International Sports Marketing Quiz 3

World Trade Organization (WTO)

A series of agreements designed to be an actual institution charged with the mission of promoting free and fair trade.

Common Markets

Allows for the creation of economically integrated markets between countries by removing trade barriers, allowing free flow of labor and capital between member countries.

General Agreement on Tariffs and Trade (GATT)

Credited with substantially expanding global trade, primarily through the reduction of tariffs.

WTO

Dumping occurs when a company exports the foreign market at a price that is either lower than the domestic prices in the country or less than the cost of production. ______ has/have focused its attention on preventing this.

False

Generally, global businesses have not benefited from regional trade agreements.

True

One of GATT's key provisions was the most-favored-nation clause (MFN). It required that once a benefit, usually a tariff reduction, was agreed on between two or more countries, it was automatically extended to all other member countries.

False

The GATT replaced the WTO

False

The North American Free Trade Agreement (NAFTA) is an example of a Common Market.

Puerto Rico

The goal of NAFTA has been to encourage trade between specific countries. Which of the follow is NOT one of those countries?

True

The goal of WTO agreements is to help producers of goods and services, exporters, and importers conduct business.

Serve as a negotiation forum for trade-related matters

What is the primary purpose of the World Trade Organization?

Economic Union

When countries enter into an agreement to remove barriers to trade and adopt common economic policies, such as currency.

European Union

Which of the following is the most integrated form of economic cooperation?

This may cause more developed countries to lose GDP

Which of these is NOT a "pro" of creating regional agreements?

-Sudden shifts in employment may tax the resources of member countries -Nations may give up more of their political and economic rights -Less efficient trade, only with member countries

Which of these is a "con" of creating regional agreements?