Theme 4 Test 1

Trading blocs are when the governments of a group of countries agree to trade together freely i.e. normally with no trade barriers.

• True

• False

Members agree to either reduce or eliminate trade barriers for a select number of goods or services, resulting in partial trade liberalisation. This is ......

• Preferential trade areas

• Free trade areas

• Customs unions

• Economic unions

Economic Union comprises of the features of both a customs union and a common market, including common economic policies.

• True

• False

Members agree to the removal of trade barriers as well as the freedom of movement of factors of production within the bloc.

• Customs unions

• Common markets

• Free trade areas

• Preferential trade areas

Often also involves the agreement of common economic policies is a feature of .....

• Free Trade area

• Preferential Trade Area

• Customs Union

• Common Market

Example: In 2005, the United States limited the imports of Chinese textiles to 7.5% a year.

• Quota
• Tariff
• Embargo

Example: In 1996, the US taxed imported grapes, ceramic tableware, and motorcycles.

• Quota
• Tariff
• Embargo

Example: In 2010, China announced that it would impose an import tax on American poultry of up 105.4 percent.

• Quota
• Tariff
• Embargo

Example: In 2012, the United States Commerce Department announced that it would impose a tax ranging from 2.9% to 4.7% on Chinese made solar panels.

• Quota
• Tariff
• Embargo

Members agree to either reduce or eliminate trade barriers for all goods and services, resulting in trade liberalisation is a feature of .....

• Free Trade Area

• Economic Union

• Customs Union

• Common Markets