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

Technology transfer involves sharing intellectual property, technical expertise, patents, or manufacturing know-how with foreign partners as part of trade or investment arrangements.

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

The infant industry argument justifies temporary trade protection to allow newly established industries to achieve economies of scale and compete effectively in global markets.

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

Re-imports are goods that were originally exported from a country and then returned, sometimes after processing abroad, and may qualify for reduced duties under duty drawback programs.

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

Currency manipulation involves a government or central bank deliberately devaluing its currency to make exports cheaper and imports more expensive, unfairly boosting trade competitiveness.

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

Rules of origin determine the economic nationality of a product, establishing which country's trade agreements, tariffs, and quotas apply to it.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB International Trade & Policy 3