Homework Set #2 Spring 2013

Econ 335

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Institutions are 1) _______ A) the same thing as organizations. B) only relevant on international issues. C) a set of rules governing behavior, whether written or not. D) associations of individuals or groups. E) always embodied in a written set of rules.

2) Which of the following is an example of an institution whose primary concern is global stability? A) Mekong River Commission B) OPEC (Oil Producing and Exporting Countries) C) Asian Development Bank D) IMF (International Monetary Fund) E) NAFTA (North American Free Trade Agreement)

2) _______

3) Which of the following was NOT a creation of the Bretton Woods conference? A) IMF B) IBRD C) WTO D) World Bank E) None of the above.

3) _______

4) One of the most important and most visible roles of the IMF is to A) intercede by invitation when countries cannot pay their international debts. B) investigate countries that are charged with being unfair traders. C) hold regular negotiations over tariff reductions. D) provide loans to countries that need capital to develop their economies. E) serve as a forum for negotiating free trade agreements between groups of nations.

4) _______

5) The original mission of the World Bank was to A) provide capital to firms around the world. B) provide a safe place for people around the world to put their money. C) provide capital to underdeveloped countries. D) help countries manage their exchange rates. E) provide financial assistance for the reconstruction of war-damaged nations.

5) _______

6) The primary mission of the World Bank today is to A) provide financial assistance for the reconstruction of war-damaged nations. B) provide a safe place for people around the world to put their money. C) provide capital to firms around the world. D) provide capital to underdeveloped countries. E) help countries manage their exchange rates.

6) _______

7) Until the Uruguay Round of trade negotiations, which of the following sectors were NOT included in the rules for international trade? A) Steel and textiles B) Steel and agriculture C) Automobiles and agriculture D) Automobiles and electronics E) Agriculture and apparel

7) _______

8) An example of a nontariff barrier (NTB) is A) a tax on exports. B) a physical limit on imports. C) a tax on imports. D) Both A and B. E) Both A and C.

8) _______

9) Most favored nation (MFN) status means that a country treats another country A) the same as its other trading partners. B) worse than its other trading partners. C) better than its other trading partners. D) any way it chooses since it is the "most favored nation." E) None of the above.

9) _______

10) The Tokyo Round of the GATT negotiations was notable because it was the first round A) that included textiles and apparel. B) to limit the tariffs of the United States. C) to begin discussions of exchange rates. D) that included Japan. E) to begin establishing rules on subsidies.

10) ______