W5P1 (lecture): The Evolution of Financial Institutions Flashcards
What is a unilateral trade agreement?
A) An agreement between two countries to reduce tariffs
B) A one-sided, non-reciprocal agreement that helps developing countries
C) A trade agreement that involves three or more countries
D) An agreement that benefits only developed countries
B) A one-sided, non-reciprocal agreement that helps developing countries
What is a primary goal of a unilateral trade agreement?
A) To create a balanced trade relationship between two countries
B) To enhance economic development in developing countries
C) To impose tariffs on imports
D) To regulate trade among several nations
B) To enhance economic development in developing countries
Which of the following best describes a bilateral trade agreement?
A) A trade agreement involving multiple countries
B) A one-sided agreement benefiting only one country
C) A mutually beneficial agreement between two countries
D) An agreement that imposes tariffs on imports
C) A mutually beneficial agreement between two countries
Which statement is true about bilateral trade agreements?
A) They are designed to benefit only developing nations.
B) They do not reduce trade barriers.
C) The agreement is between two or more countries.
D) They aim to foster trade between two specific nations.
D) They aim to foster trade between two specific nations.
What is one potential benefit of bilateral trade agreements?
A) They can lead to trade imbalances.
B) They foster cooperation and mutual benefit between two nations.
C) They make trade more complicated for participating countries.
D) They eliminate the need for tariffs entirely.
B) They foster cooperation and mutual benefit between two nations.
What distinguishes a multilateral trade agreement from other types of trade agreements?
A) It involves only two countries
B) It includes three or more countries
C) It is focused on reducing tariffs only
D) It is always non-reciprocal
B) It includes three or more countries
Which two of the following are examples of a multilateral trade agreement?
A) USMCA
B) The Generalized System of Preferences
C) The European Union
D) A trade agreement between the US and Canada
A) USMCA
C) The European Union
What is FALSE about multilateral trade agreements?
A) It is exclusively designed to benefit developed countries
B) It is referred to as a regional trade agreement
C) It works similarly to a free trade agreement
D) It involves three or more countries
A) It is exclusively designed to benefit developed countries
What is a common feature of multilateral trade agreements like the USMCA and the European Union?
A) They only involve developed nations.
B) They provide benefits exclusively to one country.
C) They aim to reduce trade barriers among member countries.
D) They are unilateral in nature.
C) They aim to reduce trade barriers among member countries.
What motivated the establishment of international trade measures after World War II?
A) The desire for free trade among all nations
B) The fear of economic and trade chaos similar to the post-World War I period and the Great Depression
C) The need for colonial expansion
D) The belief in unrestricted capitalism
B) The fear of economic and trade chaos similar to the post-World War I period and the Great Depression
Which policy did the United States adopt in the post-1919/World War 1 world?
A) Global cooperation
B) America First policy
C) Open trade policy
D) Internationalism
B) America First policy
What was one of the consequences of the “America First” policy?
A) Decreased tariffs on imports
B) Increased tariffs on goods entering the United States
C) A stronger focus on international alliances
D) Improved relations with European nations
B) Increased tariffs on goods entering the United States
During the 1920s and 1930s, the rise of nationalism in the U.S. was largely driven by:
A) The desire for global trade
B) Economic stability and prosperity
C) Fear and uncertainty regarding European politics
D) The pursuit of new colonies
C) Fear and uncertainty regarding European politics
What was a significant impact of the tariffs imposed on foreign goods in the U.S.?
A) They made foreign goods cheaper for consumers.
B) They eliminated the need for domestic production.
C) They increased the cost of foreign goods for American consumers.
D) They encouraged more foreign investment in the U.S.
C) They increased the cost of foreign goods for American consumers.
What was the primary goal of the Smoot-Hawley Tariff Act when it was introduced in 1930?
A) To reduce tariffs and encourage free trade
B) To protect American industry by imposing higher tariffs on foreign goods
C) To promote international trade cooperation
D) To eliminate all tariffs on imported goods
B) To protect American industry by imposing higher tariffs on foreign goods