Deck 21: Nafta, Gatt, Wto: Are Trade Agreements Good for Us

Question 1

Which of the following is a set of rules outlining when tariffs are appropriate and when they are not?

A)NAFTA
B)GATT
C)WTO
D)USSR

Answer 1

B

Question 2

Ultimately, trade agreements are necessary because

A)tariff reduction can be politically popular within many countries.
B)tariff reduction can be politically unpopular within many countries.
C)farmers need to be assured of access to foreign markets.
D)exports make everyone worse off.

Answer 2

B

Question 3

Which of the following purports to be a "free-trade" agreement?

A)NAFTA
B)GATT
C)WTO
D)USSR

Answer 3

A

Question 4

A country that limits imports of a good by restricting the number that be imported is using

A)tariffs.
B)quotas.
C)non-tariff regulatory barriers.
D)subsidies.

Question 5

Limiting trade can be accomplished with

A)tariffs.
B)quotas.
C)non-tariff regulatory barriers.
D)all of the above

Question 6

Which of the following trade agreements includes Costa Rica?

A)NAFTA
B)CAFTA
C)AFL-CIO
D)All of these include Costa Rica.

Question 7

Violent protests against the WTO meeting in Seattle reflected popular concerns over

A)the lack of exports.
B)high tariffs.
C)the consequences of globalization.
D)the 2000 Presidential election outcome.

Question 8

CAFTA governs

A)agricultural trade only
B)trade between the U.S., Canada, and Central America
C)trade between California and the rest of the U.S.
D)health food products

Question 9

Strategic trade policies are designed to increase the benefits of trade to

A)everyone.
B)a single country.
C)the two countries entering an agreement.
D)the world.

Question 10

International protesters have expressed concerns that

A)international trade decentralizes control of economic issues.
B)international finance centralizes control of economic issues in the hands of a relative few.
C)international trade makes unionizing efforts easier.
D)poor nations are over-represented at trade talks.

Question 11

Trade agreements are designed to limit the ability of a country to put on

A)tariffs only.
B)quotas only.
C)tariffs and quotas.
D)neither tariffs or quotas.

Question 12

Which of the following works to limit trade by explicitly raising prices (i.e., as a tax)?

A)tariffs
B)quotas
C)non-tariff regulatory barriers
D)subsidies

Question 13

Theoretically, strategic trade policies are ones that allow for countries that utilize them

A)to gain more from trade than they would if trade were free.
B)to have cheaper imports.
C)to get more money for each unit of export.
D)to help increase all trade around the world.

Question 14

A country that limits imports by requiring a lengthy inspection process is using

A)tariffs.
B)quotas.
C)non-tariff regulatory barriers.
D)subsidies.

Question 15

In terms of jobs gained and lost, economists believe that NAFTA has

A)failed unambiguously in that millions of jobs have fled to Mexico.
B)succeeded unambiguously in that millions of jobs have been created by free trade.
C)had little effect on job gains or losses as trade patterns are not easily identifiable with NAFTA.
D)helped Canada much more than either Mexico or the United States.

Question 16

Which of the following is a organization designed to settle trade disputes?

A)NAFTA
B)GATT
C)WTO
D)USSR

Question 17

Which of the following trade agreements includes Mexico?

A)NAFTA
B)CAFTA
C)GATT
D)All of these include Mexico

Question 18

Which of the following purports to be a "free-trade" agreement?

A)CAFTA
B)GATT
C)WTO
D)USSR

Question 19

Which of the following trade agreements includes the United States?

A)NAFTA
B)CAFTA
C)GATT
D)All of these include the United States

Question 20

The notion of creative destruction suggests that

A)people need to lose their jobs involuntarily to seize better opportunities.
B)people are generally lazy and that losing a job shakes them out of that.
C)people are not well-trained enough to keep the jobs they have.
D)it is always easier to scramble an egg than to unscramble one.

Question 21

The number of U.S. job losses certified by the U.S. Department of Labor as NAFTA-related was A. 100,000.
B) 500,000.
C) 1,500,000.
D) 145 million.

Question 22

Between 1999 and 2007, after NAFTA had been in operation for some time, A. U.S. imports from Mexico fell, but U.S. exports to Mexico fell even more.
B) U.S. exports to Mexico increased, but U.S. imports from Mexico increased even more.
C) total U.S. exports fell, but total U.S. imports fell even more.
D) total U.S. imports increased, but total U.S. exports increased even more.

Question 23

A strategic trade policy of questionable success was

A)Japan's elimination of tariffs on rice imports.
B)U)S. consideration of legalizing marijuana.
C)Britain and France subsidizing AIRBUS.
D)Iraq withholding oil from the world market.

Question 24

From 1999 to 2007, U.S exports to Mexico grew each year by approximately

A)0)5%
B)2)7%
C)8)1%
D)12.7%

Question 25

One of the major issues in the Uruguay round of GATT was

A)domestic content provisions for movies and television.
B)the use of trade as a diplomatic weapon.
C)the question of the Euro's convertibility.
D)the placement of the WTO offices in Uruguay.

Question 26

In the 2008 presidential election campaign, then candidate Obama proposed renegotiating NAFTA to provide greater protections for

A)drug traffickers
B)Canadian corporations
C)U)S. corporations
D)workers

Question 27

Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If two hundred unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while three hundred skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the two countries will change by

A)five hundred additional catheters and one hundred fewer hammocks.
B)three hundred additional catheters and three hundred additional hammocks.
C)one hundred additional catheters and five hundred additional hammocks.
D)no net change in production of the two goods would occur.

Question 28

Between 1990 and 2007, A. U.S. exports to Canada increased rather steadily.
B) U.S. imports from Mexico decreased precipitously.
C) U.S. exports to Mexico decreased rather steadily.
D) all of the above.

Question 29

Proposals for bilateral reduction of tariffs in the U.S. and France have been developed through

A)GATT.
B)NAFTA.
C)UNESCO.
D)CAFTA.

Question 30

One important issue in the Uruguay round of GATT was

A)the treatment of copyrighted material.
B)the use of trade as a diplomatic weapon.
C)the question of the Euro's convertibility.
D)the placement of the WTO offices in Uruguay.

Question 31

Between 1995 and 1998, soon after NAFTA took effect, A. U.S. imports from Mexico fell, but U.S. exports to Mexico fell even more.
B) U.S. imports from Mexico increased, but U.S. exports to Mexico increased even more.
C) total U.S. exports fell, but total U.S. imports fell even more.
D) total U.S. imports increased, but total U.S. exports increased even more.

Question 32

Many individuals around the world oppose the WTO because they believe it

A)unfairly favors the interests of developing countries at the expense of developed countries.
B)unfairly favors the interests of large corporations at the expense of workers.
C)encourages imposition of unnecessarily restrictive environmental protection regulations.
D)prevents young people around the world from entering the workforce as early in life as they choose.

Question 33

Between 1990 and 2007, A. U.S. exports to Canada increased rather steadily.
B) U.S. imports from Mexico decreased precipitously.
C) U.S. exports to Mexico increased rather steadily.
D) both

A)and c).

Question 34

If one nation retaliates against another's tariffs with tariffs of their own the GATT stipulates that the retaliatory tariff must

A)be on the same good.
B)end within a year.
C)be on a good whose sales are roughly similar.
D)be submitted to the WTO for prior approval.

Question 35

From 1999 to 2007, U.S. imports from Mexico grew each year by approximately

A)5%
B)15%
C)22%
D)75%

Question 36

NAFTA has greatly improved cooperation between the U.S. and Mexico in the regulation of

A)undocumented Mexican immigrant workers in the U.S.
B)Mexican banks operating in the U.S.
C)pollution created by maquiladoras operating in Mexico along the U.S. border.
D)travel by U.S. tourists to Mexican beaches during Spring Break.

Question 37

Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If eighty unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while ninety skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the two countries will change by

A)ten additional catheters and thirty additional hammocks.
B)thirty additional catheters and five additional hammocks.
C)ten additional catheters and sixty fewer hammocks.
D)no net change in production of the two goods would occur.

Question 38

Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If one hundred unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while one hundred twenty skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the two countries will change by

A)five additional catheters and thirty fewer hammocks.
B)thirty additional catheters and five additional hammocks.
C)ten additional catheters and sixty additional hammocks.
D)no net change in production of the two goods would occur.

Question 39

Trade disputes between the U.S. and Japan could be mediated by

A)the WTO.
B)NAFTA.
C)UNESCO.
D)U)S. courts.

Question 40

Proposals for bilateral reduction of tariffs in the U.S. and Canada have been developed through

A)GATT.
B)NAFTA.
C)UNESCO.
D)SDR.

Question 41

In late 2008, Congress rejected a proposed trade pact with Chile tied to

A)negotiations with Colombian drug lords
B)an overhaul of the U.S. Postal Service
C)a rescue package for the U.S. auto industry
D)a bailout of the U.S. tobacco industry

Question 42

In late 2008, President Bush proposed that a trade pact with Chile be tied to

A)a rescue package for the U.S. auto industry
B)an overhaul of the U.S. Postal Service
C)negotiations with Colombian drug lords
D)a bailout of the U.S. tobacco industry