GEB 6365 Final Exam questions with
100% complete solutions
The Most-favored-nation (MFN) Clause of GATT refers to:
a. GATT-member countries that maintain favorable
conditions for trade.
b. Countries favored in trade concessions.
c. The granting of no special trade concessions to any
nation
d. Bilateral trade concessions applied to members of the
same trading bloc.
e. A requirement that a trade concession that is granted to
one country must be granted to all member countries. - correct answer ✔✔ e. A requirement
that a trade concession that is granted to
one country must be granted to all member countries.
The infant-industry argument holds that:
a. Industries producing infant products should get
government subsidies and protection.
b. Industries particularly important for the
national economy should be subsidized.
c. Government subsidies should be granted to
growth industries rather than mature ones.
d. An industry needs government protection from
imports until it becomes competitive enough in
,world markets. - correct answer ✔✔ d. An industry needs government protection from
imports until it becomes competitive enough in
world markets.
Terms of trade refers to:
a. The quantity of imports that a given quantity of a
country's exports can buy.
b. Specific requirements placed on imports at the
port of entry.
c. Terms agreed upon by two countries to regulate
bilateral trade between them.
d. The ratio of export prices to import prices (Px/Pm).
e. Both a and d. - correct answer ✔✔ e. Both a and d.
Import substitution is:
a. An industrialization program emphasizing
industries that will have export capabilities.
b. An industrialization policy promoting products
that would otherwise be imported.
c. The quantity of imports that a given quantity of a
country's exports can buy.
d. The protection of strategic industries. - correct answer ✔✔ b. An industrialization policy
promoting products
that would otherwise be imported.
Export-led development refers to:
,a. A country's efforts to promote its exports in order
to cut its trade deficits.
b. An industrialization policy promoting products
that would otherwise be imported.
c. An industrialization program emphasizing
industries that will have export capabilities.
d. The use of revenue from export tariffs to provide
infrastructure development - correct answer ✔✔ c. An industrialization program emphasizing
industries that will have export capabilities.
Dumping is:
a. The underpricing of exports.
b. The overpricing of imports.
c. The promotion of exports.
d. The limiting of imports.
e. Exports at prices below "fair market price"
f. Both a and e - correct answer ✔✔ f. Both a and e
An optimum tariff is:
a. A tax assessed on goods shipped internationally on a per-unit basis.
b. A tax assessed on goods shipped internationally
as a percentage of the goods' value.
c. A percentage tax on the total value of goods shipped internationally, which is argued to
impose a higher percentage on the goods' manufactured portion of value.
d. The lowering of a foreign producer's price as a result of an imposed import tax. - correct
answer ✔✔ d. The lowering of a foreign producer's price as a result of an imposed import tax.
, The essential-industry argument holds that:
a. A country should protect those industries that are essential for its long-term development
b. Governments should single out important industries for governmental subsidies.
c. Industries with potential export capabilities should be protected.
d. Certain industries should be protected for national security reasons.
e. Both a and d - correct answer ✔✔ d. Certain industries should be protected for national
security reasons.
A compound duty is:
a. The increase of a foreign producer's price as a
result of an imposed import tax.
b. A tax on the total value of goods shipped
internationally
c. A tax per unit, plus a tax on the value, of goods
shipped internationally.
d. A governmental tax on goods shipped
internationally, based either on value or per unit. - correct answer ✔✔ c. A tax per unit, plus a
tax on the value, of goods
shipped internationally.
At the conclusion of the Uruguay Round the secretariat was replaced with the World Trade
Organization (WTO). This is important because:
a. Regional trading blocs such as NAFTA, EU, and
ASEAN are more likely to cooperate with the WTO
than with a GATT secretariat.
b. European Union members, particularly France,
threatened to boycott future GATT rounds because
100% complete solutions
The Most-favored-nation (MFN) Clause of GATT refers to:
a. GATT-member countries that maintain favorable
conditions for trade.
b. Countries favored in trade concessions.
c. The granting of no special trade concessions to any
nation
d. Bilateral trade concessions applied to members of the
same trading bloc.
e. A requirement that a trade concession that is granted to
one country must be granted to all member countries. - correct answer ✔✔ e. A requirement
that a trade concession that is granted to
one country must be granted to all member countries.
The infant-industry argument holds that:
a. Industries producing infant products should get
government subsidies and protection.
b. Industries particularly important for the
national economy should be subsidized.
c. Government subsidies should be granted to
growth industries rather than mature ones.
d. An industry needs government protection from
imports until it becomes competitive enough in
,world markets. - correct answer ✔✔ d. An industry needs government protection from
imports until it becomes competitive enough in
world markets.
Terms of trade refers to:
a. The quantity of imports that a given quantity of a
country's exports can buy.
b. Specific requirements placed on imports at the
port of entry.
c. Terms agreed upon by two countries to regulate
bilateral trade between them.
d. The ratio of export prices to import prices (Px/Pm).
e. Both a and d. - correct answer ✔✔ e. Both a and d.
Import substitution is:
a. An industrialization program emphasizing
industries that will have export capabilities.
b. An industrialization policy promoting products
that would otherwise be imported.
c. The quantity of imports that a given quantity of a
country's exports can buy.
d. The protection of strategic industries. - correct answer ✔✔ b. An industrialization policy
promoting products
that would otherwise be imported.
Export-led development refers to:
,a. A country's efforts to promote its exports in order
to cut its trade deficits.
b. An industrialization policy promoting products
that would otherwise be imported.
c. An industrialization program emphasizing
industries that will have export capabilities.
d. The use of revenue from export tariffs to provide
infrastructure development - correct answer ✔✔ c. An industrialization program emphasizing
industries that will have export capabilities.
Dumping is:
a. The underpricing of exports.
b. The overpricing of imports.
c. The promotion of exports.
d. The limiting of imports.
e. Exports at prices below "fair market price"
f. Both a and e - correct answer ✔✔ f. Both a and e
An optimum tariff is:
a. A tax assessed on goods shipped internationally on a per-unit basis.
b. A tax assessed on goods shipped internationally
as a percentage of the goods' value.
c. A percentage tax on the total value of goods shipped internationally, which is argued to
impose a higher percentage on the goods' manufactured portion of value.
d. The lowering of a foreign producer's price as a result of an imposed import tax. - correct
answer ✔✔ d. The lowering of a foreign producer's price as a result of an imposed import tax.
, The essential-industry argument holds that:
a. A country should protect those industries that are essential for its long-term development
b. Governments should single out important industries for governmental subsidies.
c. Industries with potential export capabilities should be protected.
d. Certain industries should be protected for national security reasons.
e. Both a and d - correct answer ✔✔ d. Certain industries should be protected for national
security reasons.
A compound duty is:
a. The increase of a foreign producer's price as a
result of an imposed import tax.
b. A tax on the total value of goods shipped
internationally
c. A tax per unit, plus a tax on the value, of goods
shipped internationally.
d. A governmental tax on goods shipped
internationally, based either on value or per unit. - correct answer ✔✔ c. A tax per unit, plus a
tax on the value, of goods
shipped internationally.
At the conclusion of the Uruguay Round the secretariat was replaced with the World Trade
Organization (WTO). This is important because:
a. Regional trading blocs such as NAFTA, EU, and
ASEAN are more likely to cooperate with the WTO
than with a GATT secretariat.
b. European Union members, particularly France,
threatened to boycott future GATT rounds because
