INTERNATIONAL TRADE Flashcards

Question

AIMS OF THE WTO | 4. promoting fair competition

Answer 1

rules against dumping and intellectual property theft are aimed at increasing fair competition generally the creation of a system of trade rules promotes fair play by establishing some fundamental guidelines for most trade

Answer 2

nearly 2/3 of members are dev countries these countries are granted special trade concessions because it is assumed that their industries need time and space to grow to a level of direct global competition

Answer 3

1. promotes peace 2. place to handle disputes 3. based on rules rather than power 4. cuts the cost of living 5. greater consumer and variety 6. trade boosts income 7. trade increases economic growth 8. WTO system encourages efficiency/simplicity 9. shield country from narrow interests 10. same rules create good incentives for better government

Answer 4

by increasing trade relationships between countries WTO help reduce conflict 'sales people rarely fight their customers' 1930s Europe competed to raise barriers, which contributed to WW1 post WW1 Europe has grown increasingly integrated by trade and its peace

Answer 5

providing a dispute process with a schedule of negotiation as part of the early stages WTO encourages compromise

Answer 6

WTO often judges rich countries to be violators of trade policy rule based system helps protect smaller, poorer trade partners

Answer 7

when countries produce based on efficiencies and comparative advantage the cost of food, clothes and other necessities are cheaper WTO notes that rich countries primarily the EU and the US sub their farmers with 1 billion dollars a day

Answer 8

trade gives consumers worldwide access to goods meaning any consumer can shop according to their preferences more luxury goods are available as well as a variety of cheaper consumer goods

Answer 9

1929 uruguay round increased Y from $109-510 billion income can be used by gov to improve services and infrastructure however producers protest when inefficient industries face competition

Answer 10

increase in employment depends on the countries transitional policies

Answer 11

certainty about trade rules transparency about the rules and predictability about the trading environment all encourage trade and efficiency

Answer 12

when asked to enact forms of protectionism national gov resist as they want to be seen as playing by international rules govs are better off to ignore special interest groups

Answer 13

short term special interest lobbying and corruption are more difficult to enact when everyone knows the rules (transparency) and the gov is pledged to support them

Answer 14

1. favour rich countries 2. trade between rich countries 3. poor countries can't afford trade representatives 4. rich countries get richer faster 5. uruguay round has not addressed tariff escalation 6. agricultural subsides in rich countries have not been reduced 7. the protection of intellectual property rights 8. bureaucratic barriers 9. commercial interests in mind

Answer 15

despite the claims to equalize trade environment these countries bring large groups of trade negotiators, far more than smaller countries many agreements are made w/o consultation of smaller countries G20 formed by Brazil and India to rep dev countries

Answer 16

negating the claim that trade benefits everyone

Answer 17

no representation in trade negotiations

Answer 18

oxfam international 'with only 14% of the world's population, high income countries account for 75% of global GDP' which is approximately the same share as in 1990'

Answer 19

developed countries have kept tariffs on raw materials and primary goods imported while maintaining much higher tariffs on the semi-processed and higher value goods made from the raw materials = keeps low cost competition from LDCs in the semi-processed and higher value industries prevents LDCs from diversifying their production increasing the risk of overspecialization

Answer 20

despite pledges by countries signing up to the uruguay round these subs depress world prices and reduce production in developing markets that would otherwise export to the developed world

Answer 21

keeps innovation form spreading quickly to dev countries

Answer 22

as tariffs are dropped by successive rounds of trade agreements rich countries appear to be resorting to bureaucratic barriers e.g. product standards to keep goods out

Answer 23

WTO agreements ignore cases of worker exploitation, rights and issues WTO does little to encourage environmental protection the promotion of trade empowers MNCs to campaign for relaxed environmental protection and worker standards

Answer 24

poor countries grow richer when more open to trade, as recent successes in India and China have helped to demonstrate

Answer 25

not true, since poor countries tend to have higher av tariffs than rich ones

Answer 26

if subs were removed, food prices will rise these increases could hurt nutrition levels in some poor countries that rely on food imports

Brainscape's Knowledge GenomeTM

INTERNATIONAL TRADE Flashcards

Brainscape's Knowledge Genome^TM