Question 1

In comparison with the General Agreement on Tariffs and Trade (GATT),which of the following statements is true of the World Trade Organization (WTO)?

Accepted Answer

The WTO includes a more effective trade dispute settlement mechanism compared to GATT, providing a structured process for resolving trade disputes between member countries.

Question 2

The most (in)famous loophole in merchandise trade created through the General Agreement on Tariffs and Trade (GATT)was the _____.

Accepted Answer

The Multifiber Arrangement (MFA) was a significant loophole in GATT as it allowed countries to impose quotas on textile and apparel imports, which was contrary to the general principles of free trade promoted by GATT.

Question 3

Which of the following is a disadvantage of regional economic integration?

Accepted Answer

Regional economic integration can lead to some loss of sovereignty as member countries may have to adhere to common policies and regulations, limiting their individual control over economic matters.

Question 4

Which of the following is a difference between the General Agreement on Tariffs and Trade (GATT)and the World Trade Organization (WTO)?

Accepted Answer

The GATT did not cover Intellectual Property protection, whereas the WTO includes IP protection through the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

Question 5

In 2013 in Bali,Indonesia,159 members of the WTO struck deal that would cut red tape at customs posts around the world and serve as the only tangible achievement of the Doha Round.This deal was known as the:

Accepted Answer

The Trade Facilitation Agreement (TFA) was the deal struck in 2013 in Bali, Indonesia, aimed at cutting red tape at customs posts globally, marking a significant achievement of the Doha Round.

Question 6

The North West Trading Zone (NWTZ)is a free trade area comprising eleven countries in the Moresian continent.The member countries of this free trade area use different currencies.In addition to imposing common external policies,the NWTZ permits the free movement of goods and people.In this case,the NWTZ is a _____.

Accepted Answer

A common market allows for the free movement of goods and people among member countries, which is a characteristic of the NWTZ as described.

Question 7

Today's EU established a _____ when 18 EU members adopted of the euro.

Accepted Answer

The adoption of the euro by 18 EU members signifies the establishment of a monetary union, where member countries share a common currency and monetary policy.

Question 8

Lumberne is a continent comprising 18 countries.Currently,Lumberne is a free trade area and an economic union including all 18 countries as members of free trade.Although each country is politically independent,governments of at least 12 countries are negotiating to form a common government.If Lumberne comes to be led by a single government,it would be a _____.

Accepted Answer

A political union involves the unification of multiple countries under a single government, which is what is being negotiated in Lumberne.

Question 9

Praziland is one of the five countries in a free trade area (FTA).In this case,which of the following is likely to be true of the FTA?

Accepted Answer

The primary characteristic of a free trade area (FTA) is that member countries agree to eliminate tariffs and other trade barriers among themselves, facilitating easier and increased trade within the group.

Question 10

The North Symorian Trade Confederate (NSTC)was established to promote regional economic integration within six countries belonging to the same subcontinent.This free trade area has imposed common external policies on nonparticipants.In this case,NSTC is a _____.

Accepted Answer

A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The NSTC, by promoting regional economic integration and imposing common external policies on nonparticipants, fits the definition of a customs union.

Question 11

The South East Trading Zone (SETZ)is a monetary union comprising eleven member countries. In this case,which of the following statements is true?

Accepted Answer

The answer of The South East Trading Zone (SETZ)is a...

Question 12

Which of the following was the General Agreement on Tariffs and Trade's (GATT's)successor?

Accepted Answer

The World Trade Organization (WTO) was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT) to oversee and facilitate international trade agreements and resolve trade disputes.

Question 13

Which of the following was agreed upon and launched at the end of the Uruguay Round in 1994?

Accepted Answer

The World Trade Organization (WTO) was established at the end of the Uruguay Round in 1994 to replace the General Agreement on Tariffs and Trade (GATT) as the global international organization dealing with the rules of trade between nations.

Question 14

In the aftermath of ____ the world began to unify behind global economic integration,which has the fundamental goal of promoting peace.

Accepted Answer

World War II (WWII) led to efforts to promote global economic integration to prevent future conflicts, resulting in initiatives like the United Nations and the Bretton Woods system.

Question 15

Which of the following improvements resulted after the establishment of the General Agreement on Tariffs and Trade (GATT)?

Accepted Answer

GATT led to significant trade liberalization, resulting in trade growth often outpacing GDP growth.

Question 16

Which of the following was NOT an ambition set out by the Doah Round?

Accepted Answer

Increasing tariffs was not an ambition set out by the Doha Round. The Doha Round aimed to reduce trade barriers and promote free trade.

Question 17

Which of the following is a reason that enforcement by the WTO faces controversy?

Accepted Answer

The WTO's enforcement mechanisms can lead to a loss of sovereignty for the losing country, as they may be required to change their laws or policies to comply with international trade rules.

Question 18

Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's)policies?

Accepted Answer

GATT primarily focused on trade in goods and did not initially cover trade in services or intellectual property protection, which was seen as a limitation.

Question 19

The Forman Free Trade Agreement (FFTA)is an economic union established to promote regional economic integration among its five member countries.In this case,which of the following is likely to be true?

Accepted Answer

Economic unions like the FFTA typically involve coordination and harmonization of monetary, fiscal, and taxation policies among member countries to promote regional economic integration.

Question 20

In the context of the World Trade Organization's (WTO's)trade dispute settlement mechanisms,the losing country:

Accepted Answer

The answer of In the context of the World Trade...

Quiz 8: Capitalizing On Global Regional Integration

In comparison with the General Agreement on Tariffs and Trade (GATT) ,which of the following statements is true of the World Trade Organization (WTO) ?

The most (in) famous loophole in merchandise trade created through the General Agreement on Tariffs and Trade (GATT) was the _____.

Which of the following is a disadvantage of regional economic integration?

Which of the following is a difference between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) ?

In 2013 in Bali,Indonesia,159 members of the WTO struck deal that would cut red tape at customs posts around the world and serve as the only tangible achievement of the Doha Round.This deal was known as the:

Today's EU established a _____ when 18 EU members adopted of the euro.

Praziland is one of the five countries in a free trade area (FTA) .In this case,which of the following is likely to be true of the FTA?

The North Symorian Trade Confederate (NSTC) was established to promote regional economic integration within six countries belonging to the same subcontinent.This free trade area has imposed common external policies on nonparticipants.In this case,NSTC is a _____.

The South East Trading Zone (SETZ) is a monetary union comprising eleven member countries. In this case,which of the following statements is true?

Which of the following was the General Agreement on Tariffs and Trade's (GATT's) successor?

Which of the following was agreed upon and launched at the end of the Uruguay Round in 1994?

In the aftermath of ____ the world began to unify behind global economic integration,which has the fundamental goal of promoting peace.

Which of the following improvements resulted after the establishment of the General Agreement on Tariffs and Trade (GATT) ?

Which of the following was NOT an ambition set out by the Doah Round?

Which of the following is a reason that enforcement by the WTO faces controversy?

Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies?

The Forman Free Trade Agreement (FFTA) is an economic union established to promote regional economic integration among its five member countries.In this case,which of the following is likely to be true?

In the context of the World Trade Organization's (WTO's) trade dispute settlement mechanisms,the losing country: