Deck 7: The International Trade Structure

Question 1

The economic liberal view of trade as a positive sum game is based in part on the theory of comparative advantage. Define comparative advantage and discuss its relationship to international differences in opportunity costs. Why do all nations supposedly gain when trade takes place according to comparative advantage?

Answer 1

No Answer.

Question 2

Compare the views of mercantilists, economic liberals, structuralists, and constructivists on trade. (Note: think about the tension between the politics and economics of trade.)

Answer 2

No Answer.

Question 3

Explain several commonly-used protectionist trade measures.

Answer 3

No Answer.

Question 4

Outline key reasons for increased trade protectionism in the 1970s, the first half of the 1980s, and since 2015.

Question 5

Discuss the most important issues of the GATT Uruguay Round and the WTO's Doha Round.

Question 6

What are the differences between "at-the-border" and "behind-the-border" trade rules? Give examples of both. Why are behind-the-border rules often more politically difficult for states to agree on?

Question 7

What explanations do Muzaka, Bishop, Wolfe, and Hopewell offer for the failure of the Doha Round? Do developed or developing countries deserve most of the blame for the Round's failure?

Question 8

Many people in Europe, the United States, and elsewhere are disenchanted with the effects of the international trade structure. Explain why.

Question 9

Some IPE scholars argue that free trade can lead to unfair or negative effects in society. Explain their views and give examples that seem to support their arguments.

Question 10

Some argue that the United States is hypocritical on trade because it pressures other countries to liberalize trade but uses many forms of trade protectionism itself. Provide examples to support this argument.

Question 11

What do Autor, Dorn, and Hanson believe are some major effects on the United States of trade shocks from imports of Chinese goods?

Question 12

What are some potential public health consequences of trade liberalization?

Question 13

Free trade agreements have never created truly free trade. Explain this statement, with examples.

Question 14

Which country or region has the highest share of global merchandise exports?

A) China
B) The United States
C) The European Union
D) Latin America and the Caribbean

Question 15

For which region of the world do agricultural exports constitute the largest share of its overall merchandise exports?

A) South and Central America
B) Africa
C) The Middle East
D) Asia

Question 16

Which country is the world's largest exporter of commercial services?

A) Japan
B) Germany
C) The United Kingdom
D) The United States

Question 17

According to the theory of comparative advantage, mutually advantageous international trade is based on differences in

A) the absolute abundance of natural resources.
B) the relative cost of producing a good in different countries.
C) which good a particular nation can produce at the lowest cost.
D) the effective use of trade barriers and export subsidies.

Question 18

Which of the following statements about trade is false?

A) Trade generates political, economic, and social interdependencies between nations.
B) Most countries export more of the goods they produce than they consume at home.
C) Trade as percentage of world GDP is higher in 2016 than it was in 1990.
D) Increased trade reflects the internationalization of production.

Question 19

Technically, the United States has a comparative advantage over the European Union in the production of commercial aircraft if

A) the U.S. can produce more airplanes than can the EU.
B) the U.S. can produce bigger airplanes than can the EU.
C) production of airplanes in the U.S. requires less sacrifice of other goods than would similar airplane production in the EU.
D) _{the U.S. market for airplanes is larger than the EU market.}

Question 20

Which of the following is incorrect?

A) Mercantilists prefer strategic trade policies.
B) Economic liberals prefer international trade rules.
C) Structuralists prefer that states practice neo-imperialism in order to dump excess goods and capital abroad.
D) Economic liberals like TRIPs.

Question 21

A mercantilist would most likely agree with which of the following statements about trade?

A) Specialization in comparative advantage benefits all the parties engaged in trade.
B) A persistent trade surplus will significantly harm a country.
C) A country that liberalizes trade will enjoys higher rates of economic growth.
D) Trade rules should be grounded in the principle of most favored nation treatment.
E) None of the above

Question 22

A measure that restricts the quantity of an item that can be brought into a country is called

A) a tariff.
B) an import quota.
C) an export quota.
D) a duty.

Question 23

Which of the following is a basic principle of the GATT?

A) freer trade in agricultural goods
B) nondiscrimination
C) preferential access
D) strategic trade

Question 24

The two main components of nondiscrimination in the GATT agreement are

A) special and differential treatment.
B) reciprocity and mutuality.
C) national treatment and most favored nation treatment.
D) multilateralism and sovereignty.

Question 25

All of the following are inconsistent with true free trade principles except

A) Special and differential treatment
B) Reciprocity
C) Export subsidies
D) Voluntary export restraints

Question 26

Negotiations in the Uruguay and Doha Rounds were each organized as a "single undertaking," meaning that

A) the agreed goal of the negotiations was a single tariff rate for imported manufactured goods, agricultural goods, and services.
B) nothing was agreed until everything was agreed.
C) tariff rates would be harmonized across all WTO members.
D) WTO members pledged not to sign any other trade agreements during the Rounds.

Question 27

Which of the following bodies is sanctioned to adjudicate trade disagreements between WTO members.

A) dispute settlement panel
B) the International Court of Justice
C) TRIPS
D) G20
E) none of the above

Question 28

One important trend of recent years has been the growth of regional trade blocs. Which of the following is not a regional trade bloc?

A) the G20
B) the EU
C) ASEAN
D) NAFTA

Question 29

Which of the following is a multilateral trade deal being negotiated between the EU and the United States?

A) RCEP
B) TPP
C) TTIP
D) TiSA

Question 30

Place these four trade-related events in their proper chronological order: (a) TPP negotiations; (b) Uruguay Round; (c) Tokyo Round; (d) Doha Round.

A) a, b, c, d
B) d, b, c, a
C) c, b, d, a
D) c, d, a, b

Question 31

Which of the following is a reason why many states resist significant liberalization of trade in services?

A) Worries that the state will lose monopoly control over the health care and education sectors
B) Fears that foreign intelligence agencies will gain more access to information about one's citizens
C) Worries that certain "ways of life" will be lost
D) All of the above

Question 32

Which of the following is not a claim that Autor, Dorn, and Hanson make about trade shocks?

A) They reduce manufacturers' expenditures on research and development.
B) They cause voters to support more extremist candidates in the Democratic and Republican parties.
C) They are correlated with a rise in male deaths from drug and alcohol abuse.
D) They cause a decline in voter participation rates.

Question 33

By the middle of 2018, President Trump had implemented all the trade measures below except

A) withdrawing the United States from NAFTA
B) withdrawing the United States from the Trans-Pacific Partnership
C) imposing a duty on imports of aircraft manufactured by Bombardier in Canada
D) starting negotiations with South Korea to revise the Korea-United States Free Trade Agreement