TMQT

If Country A can produce 1 car in 20 hours or 1 computer in 10 hours, and Country B can produce 1 car in 15 hours or 1 computer in 5 hours, which statement is correct?

• Country A has a comparative advantage in producing cars.

• Country B has a comparative advantage in producing cars.

• The opportunity cost of producing a computer is higher in Country A.

• Both countries have equal opportunity costs.

If a country imposes a quota on the import of a specific good, what is a likely consequence?

• Increased domestic production of the good.

• Lower prices for goods in the domestic market.

• Enhanced international cooperation.

• Expansion of consumer choices.

In the context of the Heckscher-Ohlin model, factor-price equalization occurs when:

• Factors of production can freely move between countries.

• Factors of production are immobile between countries.

• There is a disparity in factor endowments between countries.

• The prices of factors of production are unequal.

Which statement is true regarding anti-dumping measures?

• Anti-dumping measures always improve the welfare of the importing country.

• Dumping actions are required for imposing anti-dumping tariffs.

• Anti-dumping measures aim to promote unfair competition.

• Domestic industry suffering from material injury is not a condition for imposing anti-dumping tariffs.

The process of economic integration that involves the coordination of economic policies among member countries, a common currency, and a unified monetary policy is known as:

• Free trade area.

• Customs union.

• Economic union.

• Common market.

What is a primary factor influencing exchange rates in the foreign exchange market?

• Fiscal policy.

• Inflation rates.

• Consumer preferences.

• Technological advancements.

Within the WTO framework, which agreement specifically addresses issues related to intellectual property rights?

• General Agreement on Tariffs and Trade (GATT).

• Agreement on Agriculture.

• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

• Agreement on Subsidies and Countervailing Measures.

BITs are agreements between two countries aimed at promoting and protecting foreign investment. What is a common provision found in BITs?

• Restrictions on foreign investments.

• Expropriation without compensation.

• Nationalization of foreign assets.

• Investor-state dispute settlement mechanisms.

Which of the following is an example of a non-tariff barrier to trade?

• Import quotas.

• Ad valorem tariffs.

• Value-added tax (VAT).

• Specific tariffs.

The strategic trade policy argument suggests that governments should:

• Encourage industries to compete freely in the global market.

• Use subsidies and protectionist measures to create and sustain dominant industries.

• Promote a laissez-faire approach to international trade.

• Advocate for complete market liberalization.