a state that is a party to the treaty.
D) It is a principle which states that governments must make their rules, regulations, and practices open and accessible to the public and other governments.

Question 22

The ________ is a multilateral agreement that set out the rules under which the contracting states parties were committed to negotiate reductions in customs tariffs and other impediments to international trade in goods.

A) Agreement on Preshipment Inspection
B) General Agreement on Tariffs and Trade
C) Agreement on Safeguards
D) Wassenaar Arrangement

Question 23

Which of the following was a function of the International Monetary Fund?

A) It ensured monetary stability and facilitated currency exchange.
B) It assisted war-ravaged and developing countries to reconstruct or upgrade their economies.
C) It administered a comprehensive code governing the conduct of world trade.
D) It discouraged trade discrimination.

Question 24

Once goods are legally imported, they must be treated the same way as domestic goods. This is called ________.

A) dumping
B) direct effect
C) transparency
D) national treatment

Question 25

The World Trade Organization was a result of the ________.

A) Dillon Round
B) Tokyo Round
C) Kennedy Round
D) Uruguay Round

Question 26

Which of the following terms refers to the relinquishment of an obligation owed by another?

A) social referencing
B) consensus
C) waiver
D) direct effect

Question 27

Which of the following is an organ of the World Trade Organization?

A) Council for Trade in Services
B) International Monetary Fund
C) World Bank
D) Nuclear Suppliers Group

Question 28

The ________ is a GATT scheme that allows developing states to grant tariff preferences to each other without having to grant them to developed states.

A) National treatment rule
B) Generalized System of Preferences
C) South-South Preferences
D) Escape clause

Question 29

The ________ included the GATT MTNs held from 1973 to 1979 that produced six nontariff codes.

A) Dillon Round
B) Tokyo Round
C) Kennedy Round
D) Uruguay Round

Question 30

Nonactionable subsidies are also known as yellow subsidies.

Question 31

The ________ is a GATT scheme that allows a developing state to obtain tariff concessions from a developed state on a nonreciprocal basis.

A) National treatment rule
B) Generalized System of Preferences
C) South-South Preferences
D) Escape clause

Question 32

An actionable subsidy is permissible and nonchallengeable, such as government funding to underwrite research activities, to aid disadvantaged regions, or to help existing facilities adapt to new environmental requirements.

Question 33

A ________ is a group of states that have reduced or eliminated tariffs among themselves but that maintain their own individual tariffs in dealing with other states.

A) customs union
B) free trade area
C) Harmonized System
D) Wassenaar Arrangement

Question 34

The ________ included the GATT MTNs held from 1964 to 1967 that established the practice of setting an agenda for and defining the techniques to be used during GATT negotiations.

A) Dillon Round
B) Tokyo Round
C) Kennedy Round
D) Uruguay Round

Question 35

The making of a decision by general agreement and in the absence of any voiced objection is called ________.

A) social referencing
B) expropriation
C) waiver
D) consensus

Question 36

A countervailing measure is a duty specifically levied to offset dumping.

Question 37

Which of the following best describes direct effect?

A) It is the making of a decision by general agreement and in the absence of any voiced objection.
B) It is the relinquishment of an obligation owed by another.
C) It is a principle whereby a treaty may be invoked by a private person to challenge the actions of a state that is a party to the treaty.
D) It is a principle that governments must make their rules, regulations, and practices open and accessible to the public and other governments.

Question 38

A safeguard is an emergency action that a WTO member state may take in order to protect its domestic industry from serious injury due to a sudden increase in the quantity of an imported product.

Question 39

Prohibited subsidies are also known as red subsidies.

Question 40

A round is a meeting of the contracting parties of GATT to participate in ________.

A) a Harmonized System
B) multilateral trade negotiations
C) commodity arrangements
D) the Wassenaar Arrangement

Question 41

________ is the customs value of imported goods that is based on the price actually paid for similar goods by unrelated persons in the importing country at about the same time.

A) Transaction value
B) Deductive value
C) Computed value
D) Derived value

Question 42

A ________ is a group of states that have reduced or eliminated tariffs among themselves and have also established a common external tariff.

A) customs union
B) free trade area
C) Harmonized System
D) Wassenaar Arrangement

Question 43

Which of the following best describes dumping?

A) It is a duty specifically levied to offset a subsidy.
B) It is the relinquishment of an obligation owed by another.
C) It is a financial contribution made by a government or other public body that confers a benefit on an enterprise, a group of enterprises, or an industry.
D) It is the selling of exported goods at prices below their normal value.

Question 44

________ are mandatory laws and provisions that specify the characteristics of products; the processes and production methods for creating products; and the terminology, symbols, packaging, marking, or labeling requirements for products, processes, or production methods.

A) Stabilization clauses
B) Technical regulations
C) Rules of origin
D) Safeguards

Question 45

________ are situations that excuse a WTO member state from complying with its GATT obligations in order for the state to protect certain essential public policy objectives.

A) Harmonized Systems
B) General exceptions
C) Safeguards
D) Security exceptions

Question 46

The ________ defines the measures that WTO member states may take to protect the life and health of humans, animals, and plants.

A) Anti-Dumping Code
B) Agreement on the Application of Sanitary and Phytosanitary Measures
C) Agreement on Technical Barriers to Trade
D) Agreement on Preshipment Inspection

Question 47

The ________ is the intergovernmental arrangement and organization to coordinate national policies so that transfers of conventional arms and dual-use goods and technologies do not contribute to the development or enhancement of military capabilities that undermine international and regional security and are not diverted to support such capabilities.

A) ? HYPERLINK "http://en.wikipedia.org/wiki/Agreement_on_Trade_Related_Investment_Measures" \o "Agreement on Trade Related Investment Measures" ?Agreement on Trade Related Investment Measures
B) Harmonized System
C) Wassenaar Arrangement
D) Integrated Program for Commodities

Question 48

________ is the customs value of goods that is based on their price calculated from the cost of manufacture, overhead, and handling.

A) Transaction value
B) Deductive value
C) Computed value
D) Derived value

Question 49

Products obtained by extraction or harvest that require minimal processing before being used are called ________.

A) core products
B) secondary resources
C) augmented products
D) primary commodities

Question 50

________ is the customs value of imported goods that is based on the price actually paid or payable for goods at the time they were sold for export.

A) Transaction value
B) Deductive value
C) Computed value
D) Derived value

Question 51

Sectoral agreements of the WTO deal with ________.

A) technical barriers to trade
B) customs valuation
C) textiles and clothing
D) import-licensing procedures

Question 52

The ________ is the exporting states parties to the Treaty on Non- Proliferation of Nuclear Weapons that seek to harmonize their interpretations of the treaty's export-control provision.

A) Australia Group
B) Zangger Committee
C) Nuclear Suppliers Group
D) Harmonized System

Question 53

________ are voluntary guidelines that specify the same things that technical regulations mandatorily specify.

A) Standards
B) Safeguards
C) Rules of origin
D) Conformity assessment procedures

Question 54

________ is the proposal of developing countries that would establish a Common Fund to underwrite the costs of maintaining a buffer stock of primary commodities as a way to stabilize supplies.

A) Customs Valuation Code
B) General Agreement on Tariffs and Trade
C) Integrated Program for Commodities
D) ? HYPERLINK "http://en.wikipedia.org/wiki/Agreement_on_Trade_Related_Investment_Measures" \o "Agreement on Trade Related Investment Measures" ?Agreement on Trade Related Investment Measures

Question 55

The ________ allows a WTO member state to withdraw temporarily from its GATT obligations when there is a surge in the number of imports coming from other member states.

A) escape clause
B) general exception
C) security exception
D) indemnification clause

Question 56

Which of the following is true of the Missile Technology Control Regime?

A) It is a group of nuclear supplier countries.
B) It authorizes the UN Security Council to impose sanctions, including the adoption of bans on trade, on states whose actions threaten international peace.
C) It is a formal group with a permanent organization.
D) It was established to limit the proliferation of missiles capable of delivering nuclear weapons.

Question 57

________ are situations that excuse a WTO member state from complying with its GATT obligations when those are in conflict with its essential security interests or its duties under the United Nations Charter.

A) Harmonized Systems
B) General exceptions
C) Safeguards
D) Security exceptions

Question 58

The ________ is a multilateral association of states concerned with curbing the proliferation of chemical and biological weapons.

A) Australia Group
B) Zangger Committee
C) Nuclear Suppliers Group
D) Harmonized System

Question 59

Emergency trade measures imposed to protect domestic industry from a surge of imports are called ________.

A) customs
B) tariffs
C) waivers
D) safeguards

Question 60

________ is the customs value of goods that is determined by using whichever of the other methods best fit and adjusting it to the particular circumstances.

A) Transaction value
B) Deductive value
C) Computed value
D) Derived value

Question 61

What are the responsibilities of the World Trade Organization?

Question 62

What is an escape clause?

Question 63

What was the significance of the Uruguay Round of the GATT?

Question 64

A(n) ________ is a subsidy that may be challenged as trade distorting if it injures the domestic industry of another WTO member state, nullifies or impairs the benefits due to another member state, or causes or threatens to cause serious prejudice to the interests of another member state.

A) nonactionable subsidy
B) consumption subsidy
C) actionable subsidy
D) prohibited subsidy

Question 65

________ are laws, regulations, and administrative procedures used by states for determining the country of origin of goods.

A) Rules of origin
B) Anti-dumping codes
C) Countervailing measures
D) Conformity assessment procedures

Question 66

A(n) ________ is an emergency action that a WTO member state may take in order to protect its domestic industry from serious injury due to a sudden increase in the quantity of an imported product.

A) servitude
B) safeguard
C) delict
D) usus

Question 67

Explain the concept of "direct effect" in the context of GATT.

Question 68

A(n) ________ is a subsidy that is permissible and nonchallengeable, such as government funding to underwrite research activities, to aid disadvantaged regions, or to help existing facilities adapt to new environmental requirements.

A) actionable subsidy
B) prohibited subsidy
C) nonactionable subsidy
D) consumption subsidy

Question 69

Explain the Wassenaar Arrangement.

Question 70

Differentiate between general exceptions and security exceptions.

Question 71

Enlist the five main organs of the WTO.

Question 72

A(n) ________ is a duty specifically levied to offset a subsidy.

A) countervailing measure
B) customs duty
C) safeguarding measure
D) excise duty

Question 73

What is a subsidy? What are the different types of subsidies?

Question 74

Differentiate between free trade area and customs union.

Question 75

Explain any three of the main principles of GATT 1947?

Question 76

A(n) ________ is a subsidy that is presumed to be trade distorting because it requires export performance or is contingent upon the use of domestic instead of imported goods.

A) nonactionable subsidy
B) consumption subsidy
C) actionable subsidy
D) prohibited subsidy