Arizona State University Pos 486 | Pos486 Finals Pos 486 | Pos486 Finals

ARIZONA STATE UNIVERSITY POS 486 | POS486 FINALS POS 486 | POS486 FINALS • Question 1 0 out of 2.5 points Which of the following is NOT a policy that trade liberalization would seek to eliminate? Selected Answer: Correct Answer: Response Feedback: 4. domestic content requirements 2. trade agreements Refer to Chapter 1, pp. 22-24, and Assignment 1 • Question 2 Which of the following does NOT describe the WTO? 2.5 out of 2.5 points Selected Answer: Correct Answer: Response Feedback: 2. was drafted in Havana, Cuba in 1948 2. was drafted in Havana, Cuba in 1948 The questions asks which is NOT correct. We know that a trade institution was discussed at Bretton Woods but not created. We also know that the WTO didn't come into creation until 1995, with the GATT guiding international trade from . We have also learned that it covers international trade for most countries globally, that it has a broad mandate, and that it expanded GATT. Therefore, the correct answer is 2. See Chapter 2/Lecture 2. • Question 3 The WTO relies on 2.5 out of 2.5 points Selected Answer: Correct Answer: Response Feedback: 1. agreement by consensus 1. agreement by consensus See Chapter 2/Lecture 2 on decision-making in WTO, intergovernmental bargaining, multiyear rounds and difficulty getting consensus. • Question 4 The majority of regional trade agreements 2.5 out of 2.5 points Selected Answer: Correct Answer: Response Feedback: 4. are Free Trade Areas 4. are Free Trade Areas See Chapter 2. For those of us who are visual learners, Oatley has provided quite a graphic representation on p. 37. • Question 5 The enforcement problem of trade agreements refers to the fact that 2.5 out of 2.5 points Selected Answer: Correct Answer: Response Feedback: 2. governments cannot be certain that other governments will comply with the trade agreements they conclude 2. governments cannot be certain that other governments will comply with the trade agreements they conclude Refer to pp. 58-59 • Question 6 2.5 out of 2.5 points If more trade is created than diverted, a regional trade agreement (RTA) Selected Answer: Correct Answer: Response Feedback: 2. has liberalized trade 2. has liberalized trade Refer to p. 40