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ARIZONA STATE UNIVERSITY POS 486 | POS486 MIDTERM

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Question 1 0 out of 2.5 points Which of the following is NOT a policy that trade liberalization would seek to eliminate? Selected Answer: 4. domestic content requirements Correct Answer: 2. trade agreements ...

Question 1 0 out of 2.5 points Which of the following is NOT a policy that trade liberalization would seek to eliminate? Selected Answer: 4. domestic content requirements Correct Answer: 2. trade agreements Response Feedback: Refer to Chapter 1, pp. 22-24, and Assignment 1  Question 2 2.5 out of 2.5 points Which of the following does NOT describe the WTO? Selected Answer: 2. was drafted in Havana, Cuba in 1948 Correct Answer: 2. was drafted in Havana, Cuba in 1948 Response Feedback: The questions asks which is NOT correct. We know that a trade 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 Answer: 1. agreement by consensus Correct Answer: 1. agreement by consensus Response Feedback: See Chapter 2/Lecture 2 on decisionmaking in WTO, intergovernmental bargaining, multiyear rounds and difficulty getting consensus.  Question 4 2.5 out of 2.5 points The majority of regional trade agreements Selected Answer: 4. are Free Trade Areas Correct Answer: 4. are Free Trade Areas Response Feedback: See Chapter 2. For those of us who are visual learners, Oatley has provided 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 Answer: 2. governments cannot be certain that other governments will comply with the trade agreements they conclude Correct Answer: 2. governments cannot be certain that other governments will comply with the trade agreements they conclude Response Feedback: Refer to pp. 58-59  Question 6 2.5 out of 2.5 points If more trade is created than diverted, a regional trade agreement (RTA) Selected Answer: 2. has liberalized trade Correct Answer: 2. has liberalized trade Response Feedback: Refer to p. 40

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