Smaller nations may seek safe haven trading arrangemants with larger nations when future access to that market seems uncertain. This was reason for the formation of:
A. WTO
B. GATT
C. NAFTA
D. none of these
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As new regional trading arrangements are formed, the opportunity cost of remaining outside:
A. increases
B. dreases
C. remains stable
D. none of these
Regardingtheinterestsofanonmembernation (with stonger competetiveness) ofaregionaltradingagreement:
A. theexportinginterestsofthenonmembernationoutweighitsimportcompetinginterests
B. theimportcompetinginterestsofthenonmembernationoutweighitsexportinginterests
C. thenonmembernationwillhaveabetternegotiatingposition
D. thenonmembernationhasnointerestintheregionaltradingarrangement
The WTO's efforts to promote trade liberalization globally:
A. have become easier
B. have become more difficult
C. have remained stable
D. none of these is correct
All of the following are factors mitigating against global trade liberalization EXCEPT:
A. regional trading arrangements may limit trade liberalization with outsiders
B. a small nation might do better entering into a pact with a larger nation, rather than competing globally
C. trading bloc members may not realize economies of scale through global liberalization
D. trading bloc members prefer competing globally rather than locally
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