ARIZONA STATE UNIVERSITY POS 351 | POS351 MIDTERM • Question 1 Which of the following is NOT a policy that trade liberalization would seek to eliminate? • Question 2 Which of the follow ing does NOT describe the WTO? • Question 3 The WTO relies on • Question 4 The majority of regional trade...
ARIZONA STATE UNIVERSITY
POS 486 | POS486
MIDTERM
Question 1
0 out of 2.5 points
Which of the following is NOT a policy that trade liberalization would seek to
eliminate?
Selected 4.
Answer: domestic content
requirements
Correct 2.
Answer: trade agreements
Response Refer to Chapter 1, pp. 22-24, and
Feedback: Assignment 1
Question 2
2.5 out of 2.5 points
Which of the following does NOT describe the WTO?
Selected 2.
Answer: was drafted in Havana, Cuba
in 1948
Correct 2.
Answer: was drafted in Havana, Cuba
in 1948
Response The questions asks which is NOT correct. We know that a trade
Feedback:
institution was discussed at Bretton Woods but not created. We also
know that the WTO didn't come into creation until 1995, with the
GATT guiding international trade from 1947-1994. We have also
learned that it covers international trade for most countries globally,
that it has a broad mandate, and that it expanded GATT. Therefore,
the correct answer is 2. See Chapter 2/Lecture 2.
Question 3
2.5 out of 2.5 points
The WTO relies on
Selected 1.
Answer: agreement by
consensus
Correct 1.
Answer: agreement by
consensus
, Response See Chapter 2/Lecture 2 on decision-making in WTO, intergovernmental
Feedback: bargaining, multiyear rounds and difficulty getting consensus.
Question 4
2.5 out of 2.5 points
The majority of regional trade agreements
Selected 4.
Answer: are Free Trade
Areas
Correct 4.
Answer: are Free Trade
Areas
Response See Chapter 2. For those of us who are visual learners, Oatley has provided
Feedback: quite a graphic representation on p. 37.
Question 5
2.5 out of 2.5 points
The enforcement problem of trade agreements refers to the fact that
Selected 2.
Answer: governments cannot be certain that other governments will comply
with the trade agreements they conclude
Correct 2.
Answer: governments cannot be certain that other governments will comply
with the trade agreements they conclude
Response Refer to pp.
Feedback: 58-59
Question 6
2.5 out of 2.5 points
If more trade is created than diverted, a regional trade agreement (RTA)
Selected 2.
Answer: has liberalized
trade
Correct 2.
Answer: has liberalized
trade
Response Refer to p.
Feedback: 40
Question 7
2.5 out of 2.5 points
The difference between a FTA and a Customs Union
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