Question 1

The difference between a free trade area and a customs union is that

Accepted Answer

A)  in a free trade area, governments eliminate tariffs on other members' goods but each member retains independent tariffs on goods entering their market from nonmembers. 
B)  in a free trade area, governments eliminate tariffs on other members' goods but impose a common tariff on goods entering their market from nonmembers. 
C)  in a free trade area, governments eliminate tariffs on both other members' goods and on goods entering their market from nonmembers. 
D)  in a customs union, governments eliminate tariffs on other members' goods but each member retains independent tariffs on goods entering their market from nonmembers. 
E)  in a customs union, governments are allowed to choose which tariffs apply to both other members' goods and on goods entering their market from nonmembers. 
A)  in a free trade area, governments eliminate tariffs on other members' goods but each member retains independent tariffs on goods entering their market from nonmembers. 
B)  in a free trade area, governments eliminate tariffs on other members' goods but impose a common tariff on goods entering their market from nonmembers. 
C)  in a free trade area, governments eliminate tariffs on both other members' goods and on goods entering their market from nonmembers. 
D)  in a customs union, governments eliminate tariffs on other members' goods but each member retains independent tariffs on goods entering their market from nonmembers. 
E)  in a customs union, governments are allowed to choose which tariffs apply to both other members' goods and on goods entering their market from nonmembers. A

Question 2

Two important probable changes within the WTO are

Accepted Answer

A)  the decline of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. 
B)  the emergence of developing countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization. 
C)  the emergence of advanced countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization. 
D)  the emergence of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. 
E)  the decline of advanced countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. 
A)  the decline of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. 
B)  the emergence of developing countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization. 
C)  the emergence of advanced countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization. 
D)  the emergence of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. 
E)  the decline of advanced countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. D

Question 3

A public good is defined by which two characteristics?

Accepted Answer

A)  Excludability and non-rivalry 
B)  Non-excludability and rivalry 
C)  Undersupply and non-rivalry 
D)  Oversupply and rivalry 
E)  Non-excludability and non-rivalry 
A)  Excludability and non-rivalry 
B)  Non-excludability and rivalry 
C)  Undersupply and non-rivalry 
D)  Oversupply and rivalry 
E)  Non-excludability and non-rivalry E

Question 4

Which of the following statements is NOT true about the Doha Round of trade bargaining that began in November 2001?

Accepted Answer

A)  Governments agreed to negotiate additional tariff reductions. 
B)  Governments agreed to incorporate existing negotiations in services. 
C)  Governments agreed to pursue meaningful liberalization of trade in agricultural products. 
D)  Governments agreed to explore aspects of the relationship between trade and the environment. 
E)  Governments agreed to negotiate on competition and government procurement policy. 
A)  Governments agreed to negotiate additional tariff reductions. 
B)  Governments agreed to incorporate existing negotiations in services. 
C)  Governments agreed to pursue meaningful liberalization of trade in agricultural products. 
D)  Governments agreed to explore aspects of the relationship between trade and the environment. 
E)  Governments agreed to negotiate on competition and government procurement policy.

Question 5

The growth of the WTO membership and the emergence of the G-20 as a powerful bloc within the organization

Accepted Answer

A)  has lowered the stakes of trade negotiations. 
B)  has made it easier to find packages acceptable to the full membership. 
C)  has reversed the apparent tendency to place business interests before consumer interests. 
D)  has made it more difficult to find packages acceptable to the full membership. 
E)  has decreased market liberalism. 
A)  has lowered the stakes of trade negotiations. 
B)  has made it easier to find packages acceptable to the full membership. 
C)  has reversed the apparent tendency to place business interests before consumer interests. 
D)  has made it more difficult to find packages acceptable to the full membership. 
E)  has decreased market liberalism.

Question 6

Presently American and European governments remain unwilling to liberalize their farm sectors enough to satisfy India,Brazil,and other Group of 20 (G20)governments.

Accepted Answer

A) True 
 B)False

Question 7

Market liberalism asserts that every country -no matter how rich or poor- enjoys a higher standard of living with trade than it can achieve without trade.

Accepted Answer

A) True 
 B)False

Question 8

Many observers believe that regional trade arrangements (RTAs)pose the single greatest challenge to the multilateral trade system.

Accepted Answer

A) True 
 B)False

Question 9

The WTO reduces the impact of raw power on international trade relations because

Accepted Answer

A)  it does not bring the rule of law to bear in international trade relations. 
B)  it does not provide a dispute-settlement mechanism that allows governments to enforce common rules. 
C)  it brings the rule of law to bear in international trade relations. 
D)  it does not reflect the interests of the most powerful political systems. 
E)  it promotes discriminatory international trade. 
A)  it does not bring the rule of law to bear in international trade relations. 
B)  it does not provide a dispute-settlement mechanism that allows governments to enforce common rules. 
C)  it brings the rule of law to bear in international trade relations. 
D)  it does not reflect the interests of the most powerful political systems. 
E)  it promotes discriminatory international trade.

Question 10

The multilateral trade system is an international political system because

Accepted Answer

A)  it provides rules that regulate how governments can use policies to influence the cross-border flow of goods and services. 
B)  it does not tell governments how they use policies to influence the cross-border flow of goods and services. 
C)  it does not reflect the differential power between developed and developing countries. 
D)  it does not try to enhance the efficiency of the world trade system. 
E)  it did not strengthen the growing interests of Europe and Japan during the Cold War. 
A)  it provides rules that regulate how governments can use policies to influence the cross-border flow of goods and services. 
B)  it does not tell governments how they use policies to influence the cross-border flow of goods and services. 
C)  it does not reflect the differential power between developed and developing countries. 
D)  it does not try to enhance the efficiency of the world trade system. 
E)  it did not strengthen the growing interests of Europe and Japan during the Cold War.

Question 11

Reforms that might make WTO decision making more inclusive

Accepted Answer

A)  would also make it more difficult to reach agreement within the organization. 
B)  would also make it less difficult to reach agreement within the organization. 
C)  would also make it more useful for governments to pursue their trade objectives. 
D)  would also make it less likely that governments will seek alternative organizations. 
E)  would also make it more hostile to developing country interests. 
A)  would also make it more difficult to reach agreement within the organization. 
B)  would also make it less difficult to reach agreement within the organization. 
C)  would also make it more useful for governments to pursue their trade objectives. 
D)  would also make it less likely that governments will seek alternative organizations. 
E)  would also make it more hostile to developing country interests.

Question 12

Define and explain how the principles of market liberalism and nondiscrimination are the core principles at the heart of WTO operations.What is meant by Most-Favored Nation (MFN)rules and when exceptions are allowed?

Accepted Answer

The principles of market liberalism and

Question 13

What are historical examples of hegemonic transition in the past two centuries? Is the United States still an economic hegemon? Will China become the next economic hegemon or will it resemble Japan in the 1980s and 1990s?

Accepted Answer

Historical examples of hegemonic transit

Question 14

Most-Favored Nation (MFN)requires each WTO member to treat all WTO members the same.

Accepted Answer

A) True 
 B)False

Question 15

What is hegemonic stability theory? Why does it depend upon the provision of international public goods? What historical evidence is cited to support hegemonic stability theory?

Accepted Answer

Hegemonic stability theory is a concept

Question 16

In the 1970s and 1980s,many commentators viewed Japan's ascent as a harbinger of US hegemonic decline

Accepted Answer

A)  in spite of increasing US competitive advantage in high technology industries. 
B)  because of increasing US trade surpluses with China. 
C)  because of increasing US trade deficits with Japan. 
D)  because of increasing Japanese protectionism. 
E)  because the end of the Cold War allowed the US to increase its economic alliance with Japan. 
A)  in spite of increasing US competitive advantage in high technology industries. 
B)  because of increasing US trade surpluses with China. 
C)  because of increasing US trade deficits with Japan. 
D)  because of increasing Japanese protectionism. 
E)  because the end of the Cold War allowed the US to increase its economic alliance with Japan.

Question 17

Explain how the operation of global markets depends upon rules created by political structures.Why do most political economists believe that if governments had never created this institutional framework after World War II world trade would not have grown so rapidly?

Accepted Answer

The operation of global markets depends

Question 18

Non-tariff barriers are taxes that governments impose on foreign goods entering the country.

Accepted Answer

A) True 
 B)False

Question 19

How effective has the current Doha rounds of trade negotiations been in resolving conflicts? What are the "Singapore issues"? Why has bridging the gap concerning agriculture and the Singapore issues been so difficult?

Accepted Answer

The current Doha rounds of trade negotia

Question 20

Which of the following is NOTan idea generally advanced by scholars to account for the rapid proliferation of RTAs?

Accepted Answer

A)  To decrease a country's bargaining power in multilateral trade negotiations. 
B)  The EU establishment of free-trade agreements as the first step in the accession process. 
C)  A country's desire to gain a more secure access to the market of a particularly important trading partner. 
D)  A government's need to signal a strong commitment to economic reform. 
E)  The disintegration of the Soviet Union. 
A)  To decrease a country's bargaining power in multilateral trade negotiations. 
B)  The EU establishment of free-trade agreements as the first step in the accession process. 
C)  A country's desire to gain a more secure access to the market of a particularly important trading partner. 
D)  A government's need to signal a strong commitment to economic reform. 
E)  The disintegration of the Soviet Union.

The difference between a free trade area and a customs union is that

Two important probable changes within the WTO are

A public good is defined by which two characteristics?

Which of the following statements is NOT true about the Doha Round of trade bargaining that began in November 2001?

The growth of the WTO membership and the emergence of the G-20 as a powerful bloc within the organization

Presently American and European governments remain unwilling to liberalize their farm sectors enough to satisfy India,Brazil,and other Group of 20 (G20)governments.

Market liberalism asserts that every country -no matter how rich or poor- enjoys a higher standard of living with trade than it can achieve without trade.

Many observers believe that regional trade arrangements (RTAs)pose the single greatest challenge to the multilateral trade system.

The WTO reduces the impact of raw power on international trade relations because

The multilateral trade system is an international political system because

Reforms that might make WTO decision making more inclusive

Define and explain how the principles of market liberalism and nondiscrimination are the core principles at the heart of WTO operations.What is meant by Most-Favored Nation (MFN)rules and when exceptions are allowed?

What are historical examples of hegemonic transition in the past two centuries? Is the United States still an economic hegemon? Will China become the next economic hegemon or will it resemble Japan in the 1980s and 1990s?

Most-Favored Nation (MFN)requires each WTO member to treat all WTO members the same.

What is hegemonic stability theory? Why does it depend upon the provision of international public goods? What historical evidence is cited to support hegemonic stability theory?

In the 1970s and 1980s,many commentators viewed Japan's ascent as a harbinger of US hegemonic decline

Explain how the operation of global markets depends upon rules created by political structures.Why do most political economists believe that if governments had never created this institutional framework after World War II world trade would not have grown so rapidly?

Non-tariff barriers are taxes that governments impose on foreign goods entering the country.

How effective has the current Doha rounds of trade negotiations been in resolving conflicts? What are the "Singapore issues"? Why has bridging the gap concerning agriculture and the Singapore issues been so difficult?

Which of the following is NOTan idea generally advanced by scholars to account for the rapid proliferation of RTAs?

International Political Economy

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Trade and Development II: Economic Reform

Multinational Corporations in the Global Economy

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

A State-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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Exam 2: The World Trade Organization and the World Trade System

The difference between a free trade area and a customs union is that

Two important probable changes within the WTO are

A public good is defined by which two characteristics?

Which of the following statements is NOT true about the Doha Round of trade bargaining that began in November 2001?

The growth of the WTO membership and the emergence of the G-20 as a powerful bloc within the organization

Presently American and European governments remain unwilling to liberalize their farm sectors enough to satisfy India,Brazil,and other Group of 20 (G20)governments.

Market liberalism asserts that every country -no matter how rich or poor- enjoys a higher standard of living with trade than it can achieve without trade.

Many observers believe that regional trade arrangements (RTAs)pose the single greatest challenge to the multilateral trade system.

The WTO reduces the impact of raw power on international trade relations because

The multilateral trade system is an international political system because

Reforms that might make WTO decision making more inclusive

Define and explain how the principles of market liberalism and nondiscrimination are the core principles at the heart of WTO operations.What is meant by Most-Favored Nation (MFN)rules and when exceptions are allowed?

What are historical examples of hegemonic transition in the past two centuries? Is the United States still an economic hegemon? Will China become the next economic hegemon or will it resemble Japan in the 1980s and 1990s?

Most-Favored Nation (MFN)requires each WTO member to treat all WTO members the same.

What is hegemonic stability theory? Why does it depend upon the provision of international public goods? What historical evidence is cited to support hegemonic stability theory?

In the 1970s and 1980s,many commentators viewed Japan's ascent as a harbinger of US hegemonic decline

Explain how the operation of global markets depends upon rules created by political structures.Why do most political economists believe that if governments had never created this institutional framework after World War II world trade would not have grown so rapidly?

Non-tariff barriers are taxes that governments impose on foreign goods entering the country.

How effective has the current Doha rounds of trade negotiations been in resolving conflicts? What are the "Singapore issues"? Why has bridging the gap concerning agriculture and the Singapore issues been so difficult?

Which of the following is NOTan idea generally advanced by scholars to account for the rapid proliferation of RTAs?

International Political Economy

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Trade and Development II: Economic Reform

Multinational Corporations in the Global Economy

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

A State-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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