Question 1

________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pre-group levels.

Accepted Answer

A)  Trade creation
B)  Trade diversion
C)  Trade exclusion
D)  Trade distortionE) All of the above
F) A) and D)

Question 2

An argument in favor of multilateral trade liberalization (multilateralism)over preferential trade agreements (regionalism)is that multilateralism results in less trade diversion.

Accepted Answer

A) True 
 B)False

Question 3

A long term goal of the EU member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility.

Accepted Answer

A) True 
 B)False

Question 4

In leading the opposition to the adoption of NAFTA,H.Ross Perot argued that NAFTA would lead to

Accepted Answer

A)  a loss of U.S. competitiveness with Canada.
B)  a loss of U.S. manufacturing jobs to Mexico.
C)  a loss of U.S. willingness to negotiate the Uruguay Round.
D)  All of the above.E) A) and D)
F) B) and C)

Question 5

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable.
 
-Refer to the figure above.If A imposes a per unit tariff of $10 on imports from both B and C,it will import

Accepted Answer

A)  40 units from B.
B)  10 units from C.
C)  40 units from each.
D)  40 units from B and 10 units from C.E) A) and B)
F) A) and C)

Question 6

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable.
 
-Refer to the figure above.If A forms a customs union with C,the quantity of trade creation will be

Accepted Answer

A)  100 units.
B)  70 units.
C)  30 units.
D)  None of the above.E) B) and C)
F) All of the above

Question 7

Which of the following countries is not a member of NAFTA?

Accepted Answer

A)  Canada.
B)  The United States of America.
C)  Mexico.
D)  All three countries form part of NAFTA.E) None of the above
F) C) and D)

Question 8

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable.
 
-Refer to the figure above.Domestic producers of this product in A would most prefer

Accepted Answer

A)  a customs union with C.
B)  a customs union with B.
C)  a free trade agreement with both B and C.
D)  no agreement with either country.E) B) and C)
F) B) and D)

Exam 9: Preferential Trade Agreements

________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pre-group levels.

Correct Answer
verified

A long term goal of the EU member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility.

Correct Answer
verified

Which of the following countries is not a member of NAFTA?

Correct Answer
verified

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable. -Refer to the figure above.If A imposes a per unit tariff of $10 on imports from both B and C,it will import

Correct Answer
verified

In leading the opposition to the adoption of NAFTA,H.Ross Perot argued that NAFTA would lead to

Correct Answer
verified

An argument in favor of multilateral trade liberalization (multilateralism)over preferential trade agreements (regionalism)is that multilateralism results in less trade diversion.

Correct Answer
verified

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable. -Refer to the figure above.Domestic producers of this product in A would most prefer

Correct Answer
verified

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable. -Refer to the figure above.If A forms a customs union with C,the quantity of trade creation will be

Correct Answer
verified

Exam 9: Preferential Trade Agreements

________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pre-group levels.

Correct AnswerverifiedShow Answer

A long term goal of the EU member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility.

Correct AnswerverifiedShow Answer

Which of the following countries is not a member of NAFTA?

Correct AnswerverifiedShow Answer

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable. -Refer to the figure above.If A imposes a per unit tariff of $10 on imports from both B and C,it will import

Correct AnswerverifiedShow Answer

In leading the opposition to the adoption of NAFTA,H.Ross Perot argued that NAFTA would lead to

Correct AnswerverifiedShow Answer

An argument in favor of multilateral trade liberalization (multilateralism)over preferential trade agreements (regionalism)is that multilateralism results in less trade diversion.

Correct AnswerverifiedShow Answer

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable. -Refer to the figure above.Domestic producers of this product in A would most prefer

Correct AnswerverifiedShow Answer

Answer the question(s) below based upon the following diagram which depicts country A's market for its importable. -Refer to the figure above.If A forms a customs union with C,the quantity of trade creation will be

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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