GEB 3373 Exam 3 questions well
answered to pass
General agreement on tariffs and trade - correct answer ✔✔ Intended to promote free-trade
and competition worldwide. The first task was to reduce tariffs barriers worldwide.
Most favored nation principal - correct answer ✔✔ This principle states that any country that
gives preferential trading treatment to one country must give the same treatment to all other
members of the GATT
Uruguay round - correct answer ✔✔ Final round of negotiations under GATT which began in
1986 and was ratified in 1994 this round of negotiations reduced tariffs, but, more importantly,
it created a new organization called the world trade organization
World trade organization - correct answer ✔✔ Officially called the multilateral trading system, is
an organization of 160 member countries and 24 observer countries worldwide. Launched in
1995, it was intended to promote trade flows through predictable trade policies, reduce any
remaining trade barriers through multilateral negotiations, and establish in partial distribution
resolution procedures. It was built to be a continuation of the GATT and it incorporates the
GATT
Cairns Group - correct answer ✔✔ Group of agricultural exporters that wanted the Doha round
to reduce Agricultural barriers but has been unsuccessful in doing so.
National treatment - correct answer ✔✔ Foreigner firms are treated like domestic firms for the
purpose of regulation
Free-trade area - correct answer ✔✔ An area of reduced trade barrier between members of
countries, without a common policy toward non-member countries.
, Trade deflection - correct answer ✔✔ Which occurs when a firm outside the free-trade area
ships goods to a country inside the free-trade area with high tariffs by a routing the goods
through a country inside the free-trade area with low tariffs
Rules of origin - correct answer ✔✔ Specify when a good can be classified as a member or
nonmember good for the purposes of assessing tariffs
Customs union - correct answer ✔✔ Combines the policies of a free-trade area with a common
trade policy towards non-member countries
Common market - correct answer ✔✔ Combines the policies of a customs union but the
illumination of barriers that restrict the free flow of factors of production including labor capital
and technology among member countries
Economic union - correct answer ✔✔ Combines the policies of a common market with a more
complete integration of member countries economies through coordinated economic policies
the euro zone has a common monetary policy dictated by the European Central Bank however it
does not yet have a common fiscal policy
Political union - correct answer ✔✔ Essentially transforms all members into one country
through complete political and economic integration
European Union - correct answer ✔✔ The worlds most important regional trading block,
encompassing 20 countries more than 500 million people
Treaty of Rome - correct answer ✔✔ Establish the European economic community and was
intended to promote regional integration in Europe through the creation of a common market
answered to pass
General agreement on tariffs and trade - correct answer ✔✔ Intended to promote free-trade
and competition worldwide. The first task was to reduce tariffs barriers worldwide.
Most favored nation principal - correct answer ✔✔ This principle states that any country that
gives preferential trading treatment to one country must give the same treatment to all other
members of the GATT
Uruguay round - correct answer ✔✔ Final round of negotiations under GATT which began in
1986 and was ratified in 1994 this round of negotiations reduced tariffs, but, more importantly,
it created a new organization called the world trade organization
World trade organization - correct answer ✔✔ Officially called the multilateral trading system, is
an organization of 160 member countries and 24 observer countries worldwide. Launched in
1995, it was intended to promote trade flows through predictable trade policies, reduce any
remaining trade barriers through multilateral negotiations, and establish in partial distribution
resolution procedures. It was built to be a continuation of the GATT and it incorporates the
GATT
Cairns Group - correct answer ✔✔ Group of agricultural exporters that wanted the Doha round
to reduce Agricultural barriers but has been unsuccessful in doing so.
National treatment - correct answer ✔✔ Foreigner firms are treated like domestic firms for the
purpose of regulation
Free-trade area - correct answer ✔✔ An area of reduced trade barrier between members of
countries, without a common policy toward non-member countries.
, Trade deflection - correct answer ✔✔ Which occurs when a firm outside the free-trade area
ships goods to a country inside the free-trade area with high tariffs by a routing the goods
through a country inside the free-trade area with low tariffs
Rules of origin - correct answer ✔✔ Specify when a good can be classified as a member or
nonmember good for the purposes of assessing tariffs
Customs union - correct answer ✔✔ Combines the policies of a free-trade area with a common
trade policy towards non-member countries
Common market - correct answer ✔✔ Combines the policies of a customs union but the
illumination of barriers that restrict the free flow of factors of production including labor capital
and technology among member countries
Economic union - correct answer ✔✔ Combines the policies of a common market with a more
complete integration of member countries economies through coordinated economic policies
the euro zone has a common monetary policy dictated by the European Central Bank however it
does not yet have a common fiscal policy
Political union - correct answer ✔✔ Essentially transforms all members into one country
through complete political and economic integration
European Union - correct answer ✔✔ The worlds most important regional trading block,
encompassing 20 countries more than 500 million people
Treaty of Rome - correct answer ✔✔ Establish the European economic community and was
intended to promote regional integration in Europe through the creation of a common market
