题目内容

By removing discriminatory government procurement laws within the European Union, member nations hoped to benefit from all of the following except:

A. EU governments could purchase from the cheapest foreign suppliers
B. Increased competition occurs as domestic firms compete with foreign firms previously shut out of the domestic market
C. Industries are restructured which permits surviving firms to achieve economies of scale
D. Agricultural prices fall as more farmers are allowed to produce their commodities

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Suppose that government procurement liberalization results in the U.K. government importing automobiles form Germany, the low-cost EU manufacturerer. Cost savings could result from all of the following except:

A. Competition effect
B. Scale-economy effect
C. Protective effect
D. Trade effect

Suppose that steel from Japan faces a 20 percent traiff in France and a 25 Percent traiff in Italy. while France and Italy maintain free trade between each other. France and Italy are therefore part of a (an):

A. Free trade area
B. Customs union
Common market
D. Economic union

Suppose that Mexico and Canada form a free-trade area and Canada begins importing steel from Mexico rather than from Germany. There occurs:

A. Trade diversion
B. Trade creation
C. Trade destruction
D. Trade exhaustion

Suppose that Mexico and Canada form a free-trade area. Mexicans then decrease auto manufacturing and increase imports of autos form Canada,whiletheCanadiansdecreasecomputerproductionandimportmorecomputersfromMexico.Thisisanexampleof:

A. Trade diversion
B. Trade creation
C. Trade destruction
D. Trade exhaustion