ITL compiled MCQ final - mcq on international trade law semester 8, ipu PDF

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ITL MCQSQ1. Dumping refers to:A. Reducing tariffsB. introduction into the commerce of another country at less than its normal value C. Buying goods at low prices abroad and selling at higher prices locallyD. Expensive goods selling for low pricesQ 2. US Government donates Pfizer vaccine which costs ...

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ITL MCQS

Q1. Dumping refers to: A. Reducing tariffs B. introduction into the commerce of another country at less than its normal value C. Buying goods at low prices abroad and selling at higher prices locally D. Expensive goods selling for low prices Q 2. US Government donates Pfizer vaccine which costs 14$ in US to India at 2$ under Covax. Is it dumping? a. Yes b. No Q3. Country A exports 100 units of product X in Country B. Only 2 units of the same product X is sold in domestic market of country A. Can sale in domestic market constitute a valid measure of Normal Value for the purpose of dumping? a. Yes in all circumstances b. Ordinarily No but acceptable if in certain cases c. No in all circumstances Q4. When is the Third Country price method or Cost method (Constructed) used to calculate margin of Dumping? a. No sales in Ordinary Course of Trade b. Low Volume sale c. Sale in particular Market Situation

d. All of the above Q5. Sales below cost ( fixed+variable+SGA expenses) in Domestic market can be included in calculation of Normal value 1. True in certain special circumstances 2. False Q6. In the question above if such sales are made only for 4 months will they be included? a. Yes b. No Q7. If there is no export price which can be used for calculating the margin of dumping, a constructed export price may be used which may be the first sale price charged to an independent buyer in the export market a. True after accounting for taxes, transport costs incurred after importation and profits b. False Q8. To establish margin of Dumping which of the methods are used a. comparison of a weighted average normal value with a weighted average of prices of all comparable export transactions b. comparison of normal value and export prices on a transactionto-transaction basis c. comparison of a weighted average normal value to prices of individual export transactions in certain cases d. All of the above

Q9. Cumulative determination of injury in cases where imports of a product from more than one country are simultaneously subject to anti-dumping investigations can be made a. True provided certain conditions are fulfilled b. False Q10. Can territory of a Member be divided into two or more competitive markets and the producers within each market regarded as a separate industry in anti- dumping investigations? a. Yes but in only exceptional circumstances b. No Q11. The margin of dumping is calculated as 1.75% of the export price. What is the maximum Anti- Dumping Duty that can be imposed? a. b. c. d.

1.75% of the export price 2% of the export price 0 1% of the export price

Q12 "basic agricultural product" in relation to domestic support commitments is defined as the product as close as practicable to the point of ………… sale as specified in a Member's Schedule. a. b. c. d.

Second First Any Last

Q13. AMS, EMS and TAMS are expressed in a. Volume terms b. Monetary terms Q14.Agreement on Agriculture applies to all products

a. False, it applies to products listed in Annex 1 to the AOA b. True, except some products listed in Annex 1 to the AOA Q15 Are fish and fish products covered under the AOA discipline? a. No b. Yes Q16 Under AOA A) Members cannot maintain minimum import levy measures. B)Members cannot revert to minimum import prices which have been converted into ordinary customs duties a. only A is correct b. only B is correct c . Both A and B is correct d.Both A and B are false Q 17. Under the Special Safeguard Provision under AOA the base level trigger when market access opportunities for a product are less than or equal to 10 per cent is a. b. c. d.

110% 105% 130% 125%

Q18. Under the Special Safeguard Provision under AOA the maximum additional duty which can be imposed relating to the existing market access opportunity is A. 25% of the level of the ordinary customs duty in effect in the year in which the action is taken. B. 15% of the level of the ordinary customs duty in effect in the year in which the action is taken. C. 33.33% of the level of the ordinary customs duty in effect in the year in which the action is taken. D. 10% of the level of the ordinary customs duty in effect in the year in which the action is taken.

Q19. Under the Special Safeguard Provision under AOA, if the import price of product X on c.i.f basis is 95% of the trigger price/ reference price the additional duty which may be imposed is a. additional duty shall equal 30 per cent of the amount of difference b. Nil c. additional duty shall equal 20 per cent of the amount of difference d. additional duty shall equal 50 per cent of the amount of difference Q20. In the question above the trigger price /reference price is a. equal to the average 1986 to 1988 reference price. b. equal to the average 1995 reference price. c. equal to the average world price in that year for that product Q21 Total production of wheat in X country is 100 crores in year 2021, the AMS Non Exempt Wheat Specific Support is calculated to be 2 crores. Will X country be required to include it in Current Total AMS and consequently required to reduce a. No b. Yes c. Depends whether it is developed country, developing or least developing Q22.

a. True b. False in favour of agricultural producers are not subject to reduction commitments if they qualify under the criteria set out in

a. b. c. d.

Annex 2 Annex 1 Annex 3 Annex II

Q24. Sale or disposal for export by government agencies of non commercial stocks of agricultural products at a price lower than the comparable price charged for the like product to buyers in the domestic market is A. Is an export Subsidy B. Not subject to reduction commitments under AOA a. only A is correct b. only B is correct c . Both A and B is correct d Both A and B are false Q25 In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in a) Military capabilities b) transport costs c) relative availabilities of factors of production d) relative tastes

Q26 How may comparative advantage be described? a) Advantage due to the differences in the relative opportunity costs (costs in terms of other goods given up) of producing the same commodity among countries. b) To produce and consume all goods without trade. c) How the world actually works. d) Globalization, growing economic linkages among countries.

Q27 The theory of comparative cost advantage is given by a. David Ricardo b. Adam Smith c. F W Taussig d. Ohlin and Heckscher

Q28 According to this theory, the holdings of a country‟s treasure primarily in the form of gold constituted its wealth. a. Gold Theory b. Ricardo Theory c. Mercantilism d. Hecksher Theory

Q29 The Theory of Absolute Cost Advantage is given by a. David Ricardo b. Adam Smith c. F W Taylor d. Ohlin and Heckscher

Q30 The Theory of Relative Factor Endowments is given by a) David Ricardo b) Adam Smith c) c. F W Taussig d) Ohlin and Hecksher

Q31 According to Adam Smith, the trade between countries should happen _____. a) As per treaty obligations b) Under government regulation c) Using factors that are available d) Only when a country has an absolute advantage

Q32 The WTO was established to implement the final act of Uruguay Round agreement of …… a) MFA b) GATT c) Trade facilitation d) UNO

Q 33 WTO stands for a) World technology association b) World time organization c) World Trade Organization d) World tourism organization

Q34 a) customs union b) common market c) complete economic integration d) free trade area

Q35 In which of the following types of regional economic integration are internal tariffs eliminated along with member countries levying a common external tariff on goods being imported from nonmembers. a) customs union b) free trade area c) common market d) complete economic integration

Q36 SAPTA is a trade agreement by _________________ a) ASEAN Nations b) APEC Nations c) SAARC Nations d) EU Nations Q37 _________was established by a multilateral treaty of 23 countries in 1947.

A. WTO B. UN C. GATT D. NAFTA

Q39 a) Some nations prefer to produce one thing while others produce other things.

b) Resources are not equally distributed among all trading nations. c) Trade reduces opportunities to accumulate profits. d) Interest rates are identical in all trading nations

a) Consumer welfare, only if output of both products is increased b) Total output of both products, consumer welfare in both countries c) Total production of both products, but not consumer welfare in both countries d) Consumer welfare in both countries, but not toal production of both products.

Q41 A tariff is: A. A restriction on the number of export firms B. Limit on the amount of imported goods C. Tax on imports D. (b) and (c) of above

Q42 The most favoured nation (MFN) clause under the WTO regime is based on the principle of a) Non-discrimination between nations b) Discrimination between nations c) Differential treatment between locals and foreigners d) Uniform traffic across commodities

Q 43 Which of the following were the aims behind forming the World Trade Organization (WTO)?

1. 2. 3. 4.

Promotion of free trade and resource flows across countries Protection of intellectual property rights Disputes Resolution among member nations Promotion of trade between the former East Bloc countries and the Western world

Select the correct answer using the codes given below :

a) 1, 2, 3, and 4 b) 1, 2, and 4 c) 2 and 3 d) 1 and 4

Q 44 Which of the following statements is not true?

a) The World Trade Organization (WTO) requires member nations to give national treatment to international goods. b) The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO) in 1995. c) The most favoured nation principle under GATT provided that preferential trade to one country should be extended to other countries. d) The WTO has been able to cover in its agreements the direct taxation policies of member nations.

Q45 Which of the following categories of agricultural subsidies are allowed under WTO?

a) Green box b) Blue box c) Red box d) Amber box

Q46 Match List I with List II and select the correct answer using the codes given below the lists:

List I

List II

1. WTO (A) Provides loans to address shortterm balance of payment problems 2. IDA body

(B) Multilateral trade negotiation

3. IMF

(C) Sanction of soft loans

4. IBRD (D) Facilitating lending and borrowing for reconstruction and development

a) 1-B, 2-C, 3-D, 4-A b) 1-B, 2-C, 3-A, 4-D c) 1-C, 2-B, 3-D, 4-A d) 1-C, 2-B, 3-A, 4-D

Q47 Where is the headquarters of the WTO located? (a) Austria (b) Geneva (c) New York (d) Washington DC

Q48 Along with the World Bank and __________________, WTO is the third economic pillar of worldwide dimensions. (a) International Economic Association (IEA) (b) International Monetary Funds (IMF) (c) International Development Bank (IDB) (d) International Funding Organization (IFO) Q 49 Among the following options, which one is not the objective of the WTO? (a) To protect environment (b) To improve the balance of payment situation of the member countries (c) To improve the standard of living of people of the member countries (d) To enlarge production and trade of goods

Q49 General Agreement on Tariffs and Trade (GATT) went into effect? (a) 1945 (b) 1948 (c) 1946

(d) 1947

Q50 GATT was originally signed by how many countries including the USA? (a) 22 (b) 20 (c) 23 (d) 25

Q51 The World Trade Organization (WTO) was established to implement the final act of __________round agreement of GATT.

A. Torquay B. Uruguay C. Geneva D. Tokyo

Q52_________is the highest hierarchical level in the organizational structure of WTO.

A. General Council B. Ministerial Conference C. Director General

D. Secretariat at WTO

53. a. b. c. d.

Who is the Director-General of WTO? Ngozi Okonjo-Iweala Arthur Dunkel Pascal Lamy Roberto Azevedo

54. Mercantilism ended in 1776 with the publication of “The Wealth of Nations” written by: a. David Ricardo b. Adam Smith c. Michael Porter d. None of the above 55. As per “mercantilism” a. the goal of nations in their economic relations was to amass gold or other treasure, so as to maximise national power. b. Maximizing national power was not distinguished from the wealth and power of sovereigns c. Goal was to sell more to strangers yearly than to consume of theirs. d. All of the above

a. Adam Smith questioned the leading theory of the time in “The Wealth of Nations” and offered a new trade theory called absolute advantage b. It focused on the ability of a country to produce a good more efficiently than another nation c. Reasoned that trade between countries shouldn‟t be regulated or restricted by government policy or intervention

d. All of the above 57. Porter‟s ……….has been the exemplary work of Michael Porter, who first published about this economic model in his book, “The Competitive Advantage of Nations” (1990) a. Diamond Model b. Comparative Advantage Theory c. Competitive Advantage Theory d. None of the above 58. a. b. c. d.

: Provisional countervailing duties Definitive countervailing duties Voluntary undertakings All of the above

59. are subject to challenge on the basis of evidence that they have caused specified adverse effects. As per the SCM Code these adverse effects include a. injury to the domestic industry of another member b. nullification and impairment of benefits accruing under GATT 1994 c. serious prejudice d. All of the above 60. The Agreement on Agriculture is built on these pillars: a. increased market access for agricultural products; b. commitments to reduce domestic subsidies on agricultural production; c. commitments to reduce export subsidies on agricultural products. d. All of the above

61.

a. a guaranteed minimum access level for all agricultural products; b. the „tariffication‟ of non-tariff barriers into tariff equivalents; c. the use of tariff rate quotas to ensure that the market access commitments are honoured. d. All of the above 62. The negotiations on trade and the environment were part of…………... The overarching objective is to enhance the mutual support of trade and environmental policies. a. the Doha Development Agenda launched at the Fourth WTO Ministerial Conference in Doha, Qatar, in November 2001 b. the Doha Development Agenda launched at the Fourth WTO Ministerial Conference in Doha, Qatar, in November 2002 c. the Doha Development Agenda launched at the Fourth WTO Ministerial Conference in Doha, Qatar, in November 2003 d. None of the above 63. a. b. c. d. 64.

The negotiations on trade and environment focus on: the relationship between the WTO rules and multilateral environmental agreements (MEAs) the collaboration between the WTO and MEA secretariats the elimination of tariffs and non-tariff barriers on environmental goods and services All of the above

Which article of GATT-1947 deals with MFN? a. Article 1 b. Article 11

c. Article 2 d. Article 4 65. a. b. c. d.

The scope of MFN obligations extend upto: Custom duties and charges Rules and formalities in connection with Importation and Exportation Both a and b None of the above

66. The appellate body in the Japan-Alcoholic Beverages case upheld the Panel‟s finding that vodka and shochu are „like‟ and also held that the interpretation of the term „like‟ should be examined on a case by case basis. This would allow a fair assessment in each case of the different elements that constitute a “similar” product. Some criteria were suggested for determining, on a case by case basis, whether a product is “similar”: a. The products‟ end uses in a given market; b. Consumers‟ tastes and habits, which change from country to country; c. The product‟s properties, nature and quality. d. All of the above 67. a. b. c. d.

When is the Ministerial Conference held? Once every two years Twice a year Once in four year Thrice a year

a. b. c. d.

How many annexes are there to a WTO Charter? 1 2 3 4

68.

69. Annex 1 contains multilateral agreements that are mandatory for all the members. Some of these are: a. GATT, GATS, TPRM b. GATT, GATS, TRIPS, DSU c. GATT, GATS, TRIPS, DSU, AOA d. GATT, GATS, TRIPS, AOA 70. The DSU process consists of a number of procedural stages: a. consultations, panel, appellate review, implementation, compliance and compensation/retaliation. b. consultations, panel, appellate review, compliance, implementation and compensation/retaliation. c. consultations, panel, implementation, compliance and compensation/retaliation. d. consultations, compliance, appellate review, implementation and compensation/retaliation. 71. WTO Dispute Settlement Procedure begins when a member requests consultations due to perceived „nullification or impairment‟ of benefits, usually resulting from an alleged violation of the substantive rules. a. It is an opportunity for the parties to discuss the dispute and negotiate a resolution of the matter. b. the consultations are confidential and without prejudice to the rights of any member in any further proceedings. c. Consultations may be either „multilateral‟: that are open to other members with a „substantial trade interest‟ or „bilateral‟ that are private i.e. only the complaining and responding Members may participate. d. All are true. 72. If the Consultation fails, the Complaining Party may request the Dispute Settlement body to set up a. A panel b. Advisory Body c. Appellate Body

d. None of the above 73. A panel would not be set up only by negative consensus meaning a. All the members including the Complaining party vote not to set it up. b. All the members excluding the Complaining party vote not to set it up. c. All the members excluding the Complaining party and the party complained against vote not to set it up. d. None of the above. 74. a.

b.

c.

d.

75.

Which of the following is true? Panels are composed on an ad hoc basis of three wellqualified individuals: generally academics, private lawyers or quite often, present or former members of government delegations to the WTO who are not parties to the dispute. Panels are composed on a permanent basis of three wellqualified individuals: generally academics, private lawyers or quite often, present or former members of government delegations to the WTO who are not parties to the dispute. Panels are composed on an ad hoc basis of three wellqualified individuals: generally academics, private lawyers or quite often, present or former members of government delegations to the WTO who may or may not be parties to the dispute. Panels are composed on an a permanent basis of three well-qualified individuals: generally academics, private lawyers or quite often, present or former members of government delegations to the WTO who may or may not be parties to the dispute.

The Appellate Body is composed on a. A permanent basis b. Ad hoc basis c. Comprises 7 members for a 4 year term

d. A and C 76. The only circumstance in which an appellate body report would not be adopted if: a. All the members including the winning party decide in consensus not to adopt it. b. All the members excluding the winning and the losing party decide not to adopt it c. All the members except the losing party decide not to adopt it d. None of the above 77. Article 21.1 of the DSU states that „prompt compliance‟ is „essential‟. Circumstances where immediate compliance may be „impracticable‟-allows the Member concerned a „reasonable period of time’ to comply. What are the ways of determining this rea...