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The goal of the Most Favored Nation (MFN) status in trade agreements is to:
A) Give preferential treatment to certain countries
B) Promote equal trade benefits among all trading partners
C) Restrict trade with specific countries
D) None of the above
Which trade policy promotes the development of domestic industries by reducing dependence on imports?
A) Export-led growth
B) Import substitution policy
C) Protectionism
D) Dumping
What is the purpose of a voluntary export restraint (VER)?
A) To encourage exports from a specific country
B) To limit the quantity of goods exported to a specific country
C) To impose tariffs on imports
D) None of the above
The principle of “national treatment” in trade agreements means that:
A) Foreign goods are treated more favorably than domestic goods
B) Domestic and foreign goods are treated equally
C) Trade barriers are imposed on foreign goods
D) None of the above
Which trade theory suggests that firms can gain a competitive advantage through economies of scale and first-mover advantages?
A) Absolute Advantage
B) Comparative Advantage
C) New Trade Theory
D) Factor Proportions Theory
The concept of “dumping” is often associated with:
A) Export subsidies
B) Free trade agreements
C) Fair trade practices
D) None of the above
Which organization is responsible for setting international trade rules and resolving disputes among member countries?
A) World Bank
B) International Monetary Fund (IMF)
C) World Trade Organization (WTO)
D) United Nations (UN)
The “terms of trade” refer to:
A) The exchange rate between two currencies
B) The balance of trade between two countries
C) The ratio of export prices to import prices
D) None of the above
Which trade policy seeks to reduce reliance on foreign goods by encouraging domestic production?
A) Export-led growth
B) Import substitution policy
C) Protectionism
D) Dumping
The concept of “reciprocity” in trade negotiations refers to:
A) Bilateral concessions made by trading partners
B) Unilateral trade policies adopted by countries
C) Preferential treatment for certain industries
D) None of the above
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