International Trade - Extra

Which international institution took over from the institutional roles of the General Agreement on Tariffs and Trade?

The World Trade Organization

Which of these is not a function of the World Trade Organization?

collecting tariff revenue for member countries

Which previous trade agreement was the basis for the Canada US Mexico Trade Agreement (CUSMA)?

The North American Free Trade Agreement (NAFTA)

Which of the following was a motive for the United States for the negotiations for the Canada US Mexico Trade Agreement (CUSMA)?

To strengthen the rule of origin requirements in order to protect the US automobile manufacturing industry and to limit the ability of Canada and the US to produce automobiles for sale in the United States

In response to the changing global trade environment and the tariffs imposed by the United States, Canada has pursued which policy over last 5–10 years?

Diversification of trading and foreign investment partners

The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) requires which of the following?

Canada and the EU members to remove all tariffs and quotas on trade in goods by 2026 and Canada and the EU members to remove all tariffs and quotas on trade in services by 2026

According to Global Affairs Canada, as of 2026, how many free trade agreements does Canada currently have in force?

Fifteen bilateral agreements involving 51 countries

Which of the following statements about the Government of Canada’s international trade policy is correct?

In 2018, the Government of Canada set a target to increase overseas (non-U.S.) exports by 50% by 2025

According to Global Affairs Canada, Canada

Canada is on track to meet its diversification target

Which of the following is a benefit to global (i.e., all countries) trade agreements?

They can avoid concerns about rules of origin when setting and collecting tariffs, they can foster a common sense of purpose for expanding global trade, and they can allow developing countries access to larger markets

Which of the following is a cost to bilateral or regional multilateral trade agreements?

They can undermine the principle of most favoured nation and weaken global trade agreements

In international trade, what does dumping mean?

Selling exports into a market at below the cost of production or the cost in the home market

What is meant by infant industry protection?

Tariffs used to protect a new industry, such as automobile production, in order for it to develop into a globally competitive industry

Suppose a government argues for protection (e.g., tariffs) for a domestic industry to create jobs. Which of the following is an appropriate consideration when assessing the merits of the policy?

All of the above

Lower wages in foreign countries means Canada must impose restrictive trade policies in order to protect domestic workers.

Neither true nor false. Although it might sound plausible, it provides no context nor any justification for what is likely a costly policy for both Canada and other trading nations that would benefit from international trade