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WorksheetsFinal Examination Questions 2025
Total questions: 46
Worksheet time: 23mins
What is the broadest meaning of International Commerce?
Only buying and selling goods between two companies
Any domestic transaction inside one country
Activities of states dealing with cross-border economic issues
Only tourism and overseas travel
Which statement best describes the difference between *trade* and international commerce?
Trade is services only; international commerce is goods only.
Trade is a part of international commerce, which also includes policies, law, and institutions.
International commerce is a part of trade in goods.
There is no difference; the two terms are the same.
Which of the following is NOT usually included in the scope of international commerce?
Trade in goods and services
Flows of labor and capital
Intellectual property rights
Local street market inside one village
Which of the following is a major recent change in the international trade environment?
Return to complete autarky (no trade)
Shift toward services and digital trade
End of all regional trade agreements
Elimination of all non-tariff measures
Global trade today is characterized by the coexistence of:
Only multilateralism
Only bilateralism
Multilateralism, regionalism, and bilateralism
Only regionalism
New protectionism mainly means:
Only raising tariffs on all goods
Using non-tariff measures, standards, and regulations to protect domestic industries
Closing borders to all foreign capital
Completely removing customs duties
GATT (General Agreement on Tariffs and Trade) was first created in 1947 mainly to:
Promote colonial trade and monopolies
Eliminate all immigration
Reduce tariffs and discriminatory trade barriers after World War II
Control exchange rates and monetary policy
Which of the following was a limitation of the GATT system?
It was a permanent international organization.
It covered goods, services, and intellectual property.
It had weak legal enforcement and dispute settlement.
It had no role in tariff reduction.
The WTO was established in 1995 by which agreement?
Bretton Woods Agreement
Marrakesh Agreement
Ottawa Agreement
Paris Protocol
Which of the following areas are covered by the WTO, unlike the original GATT?
Goods only
Goods and agriculture only
Goods, services, and intellectual property rights
Only exchange rate policy
Under the WTO, the Most-Favoured Nation (MFN) principle means:
A country can choose one best friend and give it special treatment only.
All WTO members must be treated no less favourably than any other member.
Developing countries must always get higher tariffs.
Only neighbours can receive tariff reductions.
The National Treatment principle means that:
Domestic products must receive higher subsidies than imports.
Imported products are treated the same as domestic products after entering the market.
Imports are always taxed more than domestic goods.
Only services receive equal treatment, not goods.
Which WTO body is responsible for settling trade disputes between members?
Trade Policy Review Body (TPRB)
Dispute Settlement Body (DSB)
World Bank
UNCTAD
Vietnam became a member of the WTO in 2007. One major impact of its accession was:
Closing markets to foreign investment
Huge reduction in exports and FDI
Strong growth in exports and increased foreign direct investment
Withdrawal from all regional FTAs
What is the basic definition of a tariff?
A free gift from government to exporters
A tax imposed by a government on goods crossing borders
A subsidy to domestic producers
A loan from the World Bank
An ad valorem tariff is:
A fixed amount per unit (e.g., $10 per ton)
A percentage of the product’s value (e.g., 10% of price)
A mix of quota and license
A subsidy for exporters
Which of the following is NOT an economic effect of a tariff?
Raising domestic prices
Providing protection for domestic industries
Generating customs revenue for the government
Always increasing export volume
A tariff concession under GATT Article II means that a country:
Is free to raise tariffs to any level
Commits not to raise tariffs above an agreed bound rate
Stops all imports of agricultural products
Provides free imports for all developing countries
In a customs union, which of the following is usually true?
Each member keeps its own external tariff schedule.
Members abolish tariffs among themselves and adopt a common external tariff.
Members cut all trade with non-members.
It applies only to services trade.
Trade creation in a customs union occurs when:
High-cost domestic production is replaced by lower-cost imports from member countries.
Low-cost non-member imports are replaced by high-cost member imports.
All members increase tariffs against each other.
Exports to non-members fall to zero.
Trade diversion refers to a situation where:
Trade moves from high-cost to low-cost producers
Trade moves from low-cost non-members to higher-cost members due to tariffs
There is no change in trade patterns
All trade becomes digital
The idea of a reciprocal tariff as used by the U.S. is best described as:
Charging zero tariffs for all partners
Matching another country’s tariff rate with the same or similar level
Giving lower tariffs to enemies
Setting tariffs only on agricultural goods
Technical Barriers to Trade (TBT) mainly include:
Exchange rate controls
Product standards, technical regulations, and conformity assessment
Tariffs on agricultural goods only
Quotas on foreign workers
Sanitary and Phytosanitary (SPS) measures aim primarily to:
Protect domestic industries from competition
Control exchange rates
Protect human, animal and plant life or health from food and pest risks
Regulate trademarks and patents
Which WTO principles apply to TBT and SPS measures?
National Treatment and MFN (non-discrimination)
Only MFN, not National Treatment
Only National Treatment, not MFN
No WTO principles apply to TBT/SPS
A conformity assessment procedure is mainly related to:
Checking a firm’s bank account
Testing, inspecting, and certifying whether a product meets standards
Measuring exchange rate risks
Calculating customs valuation only
Why can TBT measures be a serious barrier for exporters from Vietnam or Myanmar?
They always reduce tariffs to zero.
They may increase production and testing costs and delay market entry.
They remove all labeling requirements.
They guarantee automatic approval of all products.
Which of the following is an example of a TBT measure (not SPS)?
Quarantine requirement for imported cows to prevent disease
Maximum pesticide residue limit in imported vegetables
Labeling requirement for energy efficiency on electrical appliances
Ban on imports due to animal disease outbreak
Which international organization develops many *technical standards* like ISO 9001 that help reduce TBT?
IMF
International Organization for Standardization (ISO)
World Bank
UN Security Council
Trade friction can be described as:
Complete absence of trade between two countries
Conflicts arising from trade and economic activities between countries
Only cultural exchange problems
Only military conflict
Which is a common cause of trade friction?
Equal trade balance between two countries
Lack of any industrial policy
Trade imbalances and government subsidies
No political differences
In the Korea–China garlic dispute, Korea’s initial action was to:
Give subsidies to Chinese farmers
Impose a very high tariff as a safeguard measure on Chinese garlic
Ban all Chinese tourists
Stop exporting mobile phones to China
China’s response in the garlic dispute was to:
Accept the Korean tariff without action
Immediately go to the World Bank
Restrict imports of Korean mobile phones and polyethylene
Lower its garlic export price
Intellectual property (IP) mainly refers to:
Physical goods like machines and buildings
Land and natural resources
Creations of the mind such as inventions, music, and software
Only government documents
Which WTO agreement sets minimum standards for intellectual property protection?
GATS
TRIPS
AoA
ATC
A patent is best described as:
A sign or logo identifying a company’s products
An exclusive right to use an invention for a limited period
A special design or pattern of clothing
A secret business formula never protected by law
A trademark mainly protects:
The story of a movie
A musical composition
A sign, word, or logo that identifies the source of goods or services
A new chemical invention
Which of the following is an example of copyright?
A new machine for production
A geographic name like “Champagne”
A computer program or a song
A company name and logo
One major international issue in IPR is:
How to reduce tariffs on cars
Balancing patent protection with access to medicines in poor countries
Setting world oil prices
Fixing exchange rates between currencies
A key difference between goods and services is that services are usually:
Tangible and easy to store
Intangible and often produced and consumed at the same time
Always produced in factories
Free from any regulation
In GATS Mode 2 – Consumption abroad, which is the best example?
A student from Vietnam studies at a university in Korea.
A Korean bank opens a branch in Myanmar.
An engineer from Myanmar works temporarily in Japan.
A Korean company sells online consulting to a firm in Vietnam.
GATS Mode 3 – Commercial presence refers to:
Sending services through the internet
Consumer traveling abroad to purchase services
A foreign company establishing a subsidiary, branch, or office in another
country
Migration of workers for permanent residence
GATS Mode 4 – Presence of natural persons involves:
Individuals moving temporarily to another country to provide services
Goods shipped across borders
Services provided only by robots
Investment in foreign government bonds
Under GATS, market access commitments mean that a country:
Never allows foreign service suppliers
Specifies which service sectors are opened and what restrictions remain
Automatically liberalizes all services
Only opens the banking sector
Which of the following is NOT a typical barrier in trade in services?
Professional qualification and license requirements
Visas and work permit rules
Complex domestic regulations
Free and automatic entry for all foreign workers
Which statement about services in the modern economy is correct?
Services trade is less important and always grows slower than goods trade.
Services are becoming more important and trade in services has grown rapidly.
Services are not influenced by globalization.
Services cannot be traded across borders.
