POS 486 - POS 486 MIDTERM EXAM. QUESTIONS AND ANSWERS. COMPLETE SOLUTIONS. A+ GRADED.
Question 1
0 out of 2.5 points
Which of the following is NOT a
... [Show More] policy that trade liberalization would seek to
eliminate?
Selected
Answer:
4.
domestic content
requirements
Correct
Answer:
2.
trade agreements
Response
Feedback:
Refer to Chapter 1, pp. 22-24, and
Assignment 1
Question 2
2.5 out of 2.5 points
Which of the following does NOT describe the WTO?
Selected
Answer:
2.
was drafted in Havana, Cuba
in 1948
Correct
Answer:
2.
was drafted in Havana, Cuba
in 1948
Response
Feedback:
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 1947-1994. 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
2.5 out of 2.5 points
The WTO relies on
Selected
Answer:
1.
agreement by
consensus
Correct
Answer:
1.
agreement by
consensus
Response
Feedback:
See Chapter 2/Lecture 2 on decisionmaking
in WTO, intergovernmental
bargaining, multiyear rounds and difficulty getting consensus.
Question 4
2.5 out of 2.5 points
The majority of regional trade agreements
Selected
Answer:
4.
are Free Trade
Areas
Correct
Answer:
4.
are Free Trade
Areas
Response
Feedback:
See Chapter 2. For those of us who are visual learners, Oatley has provided
quite a graphic representation on p. 37.
Question 5
2.5 out of 2.5 points
The enforcement problem of trade agreements refers to the fact that
Selected
Answer:
2.
governments cannot be certain that other governments will comply
with the trade agreements they conclude
Correct
Answer:
2.
governments cannot be certain that other governments will comply
with the trade agreements they conclude
Response
Feedback:
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:
2.
has liberalized
trade
Correct
Answer:
2.
has liberalized
trade
Response
Feedback:
Refer to p.
40
Question 7
2.5 out of 2.5 points
The difference between a FTA and a Customs Union
Selected
Answer:
2. [Show Less]