Q1. What are the types of an agreement in Chapter 8?

  1. Bilateral, Regional, Global
  2. Unilateral and Universal
  3. Trilateral and Global
  4. Bilateral, Regional, Universal

Q2. What does GATT stand for?

  1. General Agreement of Taxes and Trade
  2. General Agreement of an Charlie Foxtrot
  3. General Agreement of Tariffs and Trade
  4. None of the above

Q3. In 2001 how many countries was a member of the WTO?

  1. 20
  2. 42
  3. 148
  4. 220

Q4. What are the major types of economic integration?

  1. Free Trade Area
  2. Custom Union
  3. Common Market
  4. All of the above

Q5. Which of the following does Regional integration not effect?

  1. Social
  2. Cultural
  3. Economic
  4. None of the above

Answers:

1) A

2) C

3) C

4) D

5) D

1. Two countries decide to cooperate closer together, usually in the form of tariff reductions is what form of integration?

a. economic integration

b. bilateral integration

c. regional integration

d. national integration

2. Customs Unions commonly ....?

a. apply a common external tariff on all goods brought into the region.

b. shift to more efficient producersfor reasons of comparative advantage.

c. apply barriers of trade between non member countries.

d.create political alliances with external countries to help reduce external tariffs.

3. The overall growth in the market and the impact on a company caused by expanding production and by the company's ability to achieve greater economies of scale?

a. Static effects

b. Trade diversion

c. Free Trade Agreement

d.Dynamic effects

4.The objective of this legislation was to provide farmers with a reasonable standard of living and consumers withqualityfood at fair prices.

a. FarmersSubtle Agreement

b. Agricultural Observatory Notice

c. Common Agricultural Policy

d. Agricultural Price Standard

5. NAFTA is a (fill in the blank) and not a customs union?

a. Trade Diversion

b. Common Market

c. General Agreement on Tariffs and Trade

d. Free Trade Agreement

Answers:

1. B

2. A

3. D

4. C

5. D

1.)What is the highest decision-making unit in the WTO?

a)Services Council

b)General Council

c)Ministerial Council

d)Goods Council

2.)Static effects are:

a)the shifting of resources from inefficient to efficient companies as trade barriers fall

b)the overall growth in the market

c)the impact on the economy

d)the end of tariffs

3.)What was the EU originally called?

a)European Community

b)European Economic Community

c)European Parliament

d)European Commission

4.)Which part of the EU consists of ensuring consistent interpretation and application of EU treaties?

a)European Council

b)European Commission

c)European Parliament

d)European Court of Justice

5.)Which country is in MERCOSUR?

a)Argentina

b)Mexico

c)Chile

d)China

Correct Answers:

1….c

2….a

3….b

4….d

5….a

1.)What organization is the predecessor of GATT?

a.)The European Union

b.)NATO

c.)The World Trade Organization

d.)The World Bank

2.)What was the final GATT round?

a.)The Italian Round

b.)The Uruguay Round

c.)The Belgium Round

d.)The Moroccan Round

3.)What is the goal of the Free Trade Agreement?

a.)To have free trade all over the world

b.)To abolish all tariffs between member countries

c.)To only trade with politically free countries

d.)None of the above

4.)What is the largest and most comprehensive regional economic group?

a.)NAFTA

b.)CAPCOM

c.)EU

d.)CAFTA

5.)How many members make up the European Parliament?

a.)300

b.)250

c.)624

d.)716

Answers: 1.)—c 2.)—b 3.)—b 4.)—c 5.)—c