1 David Ricardo (1817) developed the theory of:
Competitive advantage
Comparative advantage
Absolute advantage
First-mover advantages
2 Porter’s diamond theory focuses on all but which one of the following?
Factor conditions
Location advantages
Firm strategy and structure
Government policies
3 Those in favour of free trade argue that:
All countries benefit from the lowering of tariff barriers.
Domestic employment is a priority for trade policies.
National strategic concerns should dominate trade policies.
Consumers prefer locally produced goods.
4 All but which one of the following are tools of government trade policy?
Tariffs
Non-tariff barriers
Multilateral agreements
Import quotas
5 In what ways are government subsidies protectionist?
They keep out imports
They help domestic producers
They give domestic producers an advantage in global markets
They help create employment
6 Which of the following is not among the GATT principles?
Most favoured nation
Reciprocity in tariff reduction
Principle of national treatment
Principle of safeguarding national interests
7 What is the aim of the WTO’s dispute resolution process?
To punish countries which trade unfairly
To impose anti-dumping penalties
To resolve trade disputes through impartial panels
To resolve trade disputes through judicial procedure
8 What is the main reason for the collapse of the Doha round of multilateral negotiations?
Unwillingness of the US to open markets to products from developing countries
Differing perspectives of developed and developing countries
Disagreement over labour and environmental standards
The activities of anti-globalization protesters
9 The G8 is made up of:
China, USA, France , UK, Germany, Italy, Russia and Japan.
EU, Asean Group, NAFTA, Russia, China, Japan and Canada.
UK, USA, Russia, Germany, France, Italy, Canada, Japan.
Japan, China, Italy, France, Germany, Russia, USA, and UK.
10 Why have bilateral agreements proliferated in recent years?
Because they benefit countries more that multilateral agreements
Because they can be negotiated more quickly than multilateral agreements
Because they are preferred by MNEs
Because countries tend to be of equal bargaining power
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