Question 1
Which of the following best states the difference between free trade and fair trade, as explained in the passage?
A. Free trade requires no trade tariffs whatsoever, whereas fair trade assumes multilateral agreement on tariffs for goods of equal worth.
“…assumes multilateral agreement on tariffs for goods of equal worth” not mentioned anywhere. B. Free trade is based on the unrestricted movement of goods across all national boundaries, whereas fair trade is based on a nation's restriction of commerce with each nation that erects trade barriers to the first nation's exports.
This difference is stated in the third paragraph C. The trade policies of countries like Arboria are based on the principles of free trade, whereas the trade policies of other types of world economies are based on fair trade.
Not mentioned anywhere D. Free-trade nations negotiate individual trade agreements with each of their trading partners, whereas fair-trade nations conduct multilateral trade negotiations.
Such a comparison has not mentioned anywhere E. Free trade assumes a constant level of global commerce, whereas fair trade promotes a steady expansion of international trade.
Not mentioned anywhere Question 2
It can be inferred that the author of the passage would most likely agree with which of the following statements about multilateral trade negotiations?
A. They are the most effective way to resolve trade problems.
The exact opposite of what can be inferred B. They are most effective in dealing with fair-trade issues between nations.
Cannot infer this C. They have only recently begun to make an impact on world trade.
Nothing in the passage to help us infer this D. Arborian reliance on multilateral trade negotiations, while appropriate in the past, is inadequate for today's global
marketplace.
We can infer this from this statement: “Forging a multilateral trade policy consensus among so many diverse economic systems has become virtually impossible” and the statement that leads to this statement. E. The principles of multilateral trade negotiations are incompatible with current Arborian foreign trade policy.
We cannot infer anything about the principles of multilateral trade negotiations Question 3
Which of the following statements best summarizes the author's opinion of “free traders” and “fair traders”?
A. The free and the fair traders' continuing debate provides a healthy and effective forum for examining Arborian trade policy.
This is not the author’s opinion B. The proponents of fair trade are essentially correct, while those who advocate free trade are not.
The author feels that both the positions are wrong. C. The proponents of free trade are better able to deal with current economic problems than are the fair traders.
No such comparison has been made. D. Neither the free nor the fair traders can come up with a workable trade policy because neither takes multilateral negotiations into account.
The passage says that both sides say that multilateral negotiations are the most effective way to resolve pressing trade issues E. The proponents of both free and fair trade have based their positions on out-of-date premises that do not reflect current economic conditions.
This line: But both sides base their positions on the same two outdated premises Question 4
The author mentions all of the following as characteristic of world trade in the mid1940s EXCEPT:
A. Arboria played a major role in the global
marketplace “…Arboria and Whorfland dominated the global economy” B. Whorfland played a major role in the global
marketplace “…Arboria and Whorfland dominated the global economy” C. Tariffs were the main obstacle to trade.
“…tariffs were the principal obstacle to trade” D. Fair-trade economies dominated international trade.
Not mentioned E. Arborian manufacturers were unsurpassed in most industries.
“..Arborian supremacy was uncontested in virtually all industries”
Question 5
In presenting the argument in the passage, the author uses all of the following EXCEPT:
A. statistical information about global commerce
“The 40-year-old GATT now covers less than 7 percent of global commerce.” B. definitions of terms concerning world trade
"The fair traders assert that access to Arborian markets should be restricted..."C. generalizations about Arboria's economic system
"Arboria faces the prospect of continuing economic loss until Arborian business and political leaders recognize the fundamental differences between Arborian and foreign economic systems"D. historical background of Arborian trade policy
Arboria is operating with an obsolete trade policy, an artifact of the mid-1940s when Arboria E. an example of an economic system whose principles differ from those of Arboria
Not mentioned Question 6
The author asserts which of the following about Arboria's trade policy?
A. A dramatic revision of Arboria's trade policy will be necessary unless Arborian manufacturers improve the quality of their goods.
No talk of improving the quality of goods B. The most crucial issue facing Arborian trade policymakers is that of free trade versus protectionism.
The problem is free trade and fair trade C. Arboria's current trade policy was essentially developed during the 1940s and has changed little since that time.
“Arboria is operating with an obsolete trade policy, an artifact of the mid1940s…economic circumstances have shifted radically. Arborian trade policy has not.” D. Arboria's trade policy is widely emulated throughout the world, to the extent that most international commerce is modeled on Arboria's principles.
The author does not assert this E. Arboria's trade policy has evolved gradually over the last eighty years, constantly readjusting itself in response to shifts in global commerce.
The author clearly states that Arborian trade policy has not shifted Question 7
The passage is primarily concerned with
A. illustrating the erosion of Arboria's position in the world
marketplace This is a small portion of what has been mentioned B. examining the differences between “free” and “fair” traders
This is a small portion of what has been mentioned C. advocating a reassessment of Arboria's trade policy
The passage talks about Arboria, its outdated policies that haven't changed overtime and how Arboria should re-evaluate and change their policies as the old principles are no longer valid D. criticizing the terms of the General Agreement on Tariffs and Trade (GATT)
This is a small portion of what has been mentioned E. comparing the different economic circumstances of Arboria's trade partners
This has not been done Question 8
The author implies that the main obstacle to a truly effective Arborian trade policy is the
A. weak position that Arboria currently holds in the global
marketplace That is not the obstacle B. inability of Arborian leaders to recognize that foreign economic systems are based on principles fundamentally different from their own
“Today the key trade issue is not free trade versus protectionism but diminishing trade versus expanding trade.” C. dominance of the supporters of free trade in the conflict between free-trade and fair-trade advocates
Not been mentioned D. apparent inability of Arborian industries to produce goods that are competitive in the world market
Not been mentioned E. protectionism that characterizes the foreign trade policies of so many of Arboria's trade partners
Not been mentioned- Nitha Jay
11 Nov 2020, 07:38
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