ALL BUT WHICH ONE OF THE FOLLOWING ARE TOOLS OF GOVERNMENT TRADE POLICY?

21 May ALL BUT WHICH ONE OF THE FOLLOWING ARE TOOLS OF GOVERNMENT TRADE POLICY?

David Ricardo (1817) developed the theory of:

Competitive advantage

Comparative advantage

Absolute advantage

First-mover advantages

2 Porter’s diamond theory focuses on all but which one of the following?

Factor conditions

Location advantages

Firm strategy and structure

Government policies

3 Those in favour of free trade argue that:

All countries benefit from the lowering of tariff barriers.

Domestic employment is a priority for trade policies.

National strategic concerns should dominate trade policies.

Consumers prefer locally produced goods.

4 All but which one of the following are tools of government trade policy?

Tariffs

Non-tariff barriers

Multilateral agreements

Import quotas

5 In what ways are government subsidies protectionist?

They keep out imports

They help domestic producers

They give domestic producers an advantage in global markets

They help create employment

6 Which of the following is not among the GATT principles?

Most favoured nation

Reciprocity in tariff reduction

Principle of national treatment

Principle of safeguarding national interests

7 What is the aim of the WTO’s dispute resolution process?

To punish countries which trade unfairly

To impose anti-dumping penalties

To resolve trade disputes through impartial panels

To resolve trade disputes through judicial procedure

8 What is the main reason for the collapse of the Doha round of multilateral negotiations?

Unwillingness of the US to open markets to products from developing countries

Differing perspectives of developed and developing countries

Disagreement over labour and environmental standards

The activities of anti-globalization protesters

9 The G8 is made up of:

China, USA, France , UK, Germany, Italy, Russia and Japan.

EU, Asean Group, NAFTA, Russia, China, Japan and Canada.

UK, USA, Russia, Germany, France, Italy, Canada, Japan.

Japan, China, Italy, France, Germany, Russia, USA, and UK.

10 Why have bilateral agreements proliferated in recent years?

Because they benefit countries more that multilateral agreements

Because they can be negotiated more quickly than multilateral agreements

Because they are preferred by MNEs

Because countries tend to be of equal bargaining power