Which of the following statements about the world trade organization are accurate?

Asked by GeneralRockBee4 on coursehero.com

True or False

1. A country that joins the WTO is required to increase its international trade with other member countries. (pp. 31-32)
2. The rules of the GATT are of no importance to us today, as these rules have been completely changed by its successor organization, the WTO. (p. 32)
3. The General Agreement on Trade in Services (GATS) requires member countries to open up all their service sectors to all other members of the WTO on a most-favoured-nation (MFN) basis. (p. 49)
4. The panels of the WTO Dispute Settlement Body are not empowered to make any new rules; they may simply apply the existing rules to a given set of facts. (pp. 51-52)
5. The chief rule-making body of the WTO is the Dispute Settlement Body. (p. 51)
6. There are no provisions in the WTO that allow a country to protect its domestic producers from a surge in imports unless it can be proved that such imports are either dumped or subsidized. (p. 40)
7. Countervailing duties may be imposed by an importing country provided there is proof of a financial or commercial benefit given to a producer, manufacturer, or grower by a government, even where there is no domestic industry in the importing country. (pp. 38-39)
8. There is no international superstructure to punish countries that do not adhere to WTO rules. (p. 32)
9. Once the WTO Appellate Body has issued a decision in a dispute, the disputing governments must immediately conform to the decision with no further discussions on settlement. (pp. 52-53)
10. In a WTO dispute between Canada and France over asbestos and asbestos products, the WTO Appellate Body held that France was entitled to prohibit these products on the grounds of sufficient scientific evidence that the products posed a risk to human health. (pp. 40-41)
 

Multiple Choice
1. Which of the following is true? (p. 45)
a. A customs union imposes a common external tariff on goods imported into the customs union while maintaining tariffs on the exchange of goods between participating countries.
b. A customs union imposes a common external tariff on goods imported into the customs union and eliminates tariffs on the exchange of goods between participating countries.
c. A customs union imposes common policies for the internal operation and integration of the combined market between the participating countries.
d. Both (b) and (c) are true.

2. Which of the following statements is correct? (p. 35)
a. The concept of bound tariffs is a cornerstone for the world trading system and was first applied after the WTO was formed in 1995.
b. The most-favoured-nation rule requires that tariffs be applied equally to all member countries without exception.
c. Under the national treatment rule, once a good or a service is legally present in a country, it must receive the same treatment as a domestic good or service.
d. All of the above statements are correct.
e. None of the above statements is correct.

3. Which of the following statements is correct? (p. 37)
a. There are no exceptions in the WTO rules to the most-favoured-nation (MFN) principle.
b. There is normally no necessity for countries acceding to the WTO to amend their domestic legislation, as all provisions of the WTO agreements automatically apply to the citizens of member countries.
c. The WTO anti-dumping (AD) rules allow individual governments to act against dumped imports where there is dumping and material injury to the competing domestic industry.
d. None of the above statements is correct.
e. Only (a) and (c) are correct.
 

4. Which of the following is true? (p. 46)
a. Free trade areas and customs unions are a violation of the most-favoured-nation principle, but were permitted by the contracting parties to the GATT so long as they created trade.
b. Free trade areas and customs unions are a violation of the national treatment principle, but were permitted by the contracting parties to the GATT so long as they created trade.
c. Free trade areas and customs unions do not conflict with either the most-favoured-nation or national treatment principles of the GATT.
d. None of the above is true.

5. Which of the following statements is correct? (pp. 30-31)
a. Members of the WTO are free to develop their own AD and CVD duty law, free from any rules developed by multilateral organizations.
b. The founding documents of the WTO comprise more than 20 different agreements: countries are free to accede to all or a part of the list as suits their own domestic trade policy.
c. A major change accomplished by the Uruguay Round was the inclusion of services in the international trade rules of the WTO.
d. All of the above are correct.
e. Only (a) and (c) are correct.

6. Which of the following statements is correct with respect to the WTO? (p. 49)
a. The most-favoured-nation principle (MFN) is the fundamental guiding principle of the organization: it has been credited with lowering tariffs in world trade and there are no exceptions to this rule.
b. The principle of national treatment requires that a good or service that is exported to the territory of another member is entitled to receive the same treatment as it would in its home market.
c. Because of the way that services are traded, Uruguay Round negotiators found themselves having to face issues which have traditionally been regarded as domestic process and measures.
d. All of the above are correct.
e. Only (b) and (c) are correct.
 

7. Which of the following statements is not correct? (pp. 33-34)
a. One of the major achievements of the Uruguay Round was the inclusion of agriculture as a sector subject to WTO regulation.
b. Under the GATT, individual countries were prohibited from imposing quantitative restrictions (quotas) on certain agricultural products.
c. Under WTO rules, trade barriers in agriculture were to be made more transparent and quotas were to be "tariffied."
d. All of the above are correct.
e. Only (a) and (b) are correct.

8. Which of the following is not true? (p. 39)
a. A safeguard measure is generally applied following a justified complaint from a domestic industry.
b. A safeguard measure requires an investigation to determine that the domestic industry is being seriously injured by increased imports.
c. A safeguard measure must be targeted only at a specific country's imports.
d. A safeguard measure must be applied temporarily.

9. The WTO is shaped by certain rules and principles contained in the agreements signed by the contracting parties (members). Which of the following are rules or principles adopted by the WTO and applied in its Dispute Settlement decisions? (p. 51)
a. Member countries must apply the same standards to domestic and imported products alike, without discrimination.
b. Member countries are permitted to adopt measures necessary to protect human, animal, or plant life or health, and measures relating to the conservation of exhaustible natural resources.
c. Member countries may impose restrictive quotas or duties on products based on historic preferences or scientifically unverified health concerns where it has been clearly demonstrated that this is what the domestic market demands.
d. All of the above are correct.
e. Only (a) and (b) are correct.
 

10. Which of the following statements is correct? (pp. 49-50)
a. The General Agreement on Trade in Services (GATS) has as its goal the liberalization of international trade in services.
b. Under GATS, the definition of services includes services provided under government authority and without a commercial purpose.
c. The GATS rules present no challenge to Canadian policy-makers in the areas of health or education, as our market in these fields is already fully open to the commercial sector.
d. All of the above are correct.
e. Only (a) and (b) are correct.
 

11. Which of the following statements is correct? (pp. 47-48)
a. Rules of origin are used to define where a product is made.
b. The origins of a good will determine whether it qualifies for MFN or other preferential treatment.
c. There is at present no agreement among WTO members to provide for common or harmonized rules of origin.
d. All of the above are correct.
e. Only (a) and (b) are correct.

12. Which multilateral treaty became the basis for the international trading system from 1947 until the formation of the World Trade Organization (WTO) in 1995? (p. 30)
a. International Trade Organization (ITO)
b. International Chamber of Commerce (ICC)
c. General Agreement on Tariffs and Trade (GATT)
d. The Bretton Woods System
e. None of the above.

13. The World Trade Organization (WTO) bundle of agreements includes the following: (pp. 31-32)
a. General Agreement on Tariffs and Trade 1994 (GATT 1994)
b. General Agreement on Trade in Services (GATS)
c. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement)
d. All of the above are correct.
e. Only (a) and (b) are correct.
 

14. The Binding Concessions Rule provides: (pp. 32-35)
a. Once a WTO member lowers a tariff, it becomes bound and the country is obligated not to increase the tariff on a given product.
b. Requires that tariffs be applied equally to all member countries
c. Requires that once a good or service is legally present in a country, it must receive the same treatment as a domestic good or service
d. None of the above are correct
e. Only (b) and (c) are correct.
 

15. The Dispute Settlement Understanding (DSU) that was adopted in the Uruguay Round: (pp. 51-53)
a. Provides no timetable for the overall resolution of disputes
b. Set clear time frames associated with different stages in the dispute-settlement process
c. Allows losing parties to circumvent the dispute-settlement process
d. Provides that rulings are automatically adopted unless there is a consensus to reject the ruling; this is called "reverse consensus."
e. Only (b) and (d) are correct.

16. The Agreement on Trade-Related Aspects of International Property Rights (TRIPS Agreement) (p. 50)
a. Attempts to bring protection of Intellectual Property (IP) under common international rules
b. Establishes member countries' obligations to provide minimum levels of protection for copyright, trademarks, geographical indications, industrial designs, patents integrated circuit topographies (computer chips), and trade secrets
c. Includes, as basic principles, two WTO non-discrimination rules that apply to intellectual property protection: National treatment and MFN treatment.
d. All of the above are correct
e. None of the above are correct.

Answered by PresidentSteel3747 on coursehero.com

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