65 Test questions and answers

65 Test questions and answers International Trade Law

From:

The Law and Policy of the World Trade Organization 5 th ed. 2021 / Peter van den Bossche

9781108747103 

Cambridge University Press I also included some questions that were on the real test (Maastricht university) at the end. 1 / 2

• Economic Globalization

1.What is economic globalization?Gradual integration of national economies into one borderless global economy, involving international trade and foreign direct investment

(FDI).

2.What are two key drivers of economic globalization?Technological advancements and trade/FDI liberalization.

3.What are the positive impacts of economic globalization?Reduction of poverty, better international cooperation, and enhanced economic integration.

4.What are the criticisms of globalization?Environmental degradation, cultural dispossession, and economic inequality.

• Free Trade vs. Restricted Trade

5.What is the theory of comparative advantage?Countries can benefit from trade even if they are not the best at producing any good, by specializing in what they produce most efficiently.

6.Name one argument for restricted trade.Infant industry protection, to allow new industries in developing countries to grow.

7.What is the Heckscher-Ohlin Model?It refines previous trade theories, emphasizing specialization based on a country's factor endowments.

8.Why do developing countries often restrict trade?To protect domestic industries and generate government revenue.

• The WTO and International Trade Rules

9.When was the WTO established?January 1995.

• What was the WTO's predecessor?

The General Agreement on Tariffs and Trade (GATT 1947).

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