Chapter 7 MCQs

D

A current trend in world trade is the rise of which group of countries? a. The triad countries b. African countries c. Developed countries d. Developing countries

A

A free trade area aims to do which of the following? A) Remove trade barriers among member states B) Foster economic integration C) Impose common trade rules for internal and external trade D) Foster political integration

B

All but which one of the following is a non-tariff barrier to trade? A) Product safety requirements B) Import quotas C) Local content requirements D) Banning foods containing genetically-modified organisms (GMOs)

C

All but which one of the following is a protectionist trade policy? A) Subsidizing home producers B) Imposing tariffs on imports C) Allowing duty-free goods to be imported D) Imposing local-content rules in domestic manufacturing

B

Countries that are resource rich but have to import manufactured goods are a feature of which one of the following regions? a. South Asia b. Africa c. North America d. Europe

C

Product life cycle theory helps to explain which one of the following phenomena? A) The continued status of the US as a manufacturing superpower B) The expansion of markets in developing countries C) The shift in manufacturing of consumer goods to low-cost countries D) The dominance of the US in launching new products

C

The Doha round of multilateral trade negotiations accomplished little except which one of the following? A) An agreement to reduce US farm subsidies B) An agreement to reduce tariffs on agricultural products exported from poor countries C) An agreement to reduce red tape for goods crossing national borders D) An agreement to improve labour standards

B

The TRIPS agreement is best described as focusing on which of the following? A) Intellectual property (IP) in pharmaceutical products B) A framework for developing countries to strengthen IP laws C) A set of rules for allowing poor countries to use medicines under patent D) A regime for licensing pharmaceutical products for use in poor countries

D

The theory of comparative advantage stresses which of the following? A) Countries should export products which they can produce more cheaply than other countries B) Countries should specialize in industries in which they can produce goods more efficiently than any other country C) Countries should aim to be self-sufficient in all industries D) Countries should specialize in industries in which they hold the greatest advantage in comparison with other countries

B

Which of the following groups of countries have historically been dominant in world trade? a. European countries b. The triad countries c. North American countries d. Asian countries

A

Which one of the following best describes the contribution of Porter's theory of competitive advantage? A) It takes in numerous dimensions of a nation's competitive environment B) It lays stress on the role of government C) It explains why some countries' companies are more efficient than others D) It stresses the importance of home demand in a national environment

C

Which one of the following countries has benefited the most from the import of intermediate goods? a. The US b. The UK c. China d. Germany

D

Which one of the following countries has promoted industrialization through policies of import substitution? a. China b. Singapore c. Japan d. India

B

Which one of the following describes first mover advantages? A) A company should launch a new product in all markets simultaneously B) A company that is first in a market can establish a lead such that others are unable to catch up C) A company that is first in a market is likely to be caught by more nimble competitors D) A company that falls behind in a market can never recover

C

Which one of the following producer countries has suffered economically from US cotton subsidy programmes? a. China b. Australia c. Mali d. India