Question 1

To improve on GATT the WTO was established. Explain what the WTO is, how it is different from GATT, and what specific functions the WTO is expected to perform.

Accepted Answer

The World Trade Organization (the WTO) i...

Question 2

With which country does the U.S. have the largest trade deficit?

Accepted Answer

A)   Germany
B)   Japan
C)   Canada
D)   India
E)   ChinaF) B) and C)
G) C) and D)

Question 3

Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes
Exports:

Accepted Answer

A)   less expensive.
B)   more expensive.
C)   come under government control.
D)   parallel with imports.
E)   be banned.F) All of the above
G) C) and D)

Question 4

India's average growth rate in GDP has been over:

Accepted Answer

A)   3 percent
B)   5 percent
C)   7 percent
D)   9 percent
E)   10 percentF) B) and D)
G) B) and C)

Question 5

The sovereignty of _______________ will perhaps continue to weaken due to multinationals and the increasing integration of economies.

Accepted Answer

A)   cities
B)   nations
C)   regions
D)   trading blocs
E)   none of the aboveF) A) and E)
G) A) and D)

Question 6

The United States was ranked number _______ on the 2005 Country Innovativeness Ranking.

Accepted Answer

A)   one
B)   two
C)   four
D)   five
E)   sixF) A) and B)
G) B) and E)

Question 7

A monetary union represents the fourth level of integration with a single common
currency among politically independent countries.

Accepted Answer

A) True 
 B)False

Question 8

One of the differences between WTO and GATT is that WTO's dispute settlement mechanism is:

Accepted Answer

A)   inferior.
B)   faster and more automatic.
C)   very limited.
D)   controlled by the World Bank.
E)   controlled by the negotiation section of the United Nations.F) None of the above
G) A) and E)

Question 9

The effect of a monetary union is that members:

Accepted Answer

A)   can buy goods from one another.
B)   refuse to buy goods from nonmembers.
C)   switch to a common currency and a central bank.
D)   give up all sovereignty.
E)   no longer recognize national boundaries.F) B) and E)
G) C) and D)

Question 10

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

Accepted Answer

A) True 
 B)False

Question 11

MNCs that become global at their first inception are called:

Accepted Answer

A)   born last firms.
B)   born first firms.
C)   born again firms.
D)   born global firms.
E)   none of the aboveF) A) and D)
G) C) and D)

Question 12

Doha's Development Agenda (Doha Round)  includes new trade talks-an actions program to resolve developing countries' complaints about the implementation of
Uruguay Round agreements, and an accord on ____________________________.

Accepted Answer

A)   Trade Related Aspects of Intellectual Property Rights
B)   Services Related Aspects of Intellectual Property Rights
C)   Regional Related Aspects of Intellectual Property Rights
D)   Local Related Aspects of Intellectual Property Rights
E)   National Related Aspects of Intellectual Property RightsF) A) and B)
G) None of the above

Question 13

In 2008/2009 Country Competitiveness Report, 5 of the top 10 countries are Asian countries.

Accepted Answer

A) True 
 B)False

Question 14

The Free Trade Areas of the Americas (FTAA)  was proposed in __________________.

Accepted Answer

A)   December 1994.
B)   December 1995.
C)   December 1996.
D)   December 1997.
E)   December 1998.F) A) and C)
G) All of the above

Question 15

GATT's successor is the World Trade Organization (WTO).

Accepted Answer

A) True 
 B)False

Question 16

The World Trade Organization (WTO)  was created in the _____________ of GATT talks---called the Uruguay Round.

Accepted Answer

A)   fifth round
B)   sixth round
C)   seventh round
D)   eighth round
E)   ninth roundF) A) and E)
G) A) and D)

Question 17

A free trade area (FTA) is a formal agreement among two or more countries to
reduce or eliminate customs duties and nontariff trade barriers among partner
countries.

Accepted Answer

A) True 
 B)False

Question 18

Any start-up firm becoming global at its first inception is called as 'born again firm'.

Accepted Answer

A) True 
 B)False

Question 19

As of March 2, 2013, the World Trade Organization (WTO)  has _________ member countries.

Accepted Answer

A)   123
B)   135
C)   142
D)   159
E)   180F) B) and D)
G) A) and C)

Question 20

Future trade flows are likely to move how?

Accepted Answer

A)   Among the Triad nations
B)   Between the Triad nations and the BEMs
C)   Among the BEMs
D)   Between the Triad nations and the developing world
E)   None of the aboveF) C) and D)
G) D) and E)

Exam 2: Economic Environment

A free trade area (FTA) is a formal agreement among two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries.

Correct AnswerverifiedShow Answer

The sovereignty of _______________ will perhaps continue to weaken due to multinationals and the increasing integration of economies.

Correct AnswerverifiedShow Answer

To improve on GATT the WTO was established. Explain what the WTO is, how it is different from GATT, and what specific functions the WTO is expected to perform.

Correct AnswerverifiedThe World Trade Organization (the WTO) i...View AnswerShow Answer

The Free Trade Areas of the Americas (FTAA) was proposed in __________________.

Correct AnswerverifiedShow Answer

Any start-up firm becoming global at its first inception is called as 'born again firm'.

Correct AnswerverifiedShow Answer

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO) was created in the _____________ of GATT talks---called the Uruguay Round.

Correct AnswerverifiedShow Answer

One of the differences between WTO and GATT is that WTO's dispute settlement mechanism is:

Correct AnswerverifiedShow Answer

The effect of a monetary union is that members:

Correct AnswerverifiedShow Answer

MNCs that become global at their first inception are called:

Correct AnswerverifiedShow Answer

Future trade flows are likely to move how?

Correct AnswerverifiedShow Answer

Doha's Development Agenda (Doha Round) includes new trade talks-an actions program to resolve developing countries' complaints about the implementation of Uruguay Round agreements, and an accord on ____________________________.

Correct AnswerverifiedShow Answer

A monetary union represents the fourth level of integration with a single common currency among politically independent countries.

Correct AnswerverifiedShow Answer

GATT's successor is the World Trade Organization (WTO).

Correct AnswerverifiedShow Answer

India's average growth rate in GDP has been over:

Correct AnswerverifiedShow Answer

The United States was ranked number _______ on the 2005 Country Innovativeness Ranking.

Correct AnswerverifiedShow Answer

As of March 2, 2013, the World Trade Organization (WTO) has _________ member countries.

Correct AnswerverifiedShow Answer

In 2008/2009 Country Competitiveness Report, 5 of the top 10 countries are Asian countries.

Correct AnswerverifiedShow Answer

Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes Exports:

Correct AnswerverifiedShow Answer

With which country does the U.S. have the largest trade deficit?

Correct AnswerverifiedShow Answer

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The World Trade Organization (the WTO) i...
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