Global Trade Environment

How does the WTO’s principle of "Most Favored Nation" (MFN) impact global trade relations?

• It allows countries to impose higher tariffs on specific trading partners.

• It ensures that all member countries receive equal trade advantages.

• It restricts trade to only developed nations.

• It eliminates the need for bilateral trade agreements.

How does the African Continental Free Trade Area (AfCFTA) aim to boost intra-African trade?

• By creating a common currency for all African nations

• By restricting trade with non-African countries

• By eliminating all tariffs on goods traded within Africa
  

• By focusing only on agricultural exports

What is the primary role of the World Trade Organization (WTO) in global trade?

• To facilitate trade negotiations and resolve disputes

• To impose tariffs on member countries

• To provide financial aid to developing nations

• To regulate currency exchange rates

What was a major change introduced by the USMCA compared to NAFTA?

• Stricter rules of origin for the automotive industry

• Elimination of all tariffs between member countries

• Creation of a common currency

• Removal of intellectual property protections

Which European Union (EU) policy allows for the free movement of goods, services, capital, and labor among member states?

• Common Agricultural Policy

• Schengen Agreement

• Eurozone

• Single Market

What was a significant economic implication of Brexit for the United Kingdom?

• Immediate adoption of the Euro

• Increased influence in EU decision-making

• Loss of access to the EU Single Market

• Elimination of all trade barriers with the EU

Which of the following is a major challenge for global marketers expanding into Africa?

• Uniform regulatory environment across all countries

• Lack of natural resources

• High levels of infrastructure development

• Diverse cultural and legal systems

The World Trade Organization (WTO) primarily aims to:

• Eliminate all trade barriers between member nations.

• Establish a global currency and central bank.

• Enforce strict labor and environmental standards across all countries.

• Provide a forum for negotiating trade agreements and resolving trade disputes.

Which of the following best differentiates a customs union from a free trade area?

• Customs unions eliminate all trade barriers, while free trade areas only reduce tariffs.

• Free trade areas involve more member countries than customs unions.

• Customs unions establish a common external tariff, while free trade areas do not.

• Customs unions focus on services, while free trade areas focus on goods.

The USMCA, replacing NAFTA, primarily aimed to:

• Increase tariffs on all goods traded between the US, Canada, and Mexico.

• Force the integration of national currencies.

• Strengthen labor and environmental provisions and update rules of origin.

• Eliminate all agricultural subsidies within the region.