Lecture 12 - Revision Quiz

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Lecture 12 – Revision Quiz 
 
 
1. The World Trade Organisation (WTO) evolved from the General Agreement on Tariffs and Trade (GATT) 
in the 1990s to provide a more effective policing and enforcement of the global trading system. 
 
True False 
 
2. The most recent Doha Round of negotiations has concluded successfully. 
 
True False 
 
3. NAFTA is New Zealand and Australia Free Trade Agreement. 
 
True False 
 
4. CER is a free trade agreement between Australia and New Zealand. 
 
True False 
 
5. From a business perspective, one problem with regional economic integration is that: 
 
A. firms outside the trading bloc may be effectively be locked out of the single market. 
 
B. there would be increasing concerns about industrial sabotage. 
 
C. there would be concerns over national sovereignty. 
 
D. there is much uncertainty regarding the euro currency. 
 
 
6. Regional economic integration presents a number of threats to international business. A significant threat is: 
 
A. an increasingly competitive business environment. 
 
B. increasing operating costs. 
 
C. greater opportunity to exploit differences in regulations. 
 
D. uniformity in operating structures. 
 
 
7. The economic case for integration is essentially the economic arguments for: 
 
A. bilateral and multilateral country agreements. 
 
B. linking neighbouring economies and dependency on each other. 
 
C. free trade and investment. 
 
D. promoting entrepreneurship. 
 
 
8. Progress in the current Doha Round of negotiations has been restricted by: 
 
A. lack of global growth, and global recession. 
 
B. countries’ cuts to agricultural protection, and emerging market economies opening up markets to 
industrial goods and services. 
 
C. surges in the number of technology-intensive industries, and lack of legal regulations. 
 
D. climate change, driving inequalities among market economies. 
 
 
9. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) were 
successful in _________ tariff barriers on manufactured goods and commodities, but there has been 
_________ progress on agricultural trade and FDI liberalisation. 
 
A. raising; no 
 
B. stopping; significant 
 
C. enabling; disappointing 
 
D. maintaining, surprising 
 
 
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10. Which of the following reflects the highest level of integration? 
 
A. Regional integration 
 
B. Customs union 
 
C. Common market 
 
D. Political union 
 
 
11. Which type of agreement is the most popular form of regional economic integration, accounting for almost 
90 per cent of regional agreements? 
 
A. Customs union agreement 
 
B. Free-trade agreement 
 
C. Common market agreement 
 
D. Political union agreement 
 
 
12. The most important reasons for the Brexit include concerns about: 
 
A. threats of terrorism. 
 
B. loss of national sovereignty and increasing immigration. 
 
C. ongoing global uncertainty caused by market failure and climate change. 
 
D. fear of cultural uniformity. 
 
 
13. Trade diversion is the phenomenon that occurs when: 
 
A. governments alter policies in order to provide non-financial assistance to struggling industries. 
 
B. emerging industries are provided with subsidies to allow them to compete with established industries. 
 
C. trade is created that would not otherwise have existed. 
 
D. low-cost external suppliers are replaced by high-cost suppliers inside the free trade area. 
 
 
14. From an economics perspective, ‘trade creation’ is considered _________ while ‘trade diversion’ is 
considered _________. 
 
A. positive; positive 
 
B. negative; negative 
 
C. positive; negative 
 
D. negative, positive 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Answers 
 
 
1. The World Trade Organisation (WTO) evolved from the General Agreement on Tariffs and Trade (GATT) 
in the 1990s to provide a more effective policing and enforcement of the global trading system. 
 
True 
 
2. The most recent Doha Round of negotiations has concluded successfully. 
 
False 
 
3. NAFTA is New Zealand and Australia Free Trade Agreement. 
 
False 
 
4. CER is a free trade agreement between Australia and New Zealand. 
 
True 
 
5. From a business perspective, one problem with regional economic integration is that: 
 
A. firms outside the trading bloc may be effectively be locked out of the single market. 
 
B. there would be increasing concerns about industrial sabotage. 
 
C. there would be concerns over national sovereignty. 
 
D. there is much uncertainty regarding the euro currency. 
 
 
6. Regional economic integration presents a number of threats to international business. A significant threat is: 
 
A. an increasingly competitive business environment. 
 
B. increasing operating costs. 
 
C. greater opportunity to exploit differences in regulations. 
 
D. uniformity in operating structures. 
 
 
7. The economic case for integration is essentially the economic arguments for: 
 
A. bilateral and multilateral country agreements. 
 
B. linking neighbouring economies and dependency on each other. 
 
C. free trade and investment. 
 
D. promoting entrepreneurship. 
 
 
8. Progress in the current Doha Round of negotiations has been restricted by: 
 
A. lack of global growth, and global recession. 
 
B. countries’ cuts to agricultural protection, and emerging market economies opening up markets to 
industrial goods and services. 
 
C. surges in the number of technology-intensive industries, and lack of legal regulations. 
 
D. climate change, driving inequalities among market economies. 
 
 
9. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) were 
successful in _________ tariff barriers on manufactured goods and commodities, but there has been 
_________ progress on agricultural trade and FDI liberalisation. 
 
A. raising; no 
 
B. stopping; significant 
 
C. enabling; disappointing 
 
D. maintaining, surprising 
 
 
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10. Which of the following reflects the highest level of integration? 
 
A. Regional integration 
 
B. Customs union 
 
C. Common market 
 
D. Political union 
 
 
11. Which type of agreement is the most popular form of regional economic integration, accounting for almost 
90 per cent of regional agreements? 
 
A. Customs union agreement 
 
B. Free-trade agreement 
 
C. Common market agreement 
 
D. Political union agreement 
 
 
12. The most important reasons for the Brexit include concerns about: 
 
A. threats of terrorism. 
 
B. loss of national sovereignty and increasing immigration. 
 
C. ongoing global uncertainty caused by market failure and climate change. 
 
D. fear of cultural uniformity. 
 
 
13. Trade diversion is the phenomenon that occurs when: 
 
A. governments alter policies in order to provide non-financial assistance to struggling industries. 
 
B. emerging industries are provided with subsidies to allow them to compete with established industries. 
 
C. trade is created that would not otherwise have existed. 
 
D. low-cost external suppliers are replaced by high-cost suppliers inside the free trade area. 
 
 
14. From an economics perspective, ‘trade creation’ is considered _________ while ‘trade diversion’ is 
considered _________. 
 
A. positive; positive 
 
B. negative; negative 
 
C. positive; negative 
 
D. negative, positive 
 
 
 
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