Module 3: Understanding the Difference between WTO and GATT

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What was the primary focus of the GATT rules?

Trade in merchandise goods (correct)

Trade in services and intellectual property

Establishing an International Trade Organization

Forming a permanent institution

What was the character of the WTO's dispute settlement system compared to the GATT system?

Faster and more automatic, with less susceptibility to blockages (correct)

Totally dependent on the GATT system

Slower and more susceptible to blockages

Equally slow and automatic

What was the status of the GATT commitments?

Full and permanent

Optional and voluntary

Provisional and temporary (correct)

Partial and conditional

What was the key difference between the GATT and the WTO in terms of their institutional foundation?

The GATT had no institutional foundation, while the WTO had a permanent institution Signup and view all the answers

What is the difference between GATT 1947 and GATT 1994?

GATT 1947 was the original agreement, while GATT 1994 was the amended version until the Uruguay Round of Negotiations Signup and view all the answers

What is the nature of the WTO's membership?

The WTO has members Signup and view all the answers

What is the primary objective of anti-dumping duties?

To protect against unfair trade practices Signup and view all the answers

What is the main difference between anti-dumping duties and customs duties in terms of purpose?

Anti-dumping duties are for trade remedial measures, while customs duties are for fiscal policies Signup and view all the answers

What is the key characteristic of anti-dumping duties that distinguishes them from customs duties?

They can be suspended in case of an exporter offering a price undertaking Signup and view all the answers

What is the primary focus of anti-dumping duties and anti-subsidy measures?

Trade protection and fair trade practices Signup and view all the answers

How do anti-dumping duties and customs duties differ in their operational scope?

Anti-dumping duties are focused on trade remedial measures, while customs duties are focused on revenue generation Signup and view all the answers

What is one way a multinational corporation can benefit its home country?

By exporting components and finished products Signup and view all the answers

What is the relationship between anti-dumping duties and the concept of fair trade?

Anti-dumping duties are linked to the notion of fair trade Signup and view all the answers

What is a criticism of multinational corporations regarding their investment in host countries?

They invest in sectors that are profitable Signup and view all the answers

How do multinational corporations help to improve the standard of living in host countries?

By providing superior products and services Signup and view all the answers

What is a benefit of multinational corporations to the world economy?

They encourage international brotherhood and cultural exchanges Signup and view all the answers

What is a way a multinational corporation can support its other operations?

By assisting domestic suppliers and ancillary units Signup and view all the answers

What is a criticism of multinational corporations regarding their technology transfer?

They transfer outdated technology Signup and view all the answers

What is the main objective of a multinational corporation in a joint venture?

To provide capital and share profits Signup and view all the answers

In a joint venture, who typically provides technical know-how and managerial expertise?

The multinational corporation Signup and view all the answers

What is the characteristic of a turn-key project?

The multinational corporation constructs and operates the project from beginning to end Signup and view all the answers

What is the advantage of a turn-key project for underdeveloped countries?

It enables the completion of projects that require high technical skill and experience Signup and view all the answers

What is the role of the local partner in a joint venture?

To manage the day-to-day operations of the business Signup and view all the answers

What happens when a turn-key project is complete?

The project is handed over to the host country Signup and view all the answers

What is one of the advantages of FDI in terms of employment?

Employment generation Signup and view all the answers

What is a concern for small enterprises with regard to FDI?

They may be edged out of business Signup and view all the answers

What is a benefit of FDI in terms of technology?

Helps in transfer of new technologies Signup and view all the answers

What is a concern for the government with regard to FDI?

They have less control over the functioning of foreign companies Signup and view all the answers

What is one of the benefits of FDI in terms of trade?

Increase in exports Signup and view all the answers