Question 1

Which of the following gave Congress the right to accept or reject trade treaties and agreements,but reduced the amendment procedures?

Accepted Answer

Trade promotion authority, also known as "fast track," gives Congress the power to approve or reject trade agreements but reduces the amendment procedures. This means that Congress must vote on the agreement as a whole and cannot make changes to it before approving it.

Question 2

Describe the significance of export promotion efforts.

Accepted Answer

The answer of Describe the significance of export promotion efforts....

Question 3

When U.S.firms work together to establish export promotion development,as allowed by the Export Trading Company Act of 1982,the companies are in effect forming a(n)_____.

Accepted Answer

When U.S. firms work together to establish export promotion development, as allowed by the Export Trading Company Act of 1982, they form export consortia. This cooperation enables smaller firms to combine resources and expertise to compete in foreign markets, thereby increasing exports for all members involved.

Question 4

Providing preferential treatment to domestic bidders over foreign bidders,using national standards that are not comparable to international standards,placing emphasis on design rather than performance,and providing for general difficulties in the market entry of foreign products are all examples of _____.

Accepted Answer

These are all examples of nontariff barriers, which are forms of trade protectionism that create obstacles to imports without using tariffs. Nontariff barriers include measures such as quotas, licensing requirements, technical standards, and other regulations that can make it difficult for foreign companies to compete in a domestic market. In this case, the examples listed all involve ways that foreign bidders may be disadvantaged when competing for government contracts or trying to sell products in a foreign market.

Question 5

"Voluntary" import restraints have been used mainly in areas such as textiles,automobiles,and steel,and are intended to _____.

Accepted Answer

Voluntary import restraints are typically implemented to give domestic industries a chance to recover and regain their competitive edge in the global market, particularly in sectors where they have lost significant market share to foreign competitors.

Question 6

The disappointment with past trade negotiations is mainly the result of _____.

Accepted Answer

The word "disappointment" suggests that there were high hopes or expectations for past trade negotiations, and the fact that these hopes were not met implies that they were overblown or unrealistic. Therefore, choice D, "overblown expectations," is the best answer. A, lack of funds, and B, low global competitiveness, are not mentioned in the context of the sentence, and C, excessive competitiveness, does not seem to be a likely cause of disappointment in trade negotiations.

Question 7

How did international trade affect the rise and fall of the Roman Empire?

Accepted Answer

The answer of How did international trade affect the rise...

Question 8

The Export-Import Bank of the United States gives loans known as _____ that are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates.

Accepted Answer

The loans described in the question, composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates, are known as "mixed aid credits." Option A, "untied aid credits," refers to loans with no conditions attached as to how the money can be spent. Options C and D, "payday loans" and "title loans," are types of short-term, high-interest lending typically used by individuals rather than organizations like the Export-Import Bank.

Question 9

How has the U.S.Congress responded in light of persistent trade deficits,growing foreign direct investment,and the tendency of some firms and industries to seek legislative redress for failures in marketplace?

Accepted Answer

In response to persistent trade deficits, growing foreign direct investment, and the tendency of some firms and industries to seek legislative redress for failures in the marketplace, the U.S. Congress has provided more powers to the president to restrict trade. Congress has passed laws such as the Trade Act of 1974 and the Omnibus Trade and Competitive Act of 1988 that give the president authority to negotiate and enforce trade agreements, impose trade sanctions, and unilaterally modify tariffs and other trade barriers. This has allowed the president to take a more active role in trade policy and address concerns about unfair trade practices and the competitiveness of American businesses.

Question 10

What must policymakers do for trade and investment negotiations between countries to be long-lasting?

Accepted Answer

Policymakers must prioritize long-term goals over short-term achievements in order for trade and investment negotiations between countries to be sustainable and enduring. This may involve making difficult decisions and trade-offs, but it is necessary to ensure the stability and success of the agreements made. Appointing an external taxing authority or ignoring the total cost of policy measures affecting trade and investment are not effective solutions for ensuring long-lasting negotiations. Implementing profit booking in the short term may result in immediate gains, but it is not a sustainable strategy for maintaining positive relationships and mutually beneficial agreements.

Question 11

Trade negotiations that are conducted between two nations are known as _____.

Accepted Answer

Bilateral negotiations are trade negotiations conducted between two nations. A coalition pact involves multiple parties joining together for a common goal, but it may not necessarily involve trade negotiations. Multilateral treaties involve negotiations between multiple nations, often facilitated by international organizations. Negotiation frameworks are guidelines or frameworks used to conduct negotiations, but not a specific type of trade negotiation.

Question 12

Which of the following statements is true about exports?

Accepted Answer

Exporting makes a firm sensitive to different demand structures and cultural dimensions, as they have to adapt their products to meet the needs of different markets.

Question 13

When economic coordination between trading partners continues,leading trading nations will _____.

Accepted Answer

Economic coordination between trading partners often involves the establishment of common rules and regulations, harmonization of policies and standards, and the creation of institutions for dispute settlement and policy coordination. As such, countries may need to cede some of their decision-making powers and sovereignty to these institutions, especially if they are binding and enforceable. For example, the European Union has a centralized monetary policy, a common trade policy, and a court system that can overrule national laws. Similarly, NAFTA and TPP establish joint committees and procedures for resolving disputes between member states. Thus, continued economic integration may entail a tradeoff between greater economic gains from specialization and trade and some loss of political autonomy. The other answer choices are not accurate or complete. Increased competitiveness is not the only or automatic outcome of economic coordination, as some countries may still resort to protectionism, subsidies, or intellectual property rights to gain advantages. The exploitation and devaluation of currencies is not a legitimate or desirable policy option under international law or ethics, as it can cause inflation, trade imbalances, and financial instability. Compromising the WTO charter is also not a likely or desirable outcome, as it is meant to promote open, rules-based, and predictable international trade.

Question 14

The authority to negotiate international agreements with a reasonable certainty that the negotiation outcome will not be subject to minute amendments must be given by Congress to the _____.

Accepted Answer

Under the U.S. Constitution, the president has the authority to negotiate and sign international agreements. However, Congress can limit or regulate this power through legislation. Giving the authority to negotiate international agreements with a reasonable certainty that the negotiation outcome will not be subject to minute amendments to the executive branch would ensure more effective and efficient negotiations, as the president is better positioned to represent the interests of the United States in such negotiations.

Question 15

Explain the significance of the World Bank.

Accepted Answer

The answer of Explain the significance of the World Bank....

Question 16

Which of the following is the result of a country's decision to impose restrictions on its foreign direct investments?

Accepted Answer

Imposing restrictions on foreign direct investments often leads to tightened credit markets because it reduces the amount of capital available for investment within the country. This can make it harder for businesses to obtain financing, leading to tighter credit conditions.

Question 17

Meat-eats,a business entity located in Miami has recently started promoting "Buying U.S.A.," a campaign that focuses on the purchase of meat products that are manufactured exclusively in the United States.This campaign would be projected as _____.

Accepted Answer

The "Buying U.S.A." campaign is promoting the purchase of meat products manufactured exclusively in the United States and is not allowing the import of meat products from other countries. This can be seen as a nontariff barrier to trade, which is a trade barrier that restricts imports or exports through methods other than imposing tariffs (taxes on imported goods). In this case, the campaign is promoting the purchase of domestically produced goods and therefore limiting the market potential of imported meat products.

Question 18

Policymakers will be sufficiently responsive in setting international trade policy objectives that increase opportunities for firms and choices for consumers when _____.

Accepted Answer

Policymakers are more likely to be responsive when they hear from a variety of stakeholders within the trade industry, including retailers, consumers, wholesalers, and manufacturers. This ensures that policy objectives reflect the needs and desires of those who will be impacted by them. The other options presented (adoption of IMF treaty, WTO sanctions, and a performance plan based on customer feedback) may have some impact on policymakers, but they are not as reliable or effective as incorporating input from a diverse set of stakeholders.

Quiz 2: International Trade Frameworks and Policy