81) Why did telecommunications companies welcome the telecommunication deal brokered by
WTO in 1997?
A) It enhanced protection of patents, copyrights, and trademarks (intellectual property).
B) It helped resolve deadlock situations arising out of the unwillingness to lower trade barriers
between neighboring countries.
C) It offered a greater ability for companies to offer a global, seamless service for all their
corporate needs.
D) It liberalized trade policies by eliminating tariffs, subsidies, import quotas, antidumping duties,
and local content requirements.
E) It reduced the export of pirated imitations of patented innovations pioneered in a different
country.
82) The WTO was encouraged to extend its reach to encompass regulations governing foreign
direct investment, something GATT had never done. Two of the first industries targeted for this
reform were
A) global telecommunication and financial services industries.
B) scientific research and defense sector.
C) pharmaceuticals and heavy metal industry.
D) pharmaceuticals and biotechnology.
E) scientific research and agriculture.
83) SilverFinn makes high-end jewelry for women. This jewelry is manufactured and patented in
Italy. Manufacturers in Argentina create counterfeit SilverFinn jewelry and sell it in local markets
at nearly similar prices to the original SilverFinn jewelry sold in other countries. This lack of
intellectual property protection is like to result in
A) expansion of the world market for SilverFinn products.
B) reduction in the export opportunities for SilverFinn jewelry in Argentina.
C) reduction in import of all Argentinian goods.
D) increase in the prices of jewelry produced by SilverFinn.
E) reduction in export opportunities from Argentina to other countries.
84) The WTO rules say that a country can impose antidumping duties on
A) violators of intellectual property laws.
B) farmers who receive subsidies for more than two years.
C) foreign governments that replicate products made by a foreign producer.
D) foreign goods being sold cheaper than at home.
E) nations that don’t cooperate with trade agreements.
85) A bound tariff rate is
A) the lowest rate that can be charged.
B) equal to the spot exchange rate.
C) based on the forward exchange rate.
D) the average tariff rate a country sets within a year.
E) the highest rate that can be charged.
86) President Trump has voiced his opposition to many free trade deals. Because of this, some say
that he maintains a(n) ________ view on trade.
A) comparative advantage
B) expansionist
C) absolute advantage
D) open economy
E) mercantilist
87) A loophole in antidumping laws that is being exploited by many countries to pursue
protectionism is the
A) slackness of enforcement agencies.
B) WTO’s noncommittal approach to antidumping laws.
C) bilateral VERs which subvert antidumping laws.
D) vague definition of what constitutes “dumping.”
E) lack of consensus among member nations.
88) The ________ does not reinforce that the best interests of international business are served by
a free trade stance.
A) increasing integration of the world economy
B) internationalization of production
C) trend toward greater protectionism
D) implementation of open markets
E) dispersion of production activities
89) What is the result of the threat of antidumping action?
A) It helps the firm raise capital in the primary market.
B) It limits the ability of a firm to raise prices in response to high demand.
C) It enhances the firm’s ability to disperse its productive activities in an efficient manner.
D) It limits the ability of a firm to use aggressive pricing to gain market share in a country.
E) It enhances a firm’s competitive advantage to indigenous competitors in that country.
90) Define a tariff and describe specific tariffs and ad valorem tariffs. Explain how tariffs play a
role in the U.S. government.
91) Discuss subsidies and detail how they can help domestic producers.
92) What is a voluntary export restraint? Why do exporting countries agree to VERs? Explain with
an example.
93) Explain why a government would implement a local content requirement and discuss the role
of the Buy America Act in the United States.
94) What are the political arguments for government intervention into international trade? Give
examples.
95) One form of political argument concerning free trade is based on protecting consumers.
Provide examples of several real-world situations that demonstrate this argument.
96) What is the infant industry argument? What are its implications for the world economy? What
are the criticisms of this argument?
97) Briefly describe the two components of strategic trade policy.
98) Discuss Krugman’s views on strategic trade policy.
99) Give a brief description of the origin, functions, and successes of GATT from 1947 to 1979,
before protectionist trends gained momentum across the world.
100) Explain why there was greater pressure under GATT for protectionism around the world
during the 1980s and 1990s.
101) Explain the organizational structure and the key functions of the WTO.
102) Briefly discuss the four issues at the forefront of the current agenda of the WTO.
103) Review the two major events that occurred in 2016 that made some believe that not all
countries are interested in embracing free trade and lowering trade barriers between nations.
104) How does the increasing integration of the world economy and internationalization of
production affect the selection of a trade policy?