SA IBL TB8e Ch09

CHAPTER 9—GATT LAW AND THE WORLD TRADE ORGANIZATION: BASIC PRINCIPLES

TRUE/FALSE

1. The Uruguay round of tariff negotiations was the first major multilateral trade negotiating session since World War II.

ANS: F PTS: 1

2. The most common device for regulating imports is the quota.

ANS: F PTS: 1

3. Nontariff barriers are any restrictions, interference, or disincentive to trade other than tariffs.

ANS: T PTS: 1

4. Quotas serve to increase the amount of imports of a product.

ANS: F PTS: 1

5. An embargo is a complete ban on trade with a foreign nation.

ANS: T PTS: 1

6. Other examples of nontariff trade barriers include exchange control on currencies, performance standards, and foreign customs procedures.

ANS: T PTS: 1

7. When a nation's import regulations or procedures are transparent, it is difficult for foreign firms to gain entrance to its markets.

ANS: F PTS: 1

8. Usually, import restrictions that protect one sector of a country's economy will result in foreign retaliation against another sector.

ANS: T PTS: 1

9. The General Agreement on Tariffs and Trade is today the most important instrument for regulating international trade.

ANS: T PTS: 1

10. A "free trade" nation has no barriers to trade.

ANS: F PTS: 1

11. An embargo only applies to imports from a particular nation.

ANS: F PTS: 1

12. When import regulations are readily available to importers and exporters, they are considered to be transparent.

ANS: F PTS: 1

13. Although the 1947 GATT was never ratified by the U.S. Congress, it was considered legally binding in the United States under international law.

ANS: T PTS: 1

14. The 1947 GATT provided stiff penalties for the misuse of intellectual property.

ANS: F PTS: 1

15. In a tariff concession, one country promises not to levy a tariff on a given product at a level higher than agreed upon.

ANS: T PTS: 1

16. In the dispute regarding the European Union's importation of Latin American bananas, the dispute panel found no