MIB International Trade & Policy 3

Question 1

What is 'transfer of technology' in international trade and investment agreements?

Accepted Answer

Sharing of IP, technical knowledge, and processes with foreign partners or governments

Answer

Moving manufacturing equipment across borders

Answer

Transferring financial assets to offshore accounts

Answer

Importing foreign technology standards

Question 2

The 'infant industry argument' for trade protection contends that:

Accepted Answer

New industries deserve temporary tariff protection until they become internationally competitive

Answer

Young workers need protection from foreign competition

Answer

Small businesses should be exempt from trade regulations

Answer

Developing nations should avoid all trade liberalization

Question 3

Which international trade term describes goods that re-enter a country after being exported for processing or repair?

Accepted Answer

Re-imports

Answer

Drawback goods

Answer

Transit goods

Answer

Entrepôt trade

Question 4

A 'currency manipulation' accusation in international trade typically refers to a country:

Accepted Answer

Artificially devaluing its currency to gain export competitive advantages

Answer

Counterfeiting foreign currencies

Answer

Using multiple exchange rates simultaneously

Answer

Pegging its currency to the US dollar

Question 5

What does 'rules of origin' determine in international trade?

Accepted Answer

The nationality of a product for purposes of applying trade measures

Answer

Where goods must be shipped from

Answer

Which country's laws govern trade contracts

Answer

Country requirements for product labeling

Question 6

The 'Special and Differential Treatment' (SDT) provisions in WTO agreements are designed to:

Accepted Answer

Provide developing countries with greater flexibility and longer implementation periods

Answer

Give large economies more voting power

Answer

Exempt least-developed countries from all WTO rules

Answer

Protect agricultural sectors in all member nations