Question

1. The ______________ is an international organization that establishes codes of conduct for international trade.

a. International Monetary Fund

b. Bank for International Settlements

c. World Bank

d. World Trade Organization

2. According to the Reciprocal Trade Agreements Act of 1934, the president could lower tariffs by up to 50 percent of the existing level without congressional approval.

a. True b. False

3. Industrial policy attempts to foster the development of industries that offer long-run comparative disadvantages and which are insulated from other sectors of the economy.

a. True b. False

4. The principle of normal trade relations (most-favored-nation) treatment was established with the passage of the

a. Fordney-McCumber Act of 1922.

b. Reciprocal Trade Agreements Act of 1934.

c. Smoot-Hawley Act of 1930.

d. Trade Act of 1974.

Answer 1

Answers

1 The World trade organisation is an international organisation that established code of conduct for international trade.

2 According to Reciprocal Trade Agreements Act of 1934, the president could lower the tariff according to the balanced requirements in trade without the congressional support therefore the rates were not defined therefore it's False.

3 Industrial policy attempt to foster the development of industries that offer long run comparative disadvantage and which are insulted from other sectors of the economy therefore the answer is True.

4 The principle of normal trade relations treatment was established with the passage of Reciprocal Trade Agreements Act of 1934.