Question 1

Which of the following organizations,established in 1995 under the provisions of the Uruguay Round,has taken over the responsibility to arbitrate trade disputes and monitor the trade policies of member countries?

Accepted Answer

The World Trade Organization (WTO) was established in 1995 under the provisions of the Uruguay Round to arbitrate trade disputes and monitor the trade policies of member countries. The World Bank focuses on providing loans and financial assistance to developing countries, while the International Trade Commission is a US government agency that investigates unfair trade practices. The International Monetary Fund focuses on promoting international monetary cooperation and exchange rate stability. The World Economic Forum is a non-governmental organization that hosts an annual meeting of global leaders to discuss economic issues.

Question 2

The WTO's Agreement on _____ is an attempt to narrow the gaps in the way intellectual property rights are protected around the world and to bring them under common international rules.

Accepted Answer

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an agreement under the WTO which aims to establish common international rules for the protection of intellectual property rights, including patents, trademarks, and copyrights. Its goal is to narrow the gaps in the way these rights are protected around the world, and to facilitate trade and investment by ensuring a level playing field for all parties. The other options listed are not relevant to this agreement.

Question 3

The WTO was encouraged to extend its reach to encompass regulations governing foreign direct investment,something the GATT had never done.Two of the first industries targeted for this reform were:

Accepted Answer

The text mentions that the reform aimed at extending regulations to foreign direct investment and that two of the first industries targeted were global telecommunication and financial services. Therefore, the correct choice is A. The other choices are not mentioned in the text.

Question 4

Which of the following best explains the reason for rise in protectionist pressures around the world during the 1980s?

Accepted Answer

The persistent trade deficit in the world's largest economy, the United States, led to the rise in protectionist pressures around the world during the 1980s. The US trade deficit was seen as a threat to domestic industries and employment, causing other countries to adopt protectionist measures in response.

Question 5

Which of the following indicates the difference between GATT and WTO?

Accepted Answer

The answer of Which of the following indicates the difference...

Question 6

Which of the following is a provision of the Uruguay Round Agreement?

Accepted Answer

The provision of the Uruguay Round Agreement was that barriers on trade in textiles were to be significantly reduced over 10 years.

Question 7

One of the reasons why protectionist pressures arose around the world during the 1980s was:

Accepted Answer

The answer of One of the reasons why protectionist pressures...

Question 8

Which of the following is true regarding the difference between GATT and WTO?

Accepted Answer

The answer of Which of the following is true regarding...

Question 9

Which of the following is a loopholes in antidumping laws that is being exploited by many countries to pursue protectionism?

Accepted Answer

The rather vague definition of what constitutes "dumping" allows for interpretation that varies from country to country, giving room for protectionist measures to be taken.

Question 10

Bilateral voluntary export restraints,or VERs,circumvented GATT agreements,because:

Accepted Answer

The answer of Bilateral voluntary export restraints,or VERs,circumvented GATT agreements,because:
...

Question 11

Which of the following multilateral agreements was established under U.S.leadership in 1947,with the objective to liberalize trade by eliminating tariffs,subsidies,import quotas,and the like?

Accepted Answer

The General Agreement of Tariffs and Trade (GATT) was established under U.S. leadership in 1947 with the objective to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like. It was later replaced by the World Trade Organization (WTO) in 1995.

Question 12

Which of the following industries was the first to be targeted for reform under WTO regulations governing foreign direct investment?

Accepted Answer

The global telecommunication industry was the first to be targeted for reform under WTO regulations governing foreign direct investment, specifically during the Uruguay Round of negotiations in the late 1980s and early 1990s. The Agreement on Basic Telecommunications Services (BTA) was the first multilateral agreement to be signed by the WTO in 1997, aimed at promoting greater competition and liberalization in the sector.

Question 13

The main effect of the Uruguay Round Agreement on agriculture sector was:

Accepted Answer

The Uruguay Round Agreement resulted in a substantial reduction of farm subsidies, which had previously distorted international trade and competition in the agricultural sector. This reduction aimed to create a more level playing field for all countries involved in agriculture trade.

Question 14

The Smoot-Hawley Act had a damaging effect on _____.

Accepted Answer

The Smoot-Hawley Act was a protectionist trade policy that raised tariffs on over 20,000 imported goods. The policy was intended to protect domestic industries, but it had the opposite effect by reducing international trade and causing other countries to retaliate with their own protectionist policies. This, in turn, had a damaging effect on employment abroad, as other countries reduced their imports from the United States, leading to job losses in export industries.

Question 15

Which of the following countries,with minor exceptions,is fully open to inward investment by foreign banks,insurance,and security companies?

Accepted Answer

The United States is the only country listed that is fully open to inward investment by foreign banks, insurance, and security companies. Russia, Cuba, and Venezuela have more restrictions on foreign investment, and while Indonesia has made efforts to open up to foreign investment, there may still be limitations.

Question 16

Myra is a firm producing premium hand bags for women.These bags are manufactured and patented in the country of Ceria.Manufactures in the country of Argonia create counterfeit Myra bags and sell them in the local markets of Argonia.These bags are sold at almost similar prices to the original in other countries.According to the given info,which of the following is likely to happen?

Accepted Answer

The presence of counterfeit Myra bags in the local market of Argonia would lead to a reduction in export opportunities for Myra's genuine handbags. This is because customers may opt to purchase the counterfeit bags, which are sold at almost similar prices, instead of the original ones. This could lead to decreased demand for Myra's products, resulting in reduced export opportunities to Argonia. The other options are not supported by the given information.

Question 17

Which of the following is most likely to be the reason for the rise in protectionist pressures around the world during the 1980s?

Accepted Answer

During the 1980s, Japan's economic success led to significant trade imbalances, causing other countries to adopt protectionist measures to shield their industries from Japanese competition.

Question 18

_____ is one of the ways in which countries can circumvent GATT regulations and is best exemplified by the agreement between Japan and America under which Japanese producers promised to limit their auto imports into the United States.

Accepted Answer

Voluntary export restraint is a way in which countries can bypass GATT regulations by agreeing to limit their exports voluntarily. The example given in the question of Japan and America's agreement on auto imports is a prime illustration of this practice.

Question 19

Which of the following statements is true regarding GATT?

Accepted Answer

The statement that is true regarding GATT is that the last round for tariff reduction, the Uruguay Round, was launched in 1986 and completed in December 1993.

Question 20

The _____ was created to implement the GATT agreement.

Accepted Answer

The World Trade Organization (WTO) was created in 1995 to replace the General Agreement on Tariffs and Trade (GATT) and to oversee the implementation of the GATT agreement. The other options listed do not have a direct relationship to implementing the GATT.

Quiz 7: The Political Economy of International Trade