Question 1

The origin of protectionist policy can be traced back to -------.&#10;A)Free trade era&#10;B)Mercantilists days&#10;C)Globalisation period&#10;D)Brettonwoods system

Accepted Answer

Protectionist policy, which involves government actions and policies that restrict or restrain international trade, can be traced back to the Mercantilist days. Mercantilism was an economic theory and practice, dominant in Europe from the 16th to the 18th century, that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers. It was characterized by the belief that a country's wealth was measured by its stock of gold and silver, and to increase that wealth, countries needed to encourage exports and discourage imports through tariffs and quotas, which is a form of protectionism.

Question 2

Infant Industry Argument is justified for -------.&#10;A)Protecting old industries&#10;B)For enabling competitive efficiency of industries&#10;C)For strengthening public sector&#10;D)For allowing free trade

Accepted Answer

The Infant Industry Argument justifies protectionist measures for new industries to allow them to develop competitive efficiency before they are exposed to international competition.

Question 3

Pick out the wrong statement.&#10;A)Tariffs are primarily levied to earn revenue.&#10;B)Tariffs are levied to protect domestic industries.&#10;C)Tariffs reduce the prices of the commodity on which it is levied.&#10;D)Tariffs affect the income and employment.

Accepted Answer

Tariffs are taxes imposed on imported goods, which generally increase the price of the commodity in the importing country, making imported goods less competitive compared to domestic products. This contradicts the statement that tariffs reduce the prices of the commodity on which it is levied.

Question 4

Pick out the wrong statement.&#10;A)Tariffs restrict trade&#10;B)Import quotas have a direct effect in reducing imports&#10;C)Voluntary export restraint is an example of tariff barriers.&#10;D)An export subsidy is a government grant given to an export firm.

Accepted Answer

Voluntary export restraints (VERs) are not examples of tariff barriers; instead, they are non-tariff barriers. VERs involve a country voluntarily limiting the amount of goods it exports to another country, unlike tariffs, which are taxes imposed on imports or exports.

Question 5

Economic integration means.&#10;A)Application of tariffs&#10;B)Removal of customs duties&#10;C)Banning the movement of goods and services&#10;D)banning trade

Accepted Answer

Economic integration typically involves the removal of customs duties and other trade barriers, facilitating easier and more efficient trade between member countries.

Question 6

-------is the highest form of economic integration.&#10;A)Preferential trading system&#10;B)Free trade union&#10;C)Customs union&#10;D)Economic union

Accepted Answer

An economic union represents the highest form of economic integration. It involves the coordination of economic and monetary policies among member countries, allowing for the free movement of goods, services, capital, and labor, and often includes a common currency.

Question 7

The European Economic Community (EEC) was founded in 1957 under the treaty of -------.&#10;A)Paris&#10;B)Rome&#10;C)Washington&#10;D)Veraiiles&#10;

Accepted Answer

The European Economic Community (EEC) was founded under the Treaty of Rome in 1957.

Question 8

Pick out the feature which does not describe European Union.&#10;A)Common currency&#10;B)Elimination of customs duties on the movement of goods.&#10;C)Independent policies for agriculture among member nations.&#10;D)Creation of a European Social Fund to improve employment opportunities of workers.

Accepted Answer

The European Union (EU) has a Common Agricultural Policy (CAP) that sets agricultural policies for all member states, rather than allowing independent policies for agriculture among member nations. This policy aims to support farmers, promote sustainable agriculture, and ensure food security across the EU.

Question 9

European union was initially formed with -------European countries.&#10;A)27&#10;B)28&#10;C)6&#10;D)5

Accepted Answer

The European Union was initially formed with 6 European countries. These founding countries are Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany, coming together to form the European Coal and Steel Community in 1951, which later evolved into the European Economic Community and eventually the European Union.

Question 10

Prime Minister -------announced the government's intention that U.K. will not seek permanent membership of the European single market or the EU customs union after leaving the EU.&#10;A)David Cameroon&#10;B)Trump&#10;C)Narendra Modi&#10;D)Theresa May

Accepted Answer

Theresa May, as Prime Minister of the United Kingdom, announced the government's intention not to seek permanent membership of the European single market or the EU customs union after leaving the EU. This was part of the Brexit process.

Question 11

The referendum for Brexit was held on -------.&#10;A)July 1st 2017&#10;B)June 23rd 2016&#10;C)September 1, 2017&#10;D)July 23rd 2016

Accepted Answer

The answer of The referendum for Brexit was held on...

Question 12

ASEAN was formed with the signing of -------.&#10;A)European declaration&#10;B)American declaration&#10;C)Asean declaration&#10;D)Bangkok declaration

Accepted Answer

The answer of ASEAN was formed with the signing of...

Question 13

Pick out the wrong statement.&#10;A)The objective of ASEAN is to achieve economic, political, social and cultural co- operation among its members.&#10;B)U.K. is a member of ASEAN&#10;C)There will be free movement of goods and services within ASEAN&#10;D)ASEAN FTA will improve business competitiveness between the members.

Accepted Answer

The answer of Pick out the wrong statement.&#10;A)The objective of...

Question 14

The objective of commercial policy is / are -------.&#10;A)increase trade relation&#10;B)endanger domestic market&#10;C)allow import of goods&#10;D)Restrict exports

Accepted Answer

The answer of The objective of commercial policy is /...

Question 15

Under free trade -------benefit more.&#10;A)consumer&#10;B)agents&#10;C)middlemen&#10;D)traders

Accepted Answer

The answer of Under free trade -------benefit more.&#10;A)consumer&#10;B)agents&#10;C)middlemen&#10;D)traders...

Question 16

Under free trade -------will be higher.&#10;A)wages&#10;B)trade wars&#10;C)civil wars&#10;D)restrictions

Accepted Answer

The answer of Under free trade -------will be higher.&#10;A)wages&#10;B)trade wars&#10;C)civil...

Question 17

Free trade is based on the principle of -------.&#10;A)Comparative cost advantage&#10;B)Comparative disadvantage&#10;C)Production possibility advantage&#10;D)Equal cost

Accepted Answer

The answer of Free trade is based on the principle...

Question 18

Which of the following is not an argument for protectionism .&#10;A)to protect infant industries&#10;B)to increase the level of imports&#10;C)to protect small industries&#10;D)to improve the balance of payments

Accepted Answer

The answer of Which of the following is not an...

Question 19

A tariff is a tax on -------.&#10;A)domestic goods and services&#10;B)foreign goods and service&#10;C)quality of goods&#10;D)None of the above

Accepted Answer

The answer of A tariff is a tax on -------.&#10;A)domestic...

Question 20

Protectionism &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#10;A)increase the quality of imports&#10;B)decrease the government revenue&#10;C)increase the government earnings from tax&#10;D)decrease the government earnings from tax

Accepted Answer

The answer of Protectionism &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#10;A)increase the quality of imports&#10;B)decrease the...

Question 21

Which of the following is an argument far free trade -------.&#10;A)prevents monopolies&#10;B)unfavourable terms of trade&#10;C)unfavourable balance of payments&#10;D)allows monopolies

Accepted Answer

The answer of Which of the following is an argument...

Question 22

The main objective of trade barriers are -------.&#10;A)to discourage new industries domestically&#10;B)to reduce unnecessary imports&#10;C)to spend valuable foreign exchange&#10;D)To allow free trade

Accepted Answer

The answer of The main objective of trade barriers are...

Question 23

-------is a type of tariff barriers.&#10;A)Embargo&#10;B)Ad-valorem duties&#10;C)Product standard&#10;D)Consular Formalities

Accepted Answer

The answer of -------is a type of tariff barriers.&#10;A)Embargo&#10;B)Ad-valorem duties&#10;C)Product...

Question 24

-------is a type of non - tariff barriers.&#10;A)Import Quotas&#10;B)Export duties&#10;C)Import Duties&#10;D)Specific Duties

Accepted Answer

The answer of -------is a type of non - tariff...

Deck 8: International Trade Policies and Organizations