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True / False
1. The Uruguay round of tariff negotiations was the first major multilateral trade negotiating session since World War
II.
a. True
b. False
2. Each nation has the power to regulate imports into the country and the primary mode of control is to regulate import
competition.
a. True
b. False
3. Nontariff barriers are the least obstructive obstacles to importation as compared to tariffs.
a. True
b. False
4. Quotas serve to increase the amount of imports of a product.
a. True
b. False
5. An embargo is a country's economic policy response to a trading partner's obstacles to imports.
a. True
b. False
6. China's manipulation of the yuan to remain undervalued compared to the U.S. Dollar is a price mechanism to
enhance the value to Chinese goods.
a. True
b. False
7. When a nation's import regulations or procedures are transparent, it is difficult for foreign firms to gain entrance to
its markets.
a. True
b. False
8. The General Agreement on Tariffs and Trade is today the most important instrument for regulating international
trade.
a. True
b. False
9. A "free trade" nation has no barriers to trade.
a. True
b. False
10. An embargo only applies to imports from Cuba, Sudan, North Korea, and Egypt.
a. True
b. False
11. When import regulations are readily available to importers and exporters, they are considered to be transparent.
a. True
b. False
12. Although the 1947 GATT was never ratified by the U.S. Congress, the United Nations assembly voted that GATT
would be imposed on all of the nation members.
a. True
b. False
14. In a tariff concession, one country promises not to levy a tariff on a given product at a level higher than agreed upon.
a. True
b. False
15. In the dispute regarding the European Union's importation of Latin American bananas, the dispute panel found no
disparity in tariffs on the European Union's part.
a. True
b. False
16. Tariff concessions under GATT are recorded in tariff schedules, which are detailed product-by-product listings of all
tariff obligations for that nation.
a. True
b. False
17. GATT envisages a process of tariff bargaining, and this is accomplished through a hit-and-miss process of tariff
reductions and increases called "rounds."
a. True
b. False
18. Normal trade relations provides that a nation cannot negotiate a preferential trade agreement with another nation.
a. True
b. False
19. Under normal trade relations, when a nation extends some privilege or right to one of its trading partners, that
privilege automatically becomes applicable to all other trading partners.
a. True
b. False
20. Under the "national treatment" provisions of GATT, imported products may be regulated and taxed differently than
domestic goods after they pass the border and enter a nation's stream of commerce.
a. True
b. False
21. Under GATT, charges may be imposed upon the movement of imported goods, such as port fees and inspection
fees.
a. True
b. False
22. Tariffication is the process in which quotes, licensing schemes, and other nontariff barriers to trade are "converted"
to tariffs.
a. True
b. False
23. Each nation has the right to impose import schemes and customs procedures as a means to protect its citizens public
health, safety, and morals.
a. True
b. False
24. The Trade Agreements Act of 1979 contains a provision allowing standard-setting by the U.S. government on
private U.S. firms.
a. True
b. False
25. One of the primary objectives of GATT is the elimination of all quotas and quantitative restraints.
a. True
b. False
26. Due to GATT's prohibition of quotas, a nation may not impose quotas to safeguard its external financial position and
its balance of payments.
a. True
b. False
27. For the most part, trade in textiles and services are not regulated by the GATT system.
a. True
b. False
28. The GATT dispute panel found the continuing use of quotas on beef in Korea was justified.
a. True
b. False
29. WTO DSU reports carry precedential value for future panels by providing definitive interpretations of GATT
provisions.
a. True
b. False
30. While WTO reports carry no weight as precedent, subsequent panels often consider them, and they can create
legitimate expectations as to the interpretation of the treaty by WTO members.
a. True
b. False
31. In order to convene a WTO panel, the complaining country must prove it has a "legal interest" in the case.
a. True
b. False
32. The GATT 1994 established rules for regulating trade in goods and services and creation of the WTO.
a. True
b. False
33. An example of the GATT/WTO dispute settlement mechanism, Apple can file a complaint against Niger's
government non tariff barrier to limit the importation of iPads to the WTO's Dispute Settlement Body.
a. True
b. False
34. Under the MFN rates the United States can grant lower tariff rates to a less developed country in order to stimulate
economic growth?
a. True
b. False
35. The principle of nondiscrimination is central to the GATT and is evident in the following areas:
a. Normal trade relations.
b. National treatment.
c. Elimination of quotas and quantitative restrictions.
d. All of the above.
36. Which of the following may not be a reliable criterion for determining whether import and domestic goods are "like
products"?
a. Consumers' tastes and habits.
b. The product's end uses.
c. The product's uniform tariff classification.
d. All of the above
37. A tariff is:
a. An import duty.
b. A tax levied on goods being brought into a country.
c. A ban on trade with a foreign nation.
d. Both A and B.
