题目内容

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

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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

IftheUnitedStatesandCanadaabolishalltariffsoneachother'sgoodsandimplementacommontariffongoodsimportedfromother countries,thereoccursa(an):

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