Q&A Hero

Q: The Anti-dumping Code prohibits dumping.

Q: Selling exported goods at prices below their normal value is called subsidizing.

Q: Derived value is the customs value of goods that is based on their price calculated from the cost of manufacture, overhead, and handling.

Q: Deductive value is the customs value of imported goods that is based on the price actually paid or payable for goods at the time they were sold for export.

Q: The Agreement on Implementation of Article VII of GATT 1994 is designed to harmonize the methods used by WTO member states to determine the value of goods for customs purposes.

Q: Each member of the Missile Technology Control Regime administers its missile-related export controls independently.

Q: The Zangger Committee is also known as Non-Proliferation Treaty Exporters Committee.

Q: The Australia Group is an informal multilateral group of states concerned with curbing the proliferation of chemical and biological weapons.

Q: General exceptions are situations that excuse a WTO member state from complying with its GATT obligations in order for the state to protect certain essential public policy objectives.

Q: Even after a free trade area or customs union is established, GATT rules apply to the constituent states, and not to the area or union as a whole.

Q: A customs union consists of a group of states that have reduced or eliminated tariffs among themselves but that maintain their own individual tariffs in dealing with other states.

Q: The Generalized System of Preferences, allows developing countries to export all (or nearly all) of their products to a participating developed country on a nonreciprocal basis.

Q: The provisions of GATT that prohibit a state from taking action contrary to the General Agreement are directly effective.

Q: The member states of GATT 1994 owe legal obligations to the contracting parties of GATT 1947

Q: The term safeguard refers to the relinquishment of an obligation owed by another.

Q: The WTO can make a decision by a vote if a consensus cannot be reached.

Q: Multilateral Trade Agreements of the WTO Agreement are binding on all members of the WTO.

Q: The Tokyo Round led to the establishment of the World Trade Organization.

Q: The Kennedy Round produced an agreement on anti-dumping.

Q: What is a subsidy? What are the different types of subsidies?

Q: Explain the Wassenaar Arrangement.

Q: Differentiate between general exceptions and security exceptions.

Q: What is an escape clause?

Q: Differentiate between free trade area and customs union.

Q: Explain the concept of direct effect in the context of GATT.

Q: Enlist the five main organs of the WTO.

Q: What are the responsibilities of the World Trade Organization?

Q: What was the significance of the Uruguay Round of the GATT?

Q: Explain any three of the main principles of GATT 1947?

Q: ________ are laws, regulations, and administrative procedures used by states for determining the country of origin of goods. A. Rules of origin B. Anti-dumping codes C. Countervailing measures D. Conformity assessment procedures

Q: A(n) ________ is an emergency action that a WTO member state may take in order to protect its domestic industry from serious injury due to a sudden increase in the quantity of an imported product. A. servitude B. safeguard C. delict D. usus

Q: A(n) ________ is a duty specifically levied to offset a subsidy. A. countervailing measure B. customs duty C. safeguarding measure D. excise duty

Q: A(n) ________ is a subsidy that may be challenged as trade distorting if it injures the domestic industry of another WTO member state, nullifies or impairs the benefits due to another member state, or causes or threatens to cause serious prejudice to the interests of another member state. A. nonactionable subsidy B. consumption subsidy C. actionable subsidy D. prohibited subsidy

Q: A(n) ________ is a subsidy that is presumed to be trade distorting because it requires export performance or is contingent upon the use of domestic instead of imported goods. A. nonactionable subsidy B. consumption subsidy C. actionable subsidy D. prohibited subsidy

Q: A(n) ________ is a subsidy that is permissible and nonchallengeable, such as government funding to underwrite research activities, to aid disadvantaged regions, or to help existing facilities adapt to new environmental requirements. A. actionable subsidy B. prohibited subsidy C. nonactionable subsidy D. consumption subsidy

Q: Which of the following best describes dumping? A. It is a duty specifically levied to offset a subsidy. B. It is the relinquishment of an obligation owed by another. C. It is a financial contribution made by a government or other public body that confers a benefit on an enterprise, a group of enterprises, or an industry. D. It is the selling of exported goods at prices below their normal value.

Q: The ________ defines the measures that WTO member states may take to protect the life and health of humans, animals, and plants. A. Anti-Dumping Code B. Agreement on the Application of Sanitary and Phytosanitary Measures C. Agreement on Technical Barriers to Trade D. Agreement on Preshipment Inspection

Q: ________ are voluntary guidelines that specify the same things that technical regulations mandatorily specify. A. Standards B. Safeguards C. Rules of origin D. Conformity assessment procedures

Q: How does a bank transfer money internationally?

Q: Explain a future contract.

Q: Explain the role of the Bank for International Settlements as the central banks bank?

Q: What is the role of the International Development Agency (IDA) and the International Finance Corporation (IFC) in connection with the World Bank?

Q: Explain the IMFs conditionality requirement.

Q: Describe the standby arrangement facility provided by the IMF.

Q: What is the basic code of conduct that member nations are obligated to follow upon joining the IMF?

Q: Describe the significance of IMF quotas.

Q: Discuss the use of the IMFs SDR in international transactions?

Q: What are the different types of monies that are required in an international transaction?

Q: A(n) ________ is a three-party instrument on which the drawer makes an unconditional order to a drawee to pay a named payee. A. allonge B. bill of exchange C. letter of credit D. certificate of deposit

Q: Which of the following terms refers to the nearly simultaneous purchase of a commodity (such as a currency) in one market and its sale in another to profit from the price differential? A. allonge B. expropriation C. arbitrage D. condonation

Q: In an option contract, if the right is to make a sale, the option is known as a ________. A. spread eagle B. straddle C. call D. put

Q: A(n) ________ contract creates the rightbut not the obligationto buy or sell a specific amount of a commodity at a fixed price within an agreed-upon period of time. A. forward B. spot C. future D. option

Q: In which of the following contracts is the delivery delayed, though the commodity is sold and paid for? A. a forward contract B. an option contract C. a spot contract D. a future contract

Q: Which of the following describes a spot contract? A. a contract that creates the rightbut not the obligationto buy or sell a specific amount of a commodity at a fixed price within an agreed-upon period of time B. a contract in which a commodity is presently sold and the price is presently paid but delivery is, by agreement, delayed to a later date C. a contract for the immediate sale and delivery of a commodity, such as a currency D. a promise to buy or sell a commodity for a specified price, with both delivery and payment to be made at a specified future date

Q: Which of the following is true of a futures contract? A. They are not standardized contracts. B. They are transferable contracts. C. They require immediate delivery of the commodity. D. They require immediate payment of the price.

Q: When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________. A. commercial bank B. central bank C. reserve bank D. correspondent bank

Q: A(n) ________ is a promissory note issued by a bank in which the bank promises to repay money it has received, plus interest, at a certain time. A. letter of credit B. certificate of deposit C. option contract D. allonge

Q: Which of the following is the most commonly used short-term liquid instrument for trading in the interbank market? A. a certificate of deposit B. a deed C. a letter of credit D. a check

Q: Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________. A. checking accounts B. asset accounts C. Eurocurrency deposits D. recurring deposits

Q: Which of the following organizations issues bank notes and coins and regulates the quantity of money in circulation? A. the World Bank B. the International Monetary Fund C. A commercial bank D. A central bank

Q: Which of the following is an example of a central bank that is owned by a national government? A. the Bank of England B. the Central American Monetary Union C. the World Bank D. the Arab Monetary Fund

Q: The ________ is an intergovernmental organization, headquartered in Basel, which functions as a bank for the worlds central banks. A. International Monetary Fund B. World Bank C. Bank for International Settlements D. World Trade Organization

Q: Which of the following is a relation between the World Bank and the Global Environment Facility (GEF)? A. The World Bank is responsible for managing the Trust Fund of the GEF. B. The World Bank determines what projects will be funded by the GEF. C. The GEF only funds nations that are members of the World Bank. D. The GEF is considered as the primary developmental arm of the World Bank.

Q: Which of the following is true of the International Fund for Agricultural Development (IFAD)? A. It is considered to be the developmental arm of the IMF. B. It is primarily concerned with funding projects concerning global environmental problems. C. Its membership is limited to the members of the Global Environmental Facility. D. Its membership is open to any member of the UN.

Q: Only countries that are parties to the Climate Change Convention or the ________ are eligible to receive funds from the Global Environment Facility (GEF). A. Basel Convention B. Convention on Biological Diversity C. Kyoto Protocol D. Bretton Woods Conference

Q: Which of the following facilitates come under Special IMF Facilities? A. reserve tranche B. Special Arrangements C. Concessional IMF Facility D. Contingent Credit Lines

Q: The Concessional IMF Facility is designed ________. A. to help countries address short-term balance-of-payments problems B. for providing bridging loans to member states while the IMF deliberates about whether to provide other funds to the particular member state C. for low-income member countries with protracted balance-of-payment problems D. to help a country deal with a temporary depletion of its foreign exchange reserves due to a natural disaster

Q: Which of the following IMF facilities essentially acts as bridging loans provided to member states while the IMF deliberates about whether to provide other funds to the particular member state? A. the Concessional IMF Facility B. the Standby Arrangement C. the reserve tranche D. the credit tranche

Q: Which of the following is true of the IMFs credit tranche? A. Each credit tranche is equivalent to 50 percent of the members quota. B. A member is entitled to four credit tranches. C. A credit tranche cannot be used to make balance-of-payments. D. All credit tranches are subject to similar rules or conditions.

Q: The IMFs _______ consists of that share of a member states quota that it did not contribute in its own currency. A. Standby Arrangement B. Extended Fund Facility C. reserve tranche D. credit tranche

Q: Which of the following sections of the IMF Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of current transactions? A. Section 2(a) of Article VIII B. Section 2(b) of Article VIII C. Section 5 of Article VIII D. Section 4 of Article VIII

Q: Which of the following is a principal argument against the enforcement of Article VIII, Section 2(b), of the IMFs Articles of Agreement? A. that it depends unduly on the gold exchange rate system of monetary exchange B. that it places a lot of importance on the gold reserves that a country owns C. that it downplays the importance of interdependence of member nations D. that it is at odds with a longstanding choice of law rule

Q: The IMF Agreement grants to the ________ of the Fund the authority to interpret the provisions of the Agreement. A. Board of Governors B. Executive Board C. members D. Central Council

Q: Which of the following was the major change made in the Second Amendment to the IMFs Articles of Agreement in 1976? A. It allows members to define the value of their currency by any criteria except gold. B. It implements the U.S. dollar as its international reserve currency. C. It establishes the IMFs SDR as an international currency. D. It prohibits members from pegging their currency to a currency basket.

Q: According to the par value system, every member of the IMF, on joining the Fund, ________. A. had to implement the U.S. dollar as its international reserve currency B. had to adopt the gold exchange rate system of monetary exchange C. had to declare a value at which its currency could be converted into gold D. had to define the value of their currency by any criteria except gold

Q: The currency exchange mechanism established in 1945 by the Articles of Agreement of the IMF was called the ________. A. gravity model of trade B. par value system C. gold exchange standard D. gold bullion standard

Q: Which of the following parts of the IMF gives the final approval for the quota a state seeking to join the IMF should pay? A. member states having at least 85 per cent of the total vote share B. all the member nations of the IMF C. the IMF Board of Governors D. the IMF Executive Board

Q: IMFs Articles of Agreement establishes ________. A. gold bullion as a standard of foreign exchange B. gold coins as a the primary source of foreign exchange C. SDR as the international form of currency D. a system for currency support

Q: According to economist John Maynard Keynes and U.S. Treasury official Harry Dexter White, which of the following was one of the conditions that had helped to produce and prolong the Great Depression of the 1930s? A. the shortage of production of gold in the U.S. B. the lack of a standard for determining the value of national currencies C. the dereliction of the code of conduct by IMF member states D. the lack of demand for the gold in national treasuries

Q: Which of the following meetings was instrumental in the creation of the International Monetary Fund? A. the Potsdam Conference B. the Solvay Conference C. the Bretton Woods Conference D. the Second Quebec Conference