International Trade Regulations Quiz

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What is the main purpose of the EU's Common Agricultural Policy (CAP)?

To reduce the EU's agricultural production
To set a common external tariff for EU countries
To ensure a fair income for EU farmers (correct)
To promote free trade within the EU

What is the effect of an export subsidy on the importing country's market?

An increase in the imports of the subsidized product (correct)
An increase in the domestic price of the subsidized product
An increase in the domestic production of the subsidized product
A decrease in the domestic consumption of the subsidized product

Why did the EU's agricultural production increase under the CAP?

Due to the support price being higher than the world market price (correct)
Due to the reduction of import tariffs
Due to the use of efficient farming practices
Due to the increase in agricultural research and development

What is the main criticism of the EU's CAP?

It leads to overproduction and environmental degradation (C) Signup and view all the answers

What is the main goal of the strategic trade policy?

To create a comparative advantage in certain sectors (D) Signup and view all the answers

What is the primary objective of the EU's single market rules in Northern Ireland?

To ensure compliance with EU laws on product standards (C) Signup and view all the answers

What is the purpose of checks on GB goods at Northern Ireland ports?

To ensure compliance with EU laws (D) Signup and view all the answers

What is the EU's Carbon Border Adjustment Mechanism (CBAM) primarily aimed at?

Addressing carbon leakage and high carbon emissions (A) Signup and view all the answers

Why is there a risk of creating a monopoly for state-owned enterprises?

As a result of local content requirements (D) Signup and view all the answers

What is the primary effect of the agreement to move inspections and document checks from the Irish border to between Northern Ireland and Great Britain?

The creation of a new trade border in the Irish Sea (C) Signup and view all the answers

What is the primary objective of implementing an antidumping procedure?

To protect domestic industries from unfair competition (B) Signup and view all the answers

What is the main difference between an infant industry protectionism and a quantitative restriction?

One is a temporary measure, while the other is a permanent measure (A) Signup and view all the answers

What is the purpose of a safeguard clause in international trade agreements?

To allow for temporary protection of domestic industries from import surges (A) Signup and view all the answers

Why might a country impose a retaliatory tariff on imports from another country?

To protect its domestic industries from unfair trade practices (A) Signup and view all the answers

What is the main criticism of using trade policy instruments, such as tariffs and quotas, to protect domestic industries?

They can lead to trade wars and retaliation (C) Signup and view all the answers

What is the primary goal of the European Union's antidumping and anti-subsidy policy?

To protect the EU industry from material injury caused by dumped or subsidized imports (A) Signup and view all the answers

What is a common method used by governments to counter dumping?

Imposing antidumping duties on imported goods (D) Signup and view all the answers

What is the main difference between antidumping and countervailing duties?

Countervailing duties are imposed on subsidized imports, while antidumping duties are imposed on dumped imports (D) Signup and view all the answers

What is necessary for the European Commission to initiate an antidumping investigation?

A formal complaint from a domestic industry (D) Signup and view all the answers

What is the purpose of the investigation procedure in antidumping cases?

To determine whether dumping or subsidies have caused material injury to the EU industry (C) Signup and view all the answers

What is the purpose of the new detacherment regulations?

To reduce unfair competition in West-European countries (A) Signup and view all the answers

According to the new regulations, how often must trucks return to their country of registration?

At least every 8 weeks (D) Signup and view all the answers

Which of the following countries' transport ministers are against the new regulations?

Bulgaria, Cyprus, Estonia, Hungary, Malta, Latvia, Lithuania, Poland, and Romania (B) Signup and view all the answers

What is the timeframe for the implementation of the new regulations on driving and rest times?

20 days after the official announcement (D) Signup and view all the answers

What is the impact of the pandemic on the transportation industry, according to the text?

It has led to a decrease in transportation operations (C) Signup and view all the answers

What was the main goal of the Uruguay Round (1986-94)?

To reduce tariffs by 36% and increase the number of goods with zero tariffs (D) Signup and view all the answers

What is the main principle of the Most Favoured Nation (MFN) clause?

To ensure equal treatment of all WTO member countries (B) Signup and view all the answers

What was the main issue that led to the breakdown of the Doha Round in 2008?

Disagreement over agricultural subsidies between the EU and the US (C) Signup and view all the answers

What is the purpose of the Enabling Clause in the WTO?

To provide special and differential treatment to developing countries (D) Signup and view all the answers

What is the main goal of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement?

To establish common standards for intellectual property rights among WTO members (B) Signup and view all the answers

What percentage of the European budget is allocated to promoting dairy and meat products?

32% (B) Signup and view all the answers

What is the primary objective of establishing 'drempelverlagende gemeenschappelijke handelshuizen' in the strategic trade policy?

To provide comparative advantage through R&D (A) Signup and view all the answers

According to Krugman and Obstfeld, what is the challenge in selecting sectors for strategic trade policy?

Picking sectors that are suitable for strategic trade policy (C) Signup and view all the answers

What is the effect of an increase in production volume on the cost of R&D per unit?

It decreases the cost of R&D per unit (D) Signup and view all the answers

What is the primary motivation behind the European Union's promotion of dairy and meat products?

To support the economic interests of European farmers (D) Signup and view all the answers

What is the main advantage of subsidizing R&D in the strategic trade policy?

It creates a comparative advantage through positive external effects (B) Signup and view all the answers

What is the primary focus of the strategic trade policy in the context of export markets?

Bringinging knowledge about export markets together through government initiatives (B) Signup and view all the answers

What is the example of a sector that was strategically supported by the government in Japan?

Half-conductor sector (C) Signup and view all the answers

What is the primary challenge in implementing strategic trade policy in the European Union?

Selecting sectors that are suitable for strategic trade policy (B) Signup and view all the answers

What is the effect of increasing R&D investments on the production volume of a sector?

It increases the production volume (C) Signup and view all the answers