Question

For the following questions your answer should be in the form of a jeopardy response. For example if I stated: The father of the eclectic theory. your response would be: “who is John Dunning.”

question 19

When more expensive goods sourced from inside a customs union replace the consumption of less expensive goods from outside the costumes unions.

20.A situation in which a higher tariff is triggered after imports reach a certain threshold.

21. This part of the balance payment provides a measure of short term inflows and outflows of wealth in a country during a period of time.

22. In addition to reciprocity, members of the WTO agree to give this status automatically to other members.

23.This restriction prevent transport companies from moving goods freely in a regional economic integration agreement.

writing down the word based on the described sentences above.

my answer is: 19.what is trade diversion 20.what is tariff-rate quota 21.what is current account 22.what is WTO most favored nation treatment 23.What is cabotage

(Just want to check is my answer right?)

Answer 1

All answers are correct.

19. What is Trade diversion - when trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union.

20. What is Tariff rate quota.

A tariff-rate quota (TRQ) is a two-tiered tariff regime that combinesimport quota and tariff. It allows a lower tariff rate on imports of a given product within a specified quantity and then a higher tariff rate if importa exceed that level.

21. What is current account.

The current account represents a country's net income over a period of time.

22. What is most favored nation

If a WTO member gives most favored nation treatment to one country, it must give the same treatment for all other WTO member countries.

23. What is Cabotage

Cabotage laws are formulated by all international countries to protect their own national ships and promote local development.