Question

11. How would we expect free international trade to affect agriculture in a developing country?

1)         Total agricultural production should decrease

2)         The land devoted to export crops should increase

3)         The land devoted to domestically-consumed crops should increase

4)         The number of small family farms should increase

5)         Environmental externalities of agriculture should decrease

12. Analysis of the carbon content of trade indicates that...

1)         The U.S. is the largest exporter of carbon-intensive products

2)         China is the largest importer of carbon-intensive products

3)         Carbon content is roughly equal in all trade flows

4)         The U.S. and Europe are the main importers of carbon-intensive products

5)         Most carbon-intensive trade originates in the Middle East

15. The NAFTA Commission on Environmental Cooperation (CEC)...

1)         Requires harmonization of environmental regulations

2)         Places tariffs on corn imports to protect the environment

3)         Penalizes corporations that harm the environment

4)         Produces reports on environmental issues but has few enforcement powers

5)         Has ordered a phase-out of environmentally damaging gasoline additives

Answer 1

1> 2)         The land devoted to export crops should increase

Reason

Due to free trade, agricultural production will shift to developing countries, thus it will produce more crops and export more of them.

2> 5)         Most carbon-intensive trade originates in the Middle East

Reason

It is because they are the major exporter of oil, thus carbon content originates from there.

3> 4)         Produces reports on environmental issues but has few enforcement powers

Reason

It has few enforcement powers, the main power lies with the nations whether they will enforce it or not.