Lessons Learned 2

According to this __________ perspective, international trade is unfair. The international system is inherently biased against developing countries.

...

The debate in this video http://www.youtube.com/watch?v=FGwPiKxmpDI is about __________________.

...

The __________________ theorem identifies the factors of production which determine a country's opportunity cost advantage.

???

_________ assumed that countries would engage in trade ONLY if they did not have an absolute advantage in what they could produce.

Adam Smith

____________________ argued that what matters in determining whether or not a country would engage in trade is its opportunity cost advantage in relationship to the different things that it can produce.

David Ricardo

Based on this video https://www.youtube.com/watch?v=38hvvAzgXZY, David Ricardo was "the first person to formalize a model on international trade."

False

The GATT was one of the organizations formed at the Bretton Woods Conference.

False

The IMF, World Bank, and WTO are all specialized agencies of the United Nations.

False

Trade generates a good deal of good will between the Northern and Southern nations.

False

GATT was the initials for ______________________.

General Agreements in Tariffs and Trade

From this video https://www.youtube.com/watch?v=38hvvAzgXZY, comparative advantage can be defined as a country that has an ______________ cost advantage of producing something over another country.

NOT absolute *opportunity

Poorer developing countries which often produce and export primary commodities tend to face unfair _____________________ in relationship to rich countries that produce manufactured (capital) goods.

NOT exchange *bias?

In 1930 the U.S. Congress passed the act, which increased U.S. tariffs to their highest level in the twentieth century.

Smoot-Hawley Tariff

According to the ______________ theorem, there are winners and losers with international trade.

Stolper-Samuelson

Based on information from the video https://www.youtube.com/watch?v=cijnV8P5UHE, it is correct to say that the Uruguay round "gave birth to" the World Trade Organization.

True

Based on this video https://www.youtube.com/watch?v=38hvvAzgXZY , Adam Smith assumed that countries would specialize in areas in which they had an absolute advantage.

True

During the Great Depression of the 1930s, protectionism spiraled upward while international trade decreased significantly due to the Smoot-Hawley tariff act in the United States.

True

In 1947 the GATT was instituted based on the two basic principles of reciprocity and nondiscrimination, commonly referred to as the most favored nation (MFN) principle.

True

National treatment and the Most Favor Nation principle are both part of the GATT/WTO's nondiscrimination principle.

True

The WTO took over the GATT's role in 1995.

True

Unlike the GATT, the WTO has enforcement power through its Dispute Settlement Panel, which is empowered to interpret WTO agreements and authorize sanctions on member-states that violate trade rules.

True

Drawing on this video https://www.youtube.com/watch?v=cijnV8P5UHE , you should be able to answer this question: What is GATT? GATT was an ___________________ among 23 countries known as the contracting party.

agreement

The idea that relative (based on opportunity cost) mattered more than absolute advantage led David Ricardo to develop the trade theory of ___________________.

comparative advantage

Based on the discussion in this video https://www.youtube.com/watch?v=Ekm9Bayou8Y : WTO governance and decision-making is not ____________ but instead it is dominated by big powerful countries.

democratic

Dependency theory articulates the argument that the core ____________the periphery.

exploits

According to this ___________________ perspective, free trade is not always a good thing. Sometimes the state needs to protect domestic industries and promote exports through strategic policies.

mercantilist

David Ricardo claimed that free trade resulted in a __________ outcome for those countries engaged in it.

positive-sum

International are principles, norms, rules, and decision-making procedures around which there is a convergence of actors' expectations in an area of international relations.

regimes

Based on this video https://www.youtube.com/watch?v=cijnV8P5UHE, you should have learned that GATT's goals were to remove ______________ and tariffs.

trade barriers

As with GATT, the World Trade Organization (WTO) multilateral trade negotiations on tariffs and trade takes place in what is referred to as negotiating ____________.

trade rounds