Question 1

The WTO reduces the impact of raw power on international trade relations because

Accepted Answer

The WTO brings the rule of law to bear in international trade relations, reducing the impact of raw power on trade. The organization provides a framework for negotiating and implementing trade agreements, and has a dispute settlement mechanism to enforce common rules. This allows for a more equal and fair playing field for all member countries, regardless of their economic or political power.

Question 2

Global trade has grown during the past 60 years at an average annual rate of about

Accepted Answer

According to the World Trade Organization, global trade has grown at an average annual rate of about 6 percent since the 1950s.

Question 3

World trade has grown so rapidly over the last 60 years because

Accepted Answer

The establishment of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) provided a framework for international trade and encouraged its growth through the reduction of trade barriers and regulations. The WTO and GATT were instrumental in promoting free trade and creating a level playing field for international commerce.

Question 4

A hegemon is a country that

Accepted Answer

A hegemon is a country that dominates the world economy by producing a disproportionately large share of the world's output and leading in the development of new technologies. The term is often used to refer to the United States as the current global hegemon.

Question 5

According to Oatley,WTO rules have been criticized by NGOs as

Accepted Answer

Oatley notes that NGOs have criticized WTO rules as being too favorable towards producer interests. This criticism stems from concerns about the impact of free trade on labor rights, human rights, and the environment, which some NGOs see as being subordinated to the interests of multinational corporations and wealthy countries.

Question 6

The World Trade Organization - WTO

Accepted Answer

The WTO has a staff and budget much smaller than the World Bank. As of 2021, the WTO has around 600 staff members and a budget of around $220 million, while the World Bank has over 10,000 staff members and a budget of over $40 billion. The WTO's headquarters is in Geneva, Switzerland.

Question 7

Which two core principles stand at the base of the WTO?

Accepted Answer

The two core principles at the base of the WTO are market liberalism and nondiscrimination. Market liberalism refers to the promotion of free trade and open markets, while nondiscrimination refers to treating all members equally without preferential treatment. These principles form the foundation of the WTO's mission to facilitate global trade and ensure a level playing field for all participants.

Question 8

Which of the following is NOTan idea generally advanced by scholars to account for the rapid proliferation of RTAs?

Accepted Answer

Scholars generally do not suggest that RTAs are formed to decrease a country's bargaining power in multilateral trade negotiations. Rather, RTAs are often seen as a way for countries to strengthen their bargaining power by forming a bloc with other like-minded countries.

Question 9

If more trade is created than diverted,a RTA

Accepted Answer

If more trade is created than diverted, it means that the RTA has led to liberalization of trade. This is because the RTA has allowed for the creation of new trade flows that were not otherwise possible under existing multilateral arrangements. In other words, it has lowered barriers to trade and increased market access, leading to economic gains for its members.

Question 10

Agreements between countries in Western,Eastern,and Central Europe,and in the Mediterranean account for almost

Accepted Answer

Agreements between countries in Western, Eastern, and Central Europe, and in the Mediterranean account for almost 70 percent of Regional Trade Agreements (RTAs) in operation, reflecting the dense network of trade agreements within the European region and its immediate neighbors.

Question 11

The history of hegemonic transitions provides some support that

Accepted Answer

The history of hegemonic transitions suggests that world trade has flourished during periods of hegemonic leadership, such as during the British and American hegemonies. Conversely, world trade has floundered during periods without hegemonic powers, such as during the interwar period between the World Wars.

Question 12

"Nondiscrimination" ensures that

Accepted Answer

Nondiscrimination, as a principle of the WTO, requires each member to provide identical opportunities to trade with other members. This is reflected in the most-favored-nation (MFN) principle, which obliges each member to provide treatment no less favorable than it provides to any other member country. Therefore, the answer is A.

Question 13

According to Oatley,the agreements that will conclude the Doha Round will impose

Accepted Answer

According to Oatley, the agreements that will conclude the Doha Round will impose hefty adjustment costs in agriculture in developed countries and manufactured goods for most developing countries. This is because the negotiations are mainly focused on reducing barriers to trade in agriculture, which will hurt farmers in many developing countries. At the same time, the developed countries will face pressure to lower tariffs on manufactured goods, which could harm their domestic industries. Overall, the Doha Round is likely to result in significant adjustments costs for many countries, with a particular burden falling on poorer countries.

Question 14

Many observers believe that regional trade arrangements

Accepted Answer

Regional trade arrangements can pose a challenge to the World Trade Organization (WTO) because they create preferential trade terms between member countries, potentially discriminating against non-member countries and thus challenging the WTO's principle of non-discrimination in global trade.

Question 15

Two important probable changes within the WTO are

Accepted Answer

The emergence of developing countries as a powerful bloc within the WTO is already a trend that has been observed in recent years, and it is likely to continue. At the same time, the role of NGOs in shaping global trade policy has also been growing, as they have been successful in bringing attention to social and environmental concerns related to trade liberalization. Therefore, it is probable that NGOs will continue to be a powerful force outside the WTO.

Question 16

The multilateral trade system is an international political system because

Accepted Answer

The multilateral trade system provides a set of rules and regulations that governments must follow to influence the cross-border flow of goods and services. As such, it is an international political system that helps to govern international trade relations.

Question 17

Reforms that might make WTO decision making more inclusive

Accepted Answer

Making WTO decision-making more inclusive typically involves accommodating a wider range of interests and perspectives, which can complicate and slow down the process of reaching consensus or agreement.

Question 18

As a hegemon declines in power,

Accepted Answer

The answer of As a hegemon declines in power,
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Question 19

The growth of the WTO membership and the emergence of the G-20 as a powerful bloc within the organization

Accepted Answer

As the WTO membership has grown and the G-20 has emerged as a powerful bloc, it has become more difficult to find trade packages that are acceptable to the full membership due to the increased diversity of interests and priorities among member countries. This can lead to longer and more contentious negotiations, as seen with recent WTO talks.

Question 20

A public good is defined by which two characteristics?

Accepted Answer

A public good is non-excludable, meaning that once it is provided, nobody can be prevented from using it. It is also non-rivalrous, which means that one person's use of the good does not affect another person's ability to use it. Therefore, the correct choice is E - Non-excludability and non-rivalry.

Quiz 2: The World Trade Organization and the World Trade System