Question

QUESTION 1

1. Under the Most Favored Nation trade standard, states must:

   	A.	Regulate all goods to the same standard regardless of nation of origin.
   	B.	Treat trade in good and trade in services the same.
   	C.	Extend any tariff concession made to one trading partner to all trading partners.
   	D.	All of the above.
   	E.	None of the above.

QUESTION 2

1. Which of the following does the Hackscher-Ohlin theory add to the classical labor theory of comparative advantage?

   	A.	Abundance of natural resources.
   	B.	Abundance of capital.
   	C.	Both of the above
   	D.	None of the above.

QUESTION 3

1. The GATT has stronger enforcement capacities than does the WTO.

   True

   False

QUESTION 4

1. Which of the following "failures" of the GATT was the WTO created to address?

   	A.	The GATT had no provisions restricting the use of non-tarrif barriers to trade to protect their domestic economies.
   	B.	Trade in agricultural products was largely untouched by GATT restrictions.
   	C.	GATT enforcement relied on all states, including the offender states, to agree to any enforcement measures.
   	D.	All of the above
   	E.	None of the above

QUESTION 5

1. The Strolper-Samuelson theory leads to the conclusion that free trade always benefits states.

   True

   False

Answer 1

1. All of the above.

Most favored nation trade standard follows all the things that are given in the options available in the question. It is basically a method by which the quality of trading is maintained between the states. So, Regulation of all goods to the same standard regardless of nation of origin is included.Treating trade in good and trade in services the same is the part of the scheme.and Extending any tariff concession made to one trading partner to all trading partners is also included.