Question

1. What does it mean when trade as a share of GDP is more than​ 100% of its​ GDP?

A. the value of trade passing through some​ nations' borders equals the amount of goods and services they produce

B. the value of trade passing through some​ nations' borders actually exceeds the amount of goods and services they produce

C. the value of export actually exceeds the amount of goods and services they produce

D. the value of import actually exceeds the amount of goods and services they produce

E. the value of trade passing through some​ nations' borders actually is less than the

2.Which of the following was NOT a benefit of the General Agreement on Tariffs and Trade

​ (​GATT)?

A. GATT defined protection of intellectual property rights.

B. GATT reduced average tariffs on merchandise trade.

C. GATT significantly improved the climate for trade.

D.GATT covered trade in services.

E. GATT lowered subsidies for agricultural products.

3. Which of the following statements about a foreign trade zone​ (FTZ) is​ FALSE?

A. FTZs reduce costs.

B. The number of maquiladoras has decreased.

C. Components are imported at a discount.

D. FTZs increase employment.

E. International companies can also store goods in FTZs.

Answer 1

1. the value of trade passing through some​ nations' borders actually exceeds the amount of goods and services they produce.

When trade is more than the GDP, it is more than 100% of the GDP.

2. GATT lowered subsidies for agricultural products

GATT did not lower subsidies for agriculture products but actually introduced subsidies.

3. Components are imported at a discount.

In FTZs components are at reduced costs ,tarrif etc but not at discount.