Question 1

The basic objective of export Promotion Council is to promote and develop the Exports of the&#10;A)particular products of country&#10;B)only attractive projects of the country&#10;C)only services industry products of the country.&#10;D)overall exports of the country.

Accepted Answer

Export Promotion Councils are established to promote and develop the exports of particular products or services of a country.

Question 2

The main promoter of trade liberalization was&#10;A)gatt&#10;B)nafta&#10;C)cepta&#10;D)cisa

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was the main promoter of trade liberalization, aiming to reduce tariffs and other trade barriers internationally.

Question 3

_______________ is an important reason for economic integration.&#10;A)geographic proximity&#10;B)democracy&#10;C)totalitarianism&#10;D)common law practice

Accepted Answer

Geographic proximity often facilitates economic integration by reducing transportation costs, enhancing communication, and fostering cultural and economic ties between neighboring countries.

Question 4

In which of the following types of regional economic integration are internal tariffs eliminated with member countries levying a common external tariff on goods being imported from nonmembers.&#10;A)customs union&#10;B)free trade area&#10;C)common market&#10;D)complete economic integration

Accepted Answer

A customs union involves member countries eliminating tariffs on trade between themselves while also agreeing on a common external tariff on imports from non-member countries.

Question 5

A _______________ focuses on eliminating internal tariffs with member countries levying a commonexternal tariff on goods being imported from nonmembers. Additionally, this type of regional economicintegration allows free mobility of production factors such as labor and capital.

A)free trade area
B)common market
C)customs union
D)complete economic integration

Accepted Answer

A common market not only eliminates internal tariffs and adopts a common external tariff but also allows for the free movement of labor and capital among member countries, distinguishing it from other forms of economic integration.

Question 6

_______________ occurs when production shifts to more efficient producers for reasons ofcomparative advantage, allowing consumers access to more goods at a lower price than would havebeen possible without integration.

A)trade diversion
B)divestment
C)trade creation
D)retrenchment

Accepted Answer

Trade creation occurs when economic integration allows countries to specialize in the production of goods for which they have a comparative advantage, leading to an increase in efficiency and a reduction in prices for consumers.

Question 7

Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico's and Canada's largest trading partner?

A)cefta (the central european free trade agreement)
B)nafta (the north american free trade agreement)
C)asean (association of south east asian nations)
D)eu (the european union)

Accepted Answer

NAFTA (the North American Free Trade Agreement) was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico's and Canada's largest trading partner, aiming to eliminate trade barriers between the U.S., Canada, and Mexico.

Question 8

_______________ occurs when trade shifts to countries in the group at the expense of trade withcountries not in the group, even though the nonmember country might be more efficient in the absenceof trade barriers.

A)trade creation
B)divestment
C)retrenchment
D)trade diversion

Accepted Answer

Trade diversion occurs when a country enters a trade agreement with a group of countries and starts importing goods from these countries instead of from more efficient producers outside the group, due to the preferential treatment (like reduced tariffs) within the group. This can lead to a situation where goods are sourced from a less efficient producer within the group rather than from a more efficient producer outside the group, simply because of the trade barriers imposed on non-members.

Question 9

NAFTA calls for all of the following EXCEPT:&#10;A)the harmonization of trade rules&#10;B)the liberalization of restrictions on services&#10;C)the implementation of a common currency&#10;D)the liberalization of restrictions on foreign investment

Accepted Answer

NAFTA, the North American Free Trade Agreement, does not call for the implementation of a common currency among its member countries (the United States, Canada, and Mexico). It focuses on trade rules, services, and investment liberalization.

Question 10

NAFTA is a good example of:&#10;A)trade erosion.&#10;B)divestment.&#10;C)retrenchment.&#10;D)trade diversion.

Accepted Answer

NAFTA, the North American Free Trade Agreement, is a good example of trade diversion because it redirects trade flows due to the preferential treatment of goods from member countries (the United States, Canada, and Mexico), potentially at the expense of trade with non-member countries.

Question 11

Where is the headquarters of the EU?&#10;A)belgium&#10;B)netherlands&#10;C)luxembourg&#10;D)greece

Accepted Answer

The answer of Where is the headquarters of the EU?&#10;A)belgium&#10;B)netherlands&#10;C)luxembourg&#10;D)greece...

Question 12

Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?&#10;A)nepal, bhutan, thailand and singapore&#10;B)nepal, bhutan, malaysia and maldives&#10;C)nepal, bhutan, maldives, sri lanka and afghanistan&#10;D)none of the above

Accepted Answer

The answer of Apart from India, Pakistan and Bangladesh who...

Question 13

Which of the following is not the main purpose for formation of SAARC&#10;A)to combat terrorism&#10;B)to promote the welfare of the people of south asia&#10;C)to form mutual defense against foreign aggression&#10;D)none of the above

Accepted Answer

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

Question 14

SAPTA is a trade agreement by _________________&#10;A)asean nations&#10;B)apec nations&#10;C)saarc nations&#10;D)eu nations

Accepted Answer

The answer of SAPTA is a trade agreement by _________________&#10;A)asean...

Question 15

The main reason behind MNCs investments are&#10;A)to benefit foreign countries&#10;B)to provide financial support to the country's government&#10;C)for the welfare of underprivileged people.&#10;D)to increase the assets and earn profits.

Accepted Answer

The answer of The main reason behind MNCs investments are&#10;A)to...

Question 16

Which institute supports investments and foreign trade in India?&#10;A)international monetary fund (imf)&#10;B)world trade organisation (wto)&#10;C)world bank&#10;D)international labour organisation (ilo)

Accepted Answer

The answer of Which institute supports investments and foreign trade...

Question 17

Within an international context, what are 'economies of scope' synonymous with?&#10;A)decreased cost per unit of output.&#10;B)buying components in bulk.&#10;C)reusing a resource from one business/country in additional businesses/countries.&#10;D)all of the above.

Accepted Answer

The answer of Within an international context, what are 'economies...

Question 18

According to the concept of the value chain, of an international firm is profitable if:&#10;A)the value it commands exceeds the costs involved in creating the product&#10;B)the value it commands is lower than the costs involved in creating the product&#10;C)it operates in global industries&#10;D)the value it commands equals the costs involved in creating the product.

Accepted Answer

The answer of According to the concept of the value...

Deck 4: International Trade and Organizations