lesson 3: wto and trading blocs

Question 1

wto was based in ? and established on ?

Answer 1

Based in Geneva, Switzerland
Was established on January 1, 1995

Question 2

is the only global organization dealing with the rules of trade between or among nations

Answer 2

world trade organization

Question 3

All WTO rules are the outcome of negotiations among members

Answer 3

true

Question 4

legal agreement minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations

Answer 4

GATT (general agreement on tariff and trade)

Question 5

The GATT was created to form rules to end or restrict the most costly and undesirable features of the prewar protectionist period, namely quantitative trade barriers such as trade controls and quotas.

Answer 5

true

Question 6

It states that all members shall give equal treatment to the products and services of all other WTO states

Answer 6

WTO’S MOST-FAVORED-NATION (MFN) STATUS

Question 7

• Which resolves conflicts according to trade rules
• Once trade disputes are settled, potential political or military conflict is mitigated

Answer 7

WTO’s DISPUTE SETTELEMENT BODY (DSB)

Question 8

Is a forum for the entire membership to review the trade policies of member countries

Answer 8

TRADE POLICY REVIEW BODY (TPRB)

Question 9

Over ? of WTO members are developing or least-developing countries

Answer 9

75%

Question 10

the philippines became a wto member of the wto on

Answer 10

january 1, 1995

Question 11

One of these complaints was about the countervailing duty imposed by ? on the Philippine exports of desiccated coconut.

Answer 11

brazil

Question 12

a type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and others) are reduced or eliminated among the participating states.

Answer 12

trading blocs

Question 13

types of trading bloc

Answer 13

1. free trade area
2. customs union
3. common market
4. full economic union

Question 14

The members remove all trade barriers among themselves, and they have the same set of external barriers

Answer 14

CUSTOMS UNION

Question 15

The members remove all trade barriers among themselves, but their respective trade barriers to non-member countries are not dictated by their membership

Answer 15

FREE TRADE AREA

Question 16

Member countries permit full freedom of factor flows (migration of labor or capital) among themselves

Answer 16

COMMON MARKET

Question 17

Member countries unify all their economic policies

Answer 17

FULL ECONOMIC UNION

Question 18

• This international institution allows currencies to be exchanged freely and easily between member countries
• It oversees the international monetary system and promotes both the elimination of exchange restrictions relating to trade in goods and services and the stability of exchange rates

Answer 18

INTERNATIONAL MONETARY FUND

Question 19

when was imf established?

Answer 19

It was formally established in December 1945 when the first 29 countries signed its Articles of Agreement