Question 1

In the decision involving tariffs on Latin American bananas,the panel:

Accepted Answer

The panel recommended that the tariffs be adjusted to align with the EEC's obligations under the General Agreement on Tariffs and Trade (GATT).

Question 2

Compare and contrast unconditional and conditional MFN trade.

Accepted Answer

The answer of Compare and contrast unconditional and conditional MFN...

Question 3

What are the similarities and differences between the GATT and WTO dispute resolution procedures?

Accepted Answer

The answer of What are the similarities and differences between...

Question 4

When a nation that belongs to WTO imposes a tariff or quota on imported products,it is supposed to do so within the guidelines established by GATT.If it does not do so within GATT's guidelines:

Accepted Answer

If a nation that belongs to WTO imposes a tariff or quota on imported products outside of GATT's guidelines, it may be subject to a proceeding pursuant to the WTO's Dispute Settlement Understanding. This is the most common and effective way for WTO members to resolve disputes and ensure compliance with trade agreements. Military retaliation and lawsuits in the World Court are not typical responses to violations of GATT.

Question 5

The term used to describe some action taken by a GATT member country in violation of the GATT agreement is:

Accepted Answer

"Nullification and impairment" is the term used to describe a GATT member country violating the agreement. This term refers to the situation where a GATT member country takes action that nullifies or impairs the benefits that another member is entitled to receive under the GATT agreement. This can happen, for example, when a country imposes a trade barrier that prevents another country from exporting goods to its market, thereby nullifying the benefits that the exporting country was entitled to receive under the GATT agreement.

Question 6

According to GATT,quotas are considered acceptable devises for regulating trade only where:

Accepted Answer

According to GATT, quotas are only considered acceptable when a nation is imposing a temporary safeguard to protect its balance of payments. This is the only acceptable reason for implementing quotas according to GATT.

Question 7

Compare and contrast Japan's former Large-Scale Retail Stores Law with its present Large-Scale Retail Store Location Law.

Accepted Answer

The answer of Compare and contrast Japan's former Large-Scale Retail...

Question 8

The phrase to describe when a foreign government's import regulations are not made readily available to the public or are hidden or disguised in bureaucratic rules or practices is:

Accepted Answer

The phrase "not transparent" refers to a lack of openness or clarity in the government's import regulations. If the regulations are not readily available to the public or are hidden or disguised, it can be difficult for businesses to comply with them, which can create barriers to trade.

Question 9

Countries A and B both produce coffee.Both countries belong to GATT.Country A imports coffee from B.Once B's coffee enters A's stream of commerce,under the national treatment provisions of GATT:

Accepted Answer

Under the national treatment provisions of GATT, once B's coffee enters A's stream of commerce, Country A cannot subject B's coffee to higher internal taxes or charges than its domestic coffee. This is because GATT requires that imported goods be treated no less favorably than domestic goods. Therefore, choice B and C are incorrect.

Question 10

Describe the benefits and detriments of enacting a quota?

Accepted Answer

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Question 11

The U.S.Department of Defense needs to buy several million dollars worth of tires for its armored personnel carriers.An American manufacturer can supply the tires for $20 million.A foreign supplier can provide the tires for $15 million.Under these facts:

Accepted Answer

The U.S. has laws like the Buy American Act, which generally require the government to prefer U.S. products in its purchases, even if they are more expensive than foreign alternatives.

Question 12

Assess the relative value of a reported U.S.appellate (or trial)decision and a WTO panel report in a trade dispute.

Accepted Answer

The answer of Assess the relative value of a reported...

Question 13

All of the following are basic principles of GATT except:

Accepted Answer

GATT principles do not include non-reciprocal tariff increases. Instead, the principles include commitments to normal trade relations, elimination of import quotas, and non-discrimination against imported goods.

Question 14

The GATT Agreement on Technical Barriers to Trade is a code that has as its purpose:

Accepted Answer

The GATT Agreement on Technical Barriers to Trade aims to harmonize standards and standard-setting techniques among nations in order to reduce technical barriers to trade. It does not address the free movement of technical equipment or establish technical data for computer applications.

Question 15

In what ways are GATT and the WTO similar? Different?

Accepted Answer

The answer of In what ways are GATT and the...

Question 16

The concept that runs throughout the GATT requires that the products of all nations be treated equally and without discrimination by importing nations.This is the principal behind:

Accepted Answer

The principle of most-favored-nation trade requires that all nations should be equally treated and without discrimination by importing nations, which is in line with the concept that runs throughout the GATT. Nullification and impairment refer to a dispute settlement mechanism under GATT, ad valorem tariffs are a specific type of tariff, and nontariff trade barriers refer to any trade barrier that is not a tariff.

Question 17

Countries A,B,and C belong to GATT.Countries X and Y do not.A has a 7% tariff on televisions from B.C,X,and Y also export televisions.Under unconditional most-favored-nation trade of GATT:

Accepted Answer

Under the unconditional most-favored-nation (MFN) principle of GATT, any favorable tariff rate given to one member country must be extended to all other member countries. Therefore, Country C, as a GATT member, automatically gets the 7% tariff rate on televisions.

Question 18

Virtually all nations provide import protection for domestic agricultural interests:
I. And the GATT Agreement specifically prohibits such protection with no exceptions.
II. And this problem exists because nations try to provide market stability and protection for farmers.

Accepted Answer

The statement in option I is incorrect as the GATT Agreement does allow exceptions for import protection for domestic agriculture interests. Option II is correct as nations try to protect their farmers and maintain market stability by implementing import protection measures.

Question 19

Which of the following are not true regarding WTO dispute settlement procedures?

Accepted Answer

This statement is untrue. If a solution is not reached, the panel has the authority to authorize trade sanctions.

Question 20

Compare and contrast direct and indirect nontariff barriers.

Accepted Answer

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Quiz 9: Gatt Law and the World Trade Organization: Basic Principles