Question

1. Regulations governing conditions under which products are eligible for trading preferences under trade agreements are called:

Select one:

a. rules of origin.

b. rules of multilateralism.

c. GATT rules.

d. GATS rules.

2. A regional trade agreement negotiated and agreed to years ago that has since fallen into a state of nonenforcement is known as a "kaleidoscopic" agreement.

Select one:

a. TRUE

b. FALSE

3.

A balance of payments surplus corresponds to a negative official settlements account balance.

Select one:

a. TRUE

b. FALSE

4.

In spite of the financial crises of the mid-1990s through the early 2000s, capital flows to emerging economies continued to grow at impressive rates.

Select one:

a. TRUE

b. FALSE

Answer 1

1.

A.

It is the requirement named as rule of the origin regulation to meet the criteria mentioned in the statement.

2.

False

It is not the case of kaleidoscopic agreement.

3.

True

Official settlement account holds reserve assets and this account is the part of balance of payment. If BOP is in surplus, then there is outflow of reserve assets to balance it and vice versa.

4.

True

It happened as these economies such as India, China and Brazil became attractive destinations for the foreign investors and capital inflows to these economies grew at a healthy rate.