BAIB3004 Week 12

Which of the following is NOT typically considered a service sector?

• Financial services

• Construction

• Automobile manufacturing

• Tourism

The General Agreement on Trade in Services (GATS) is administered by which organisation?

• United Nations

• World Trade Organisation

• International Monetary Fund

• World Bank

Which mode of supply under GATS involves a consumer traveling to another country to consume a service?

• Cross-border supply

• Consumption abroad

• Commercial presence

• Presence of natural persons

Agglomeration effects in services trade refer to:

• The reduction of tariffs on goods

• The benefits firms gain from clustering in specific locations

• The movement of goods across borders

• The elimination of quotas

Which of the following best describes "factor mobility" in the context of services trade?

• The ability of goods to move across borders

• The ability of labour and capital to move across borders

• The ability of services to be stored for future use

• The ability of countries to set tariffs

Increasing returns to scale in services trade means:

• The cost per unit increases as output increases

• The cost per unit decreases as output increases

• There are no changes in cost as output increases

• Services cannot be traded internationally

Which of the following is an example of a bilateral agreement in services trade?

• GATS

• ASEAN

• EU–Mexico Free Trade Agreement

• COMESA

Which of the following is a key welfare effect of trade in services?

• Reduced competition

• Lower consumer choice

• Increased efficiency and innovation

• Higher tariffs

What is the primary purpose of international agreements on trade in services?

• To restrict trade between countries

• To set global rules and facilitate market access

• To eliminate all forms of government regulation

• To promote only domestic services

According to economic theory, trade in services between similar countries can arise primarily due to:

• Comparative advantage only

• Differences in natural resources

• Increasing returns to scale and specialisation

• Government intervention