Question 1

Four modes of trading services as defined in GATS include all except _____.&#10;A) Cross-border supply&#10;B) Domestic tourism&#10;C) Commercial presence&#10;D) Presence of natural persons

Accepted Answer

The four modes of trading services as defined in GATS are cross-border supply, consumption abroad, commercial presence, and presence of natural persons. Domestic tourism is not one of the modes of trading services defined in GATS.

Question 2

TRIPS covers all of the following except ______&#10;A) Copyrights&#10;B) Trademarks&#10;C) Patents&#10;D) Innovative ideas

Accepted Answer

TRIPS covers intellectual property rights related to copyrights, trademarks, and patents, but it does not cover innovative ideas in general.

Question 3

Reasons for the stalled Doha trade agenda can best be summarized as ______.&#10;A) Lack of agreement on increased agricultural subsidies in developed world&#10;B) Lack of agreement on increased agricultural subsidies in the developing world&#10;C) Lack of agreement on further reduction of trade barriers throughout the world&#10;D) Controversial inclusion of environmental protection in trade agreements

Accepted Answer

Lack of agreement on further reduction of trade barriers throughout the world is the main reason for the stalled Doha trade agenda.

Question 4

The regional trade group that has a common internal and external trade policy is known as ______.&#10;A) Free trade area&#10;B) Common market&#10;C) Customs union&#10;D) Economic union

Accepted Answer

A customs union involves member countries agreeing on common external tariffs for non-members, while allowing free trade among themselves.

Question 5

Manufacturing facilities located in the Northern part of Mexico are known as _______.&#10;A) Maquiladoras&#10;B) Chipotle&#10;C) Chiquanitos&#10;D) NAFTA factories

Accepted Answer

Manufacturing facilities located in the Northern part of Mexico are known as Maquiladoras.

Question 6

______ are vulnerable to ______ which is when non-member nations reroute their exports to member nations with the lowest external trade barriers.&#10;A) Customs unions, trade deflection&#10;B) Customs unions, trade diversion&#10;C) Free trade areas, trade deflection&#10;D) Free trade areas, trade diversion

Accepted Answer

Free trade areas are vulnerable to trade deflection, which occurs when non-member countries redirect their exports to member countries with the lowest external trade barriers, taking advantage of the lack of uniform external tariffs that characterizes free trade areas.

Question 7

Which of the following loan purposes are most likely to be approved by the World Bank?&#10;A) Improvement of current account imbalance in Thailand&#10;B) Infrastructure improvement in Uganda&#10;C) Government building construction in Belgium&#10;D) Government payroll funding in Sri Lanka

Accepted Answer

The World Bank is more likely to approve loans for infrastructure improvements in developing countries like Uganda, where there is a great need for basic infrastructure such as roads, bridges, and water supply systems. Loans for government building construction or payroll funding in developed countries like Belgium and Sri Lanka are less likely to be approved because these countries have more stable economies and governments with their own sources of funding. Loans for improving current account imbalances, such as in Thailand, are also less likely to be approved because they are more complex and require significant policy reforms.

Question 8

The insurance arm of the World Bank is known by the acronym ______.&#10;A) MIGA&#10;B) IDA&#10;C) IFC&#10;D) IBRD

Accepted Answer

MIGA is the acronym for Multilateral Investment Guarantee Agency, which is the insurance arm of the World Bank Group.

Question 9

The &#34;spaghetti bowl&#34; of trade agreements is best described as ______.&#10;A) Recipe for successful trade policy in developing countries&#10;B) Varying trade agreements in bilateral and multilateral arrangements&#10;C) Italian trade policy with African nations&#10;D) Italian-Indian bilateral trade agreement

Accepted Answer

The "spaghetti bowl" of trade agreements refers to the complex web of various trade agreements between countries, including both bilateral and multilateral arrangements. It is not a recipe for successful trade policy in developing countries, nor is it specific to Italian trade policy with African nations or a specific Italian-Indian bilateral trade agreement.

Question 10

An interesting observation since the inception of the WTO is ______.&#10;A) Global economic success&#10;B) Export growth for all developing countries&#10;C) Vast increases in regional trade agreements&#10;D) Increase in protectionism throughout the world

Accepted Answer

Since the inception of the World Trade Organization (WTO), there has been a significant increase in regional trade agreements. These agreements are made between countries within a geographical region to facilitate trade more efficiently than global agreements, reflecting a trend towards regionalization in international trade.

Question 11

GATT includes trade rules regarding services.

Accepted Answer

The answer of GATT includes trade rules regarding services....

Question 12

Since the creation of the WTO, bilateral trade agreements have skyrocketed.

Accepted Answer

The answer of Since the creation of the WTO, bilateral...

Question 13

Trade diversion is when nonmember nations reroute their exports to member nations with the lowest external trade barriers.

Accepted Answer

The answer of Trade diversion is when nonmember nations reroute...

Question 14

Myanmar is a member of ASEAN.

Accepted Answer

The answer of Myanmar is a member of ASEAN....

Deck 6: Supranational Organizations and International Business