Final Exam paper HK1 2021-2022

lOMoARcPSD|69091439 QT.KT.001/BM01. For: WRITTEN EXAM FOREIGN TRADE UNIVERSITY School of Economics and International Business FINAL EXAM PAPER International Trade Policy TMAE301(GD2-HK1-2021).2 Phase 2 Semester 1 Academic year: 2021-2022 International Trade Full-time Class: TMAE301(GD2-HK1-2021).2 Date: 24/12/2021 Time: 9h30 _________________________ PAPER NO.:1 Duration: 60 minute (not include paper distribution time) Question I (4 Points): Choose the best answer for each question 1. Which is one of the fundamental principles of WTO: a. Encouraging fair trade by disciplining barriers b. Encouraging development and economic reform c. Non-discriminating between domestic and foreign goods, services or nationals once they have entered the market d. Encouraging transparency through requirements to disclose policies and practices and notify WTO of change 2. This statement is True or False? " GVCs suggest why even low value-added activities can have economic benefits for developing countries " a. True b. False 3. Comparative advantage from Ricardo is driven by? a. differences in the prices of inputs b. specialisation c. differences in labour productivity d. all answers are incorrect 4. The ad valorem tax on steel watch is 25% and the specific tariff is $0.20. If the combination tariff paid per watch is $1.00, what must be the import value of one watch? a. $32 b. $4.8 c. $3.2 d. $2.22 1 messages.downloaded_by lOMoARcPSD|69091439 5. Point out the criteria for ROO in EPA of Japan-Mexico: “A change to subheading 2009.50 from any other chapter, except from heading 07.02’’ a. CTH + ECT b. CC + ECT c. CTSH + ECT d. CC + SP 6. What is dumping in trade remedy? a. Products get financial contributions from the Government to export with lower price than production cost b. Products are exported with export price lower than the production cost c. Products are exported with export price lower than normal value d. The import increases sharply because of low export price e. No correct answer 7. A few exceptions are permitted for trade without discrimination in WTO include? a. For partners in a free trade agreement b. For extending better access to developing countries c. To protect morals, human and animal health and National Security d. To conduct unfairly trade activities e. All answers a,b,c are correct f. All answers a,b, c &d are correct 8. Which statement about the bound tariff is true? a. Bound tariffs are partner-specific (different commitment toward all WTO members) b. Published and administered by national customs authorities. c. Bound tariffs are set on a sector-by-sector basis and classified based on Harmonized System (HS). d. Maximum level of customs tariffs to which a WTO Member is committed toward other Members. 9. What is tariff quota? a. A two tiered tariff. A lower in-quota tariff is applied to the first Q units of imports and a higher over-quota tariff is applied to all subsequent imports b. Quantitative Limitation of the quantity of imports or exports having greater productivity in at least one product than another. c. A two tiered tariff. A 0% in-quota tariff is applied to the first Q units of imports and a higher over-quota tariff is applied to all subsequent imports d. Quantitative Limitation of the quantity of imports or exports that one country issue 10. What is the Effective rate of protection? nominal a. Tariff rate levied on a given product b. Nominal rate + tariffs on intermediate inputs c. Price of a good minus the costs of intermediate goods used to produce it (the value added contributions of labour and capital at a given stage of production d. None of the above 2 messages.downloaded_by lOMoARcPSD|69091439 11. Losses from trade barriers that result in a decline in economic efficiency are called: a. Countervailing losses. b. Consumer surplus losses. c. Deadweight losses. d. Producer surplus losses. e. None of the above 12. The tariff imposed by Japan on leather shoes exported from Viet Nam is 30% or 4,300 yen/pair, whichever is the greater. What is the custom tariff type in this case ? a. Mixed tariff b. Compound tariff c. Specific and Ad valorem tariff d. None of the above 13. Which are the following measures are NTMs? a. Sanitary and Phytosanitary Measure b. Price control measures, including additional taxes and fees c. Export related measures d. All answers are correct e. None of the above 14. A small country imposes a tariff on a good. As a result: I. Consumer surplus falls II. Domestic producer surplus rises III. Foreign producer surplus falls a. I only b. I and II only c. II and III only d. I and III only e. I, II and III 15. In Porter’s Diamond Framework, which demand condition can lead to competitive advantage of a nation? a. Low rate of growth of Home Demand b. Large Size of Home Demand c. Sophisticated and Demanding Buyers d. b and c e. a and b and c 16. A country has a regulation on Aflatoxin limits in nuts, this regulation is: a. TBT measure b. SPS measure c. Both TBT & SPS d. None of the above 3 messages.downloaded_by lOMoARcPSD|69091439 17. In EPA of Japan & Mexico, the rule of origin of Sports car - HS 870324 is ‘A change to subheading 8703.21 through 8703.90 from any other heading, provided there is a regional value content of not less than 65 percent’, what is ROO in brief? a. CSTH and RVC 65% b. CTH and RVC 65% c. CC and RVC 65% d. None of the above 18. Canada issues labeling requirement on a box of fish product, this is: a. TBT measure b. SPS measure c. Labeling measure d. None of the above 19. An anti-dumping duty of between 8.5 per cent and 36 per cent has been imposed on imports of biodiesel products from country A. This is which measure in NTM classification by UNTACD? a. Tariff measures b. Contingent Trade-protective Measures c. Measures affecting unfair competition d. None of the above 20. Purpose of the SPS measures include: a. to protect human or animal life from additives, contaminants, toxins or disease – causing organisms in foods, drink, feedstuffs b. to prevent creation of unnecessary technical regulations c. to protect consumer & animal health from any exotic diseases d. None of the above Question II (2 points): Explain reasons why Vietnam should open the market and join international trade? (Combine trade theory and real cases for the analysis and explaination) Question III (4 points): Company A want to export Sport footwear (Hscode 640411), please advise what is the most potential market for the good and why? And from the target market, please show the market access conditions for the good. -----End of test---Note: - This paper contains 2 questions. - Open Book - Invigilators will not provide explanation EXAM PAPER APPROVAL further 4 messages.downloaded_by