Global Commerce Quiz Day 4

What is the primary objective of the WTO (World Trade Organization)?

• To facilitate trade between countries.

• To promote trade war.

• To impose trade barriers.

• To control product prices.

What is dumping in the context of international trade?

• A practice of selling at a price below the cost of production

• A tax imposed on imports

• A trade agreement between several countries

• A method to increase product prices

What is the main difference between a free trade area and a customs union?

• • A customs union allows the free movement of people

• • A free trade area has common tariffs

• • A customs union has a common trade policy

• • A free trade area has import restrictions

What is the effect of international trade on economic growth according to empirical studies?

• • International trade leads to an increase in unemployment

• • International trade causes an economic recession

• • International trade stimulates economic growth through technology transfers

• • International trade has no impact on economic growth

What is the primary objective of customs tariffs?

• • Facilitate international trade

• • Promote foreign imports

• • Protect domestic industries

• • Reduce government revenues

What is the meaning of the acronym GATT in the context of global trade?

• • Global Agreements of Transport and Transit

• • Group for Analysis of Tariffs and Taxes

• • Guard Assistance for Transport and Transit

• • General Agreement on Tariffs and Trade

What is the objective of protectionist instruments in international trade?

• • Protect domestic industries from unfair foreign competition

• • Facilitate unrestricted imports

• • Promote fair competition

• • Encourage government subsidies to foreign businesses