Trade Policy and Economic Relations MCQs USA

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1. Which U.S. President is associated with the signing of the North American Free Trade Agreement (NAFTA)? A) George H. W. Bush B) Bill Clinton C) George W. Bush D) Barack Obama Answer: B) Bill Clinton 2. The General Agreement on Tariffs and Trade (GATT) was replaced by which international organization? A) World Trade Organization (WTO) B) International Monetary Fund (IMF) C) World Bank D) United Nations Answer: A) World Trade Organization (WTO) 3. Which U.S. trade policy is aimed at reducing trade barriers and promoting free trade? A) Protectionism B) Mercantilism C) Free Trade D) Isolationism Answer: C) Free Trade 4. The Smoot-Hawley Tariff Act of 1930 is known for: A) Reducing tariffs on imported goods B) Increasing tariffs on imported goods C) Establishing the Federal Reserve D) Creating NAFTA Answer: B) Increasing tariffs on imported goods 5. Which trade agreement aims to create a free trade area between the United States, Canada, and Mexico? A) Trans-Pacific Partnership (TPP) B) North American Free Trade Agreement (NAFTA) C) Central American Free Trade Agreement (CAFTA) D) European Union (EU) Answer: B) North American Free Trade Agreement (NAFTA) 6. Which U.S. President negotiated the Trans-Pacific Partnership (TPP)? A) George W. Bush B) Barack Obama C) Donald Trump D) Joe Biden Answer: B) Barack Obama 7. The U.S. trade deficit occurs when: A) Imports exceed exports B) Exports exceed imports C) Trade agreements are not enforced D) Tariffs are reduced Answer: A) Imports exceed exports 8. The “Buy American” provisions in U.S. trade policy are aimed at: A) Promoting international trade B) Supporting domestic manufacturing C) Reducing government spending D) Increasing foreign investment Answer: B) Supporting domestic manufacturing 9. Which U.S. trade policy emphasizes imposing tariffs and quotas to protect domestic industries? A) Free Trade B) Protectionism C) Liberalization D) Globalization Answer: B) Protectionism 10. Which international agreement addresses the issue of intellectual property rights in trade? A) GATT B) TRIPS Agreement C) Paris Agreement D) Kyoto Protocol Answer: B) TRIPS Agreement 11. Which U.S. trade agreement was renegotiated and replaced by the United States-Mexico-Canada Agreement (USMCA)? A) Central American Free Trade Agreement (CAFTA) B) North American Free Trade Agreement (NAFTA) C) Trans-Pacific Partnership (TPP) D) South Korea-U.S. Free Trade Agreement Answer: B) North American Free Trade Agreement (NAFTA) 12. The concept of “most-favored-nation” (MFN) treatment in trade agreements means: A) A country must offer the same trade concessions to all WTO members B) A country must restrict imports from all trading partners C) A country must impose tariffs on all imports D) A country must provide subsidies to domestic industries Answer: A) A country must offer the same trade concessions to all WTO members 13. Which U.S. law regulates foreign investments in the United States for national security reasons? A) Foreign Corrupt Practices Act (FCPA) B) Committee on Foreign Investment in the United States (CFIUS) C) Export Administration Act D) International Trade Commission Act Answer: B) Committee on Foreign Investment in the United States (CFIUS) 14. The U.S. Trade Representative (USTR) is responsible for: A) Overseeing domestic trade policies only B) Negotiating and enforcing trade agreements C) Setting monetary policy D) Regulating financial markets Answer: B) Negotiating and enforcing trade agreements 15. The Trade Adjustment Assistance (TAA) program provides: A) Trade-related training and support for displaced workers B) Export subsidies for domestic businesses C) Tax incentives for foreign investments D) Free trade agreements with developing countries Answer: A) Trade-related training and support for displaced workers 16. Which U.S. trade agreement focuses on improving economic relations with countries in the Asia-Pacific region? A) North American Free Trade Agreement (NAFTA) B) Trans-Pacific Partnership (TPP) C) South Korea-U.S. Free Trade Agreement D) Central American Free Trade Agreement (CAFTA) Answer: B) Trans-Pacific Partnership (TPP) 17. The United States’ involvement in the World Trade Organization (WTO) includes: A) Setting global trade policies B) Enforcing international labor standards C) Participating in dispute resolution and trade negotiations D) Managing global environmental agreements Answer: C) Participating in dispute resolution and trade negotiations 18. Which U.S. law allows for the imposition of tariffs on imports to protect domestic industries from unfair competition? A) Trade Expansion Act B) Smoot-Hawley Tariff Act C) Trade Act of 1974 D) Reciprocal Trade Agreements Act Answer: C) Trade Act of 1974 19. The principle of “reciprocity” in trade agreements refers to: A) Offering the same trade concessions in return for concessions from other countries B) Allowing unrestricted imports and exports C) Imposing tariffs to protect domestic industries D) Establishing trade barriers to prevent competition Answer: A) Offering the same trade concessions in return for concessions from other countries 20. Which trade agreement focuses on enhancing trade relations between the United States and countries in Central America? A) North American Free Trade Agreement (NAFTA) B) Central American Free Trade Agreement (CAFTA) C) Trans-Pacific Partnership (TPP) D) South Korea-U.S. Free Trade Agreement Answer: B) Central American Free Trade Agreement (CAFTA) 21. The U.S. policy of “unilateral sanctions” involves: A) Imposing trade restrictions without international support B) Engaging in multilateral trade agreements C) Supporting international trade organizations D) Reducing trade barriers with multiple countries Answer: A) Imposing trade restrictions without international support 22. Which U.S. law established the principle of most-favored-nation (MFN) status for trading partners? A) Trade Act of 1974 B) Smoot-Hawley Tariff Act C) Reciprocal Trade Agreements Act D) Trade Expansion Act Answer: C) Reciprocal Trade Agreements Act 23. The U.S. economic policy known as “dollar diplomacy” aimed to: A) Promote economic and political stability through financial investments B) Restrict foreign investments in the U.S. C) Support international humanitarian aid D) Negotiate trade agreements to reduce tariffs Answer: A) Promote economic and political stability through financial investments 24. The “Special 301” provisions in U.S. trade law are designed to address: A) Intellectual property rights enforcement B) Environmental regulations C) Labor standards D) Tariff reductions Answer: A) Intellectual property rights enforcement 25. Which trade agreement involves the United States, Canada, and Mexico, focusing on labor, environmental, and trade issues? A) North American Free Trade Agreement (NAFTA) B) United States-Mexico-Canada Agreement (USMCA) C) Trans-Pacific Partnership (TPP) D) Central American Free Trade Agreement (CAFTA) Answer: B) United States-Mexico-Canada Agreement (USMCA) 26. Which U.S. trade policy aims to protect domestic industries from foreign competition by imposing tariffs and quotas? A) Free Trade B) Protectionism C) Liberalization D) Globalization Answer: B) Protectionism 27. The U.S. Trade and Development Agency (USTDA) focuses on: A) Promoting domestic trade policies B) Supporting economic development in emerging markets C) Enforcing international trade agreements D) Regulating international financial markets Answer: B) Supporting economic development in emerging markets 28. The “Section 301” provisions in U.S. trade law are used to: A) Investigate and address unfair trade practices by other countries B) Promote domestic manufacturing C) Reduce tariffs on imported goods D) Increase foreign aid Answer: A) Investigate and address unfair trade practices by other countries 29. Which U.S. law regulates the export of sensitive technologies and dual-use items for national security reasons? A) Export Administration Act B) Trade Act of 1974 C) Smoot-Hawley Tariff Act D) International Emergency Economic Powers Act Answer: A) Export Administration Act 30. The concept of “economic sanctions” in U.S. foreign policy involves: A) Restricting trade and financial transactions with a country to influence its behavior B) Promoting free trade agreements C) Supporting international investment initiatives D) Reducing domestic tariffs Answer: A) Restricting trade and financial transactions with a country to influence its behavior 31. Which U.S. law established the Trade Representative’s authority to negotiate trade agreements? A) Trade Expansion Act B) Trade Act of 1974 C) Smoot-Hawley Tariff Act D) Reciprocal Trade Agreements Act Answer: B) Trade Act of 1974 32. The “Trade Promotion Authority” (TPA) allows the U.S. President to: A) Negotiate trade agreements without Congressional approval B) Seek Congressional approval for specific trade agreements C) Impose tariffs on imported goods D) Establish trade barriers with foreign countries Answer: B) Seek Congressional approval for specific trade agreements 33. The concept of “globalization” in trade refers to: A) The increasing interdependence of economies and cultures worldwide B) The isolation of national economies C) The promotion of protectionist policies D) The establishment of trade barriers Answer: A) The increasing interdependence of economies and cultures worldwide 34. The U.S. policy of “free trade” is primarily aimed at: A) Reducing trade barriers and promoting economic cooperation B) Protecting domestic industries from foreign competition C) Imposing tariffs on imports D) Supporting international trade regulations Answer: A) Reducing trade barriers and promoting economic cooperation 35. The “Trade Adjustment Assistance” program is designed to help: A) Workers who lose jobs due to trade-related factors B) Companies expand their export markets C) Governments establish trade agreements D) International organizations monitor trade compliance Answer: A) Workers who lose jobs due to trade-related factors 36. Which international organization oversees global trade agreements and dispute resolution? A) International Monetary Fund (IMF) B) World Trade Organization (WTO) C) United Nations (UN) D) World Bank Answer: B) World Trade Organization (WTO) 37. The U.S. government can impose tariffs on imports based on which principle? A) Most-favored-nation (MFN) B) National security C) Economic efficiency D) Trade reciprocity Answer: B) National security 38. The North American Free Trade Agreement (NAFTA) was implemented in which year? A) 1991 B) 1994 C) 1997 D) 2000 Answer: B) 1994 39. Which U.S. trade policy seeks to create a level playing field for domestic and foreign producers? A) Free Trade B) Protectionism C) Fair Trade D) Isolationism Answer: C) Fair Trade 40. The U.S. Foreign Corrupt Practices Act (FCPA) addresses issues related to: A) Exporting sensitive technologies B) Bribery and corruption in international business C) Trade restrictions with specific countries D) Intellectual property rights Answer: B) Bribery and corruption in international business 41. The “Buy America” provisions primarily apply to: A) Federal government procurement contracts B) International trade agreements C) Export subsidies for domestic products D) Foreign investment regulations Answer: A) Federal government procurement contracts 42. Which U.S. law requires trade negotiations to consider labor and environmental standards? A) Trade Act of 1974 B) North American Free Trade Agreement (NAFTA) C) United States-Mexico-Canada Agreement (USMCA) D) Fair Labor Standards Act Answer: C) United States-Mexico-Canada Agreement (USMCA) 43. The U.S. trade deficit can be reduced by: A) Increasing exports or decreasing imports B) Increasing tariffs on all imports C) Eliminating free trade agreements D) Restricting foreign investments Answer: A) Increasing exports or decreasing imports 44. The principle of “national treatment” in trade agreements refers to: A) Treating foreign and domestic products equally B) Offering preferential treatment to domestic products C) Imposing tariffs on all imports D) Restricting trade with certain countries Answer: A) Treating foreign and domestic products equally 45. The World Trade Organization (WTO) was established in which year? A) 1986 B) 1994 C) 2001 D) 2005 Answer: B) 1994 46. The U.S. trade relationship with China has been characterized by: A) A trade surplus for the U.S. B) Increasing exports and decreasing imports C) A significant trade deficit for the U.S. D) Balanced trade Answer: C) A significant trade deficit for the U.S. 47. Which of the following is a primary goal of U.S. trade policy? A) Increasing tariffs on all imports B) Promoting economic growth and job creation C) Isolating the U.S. economy from global markets D) Restricting foreign investments Answer: B) Promoting economic growth and job creation 48. The Trade Policy Review Mechanism (TPRM) is a process used by the WTO to: A) Evaluate the trade policies of member countries B) Negotiate new trade agreements C) Monitor currency exchange rates D) Establish trade barriers Answer: A) Evaluate the trade policies of member countries 49. The U.S. trade policy of “dumping” refers to: A) Selling goods at prices lower than production costs in foreign markets B) Imposing tariffs on imported goods C) Increasing exports to balance trade deficits D) Providing subsidies to domestic industries Answer: A) Selling goods at prices lower than production costs in foreign markets 50. The concept of “trade diversion” occurs when: A) Trade flows are redirected due to new trade agreements B) Imports exceed exports C) Domestic industries are protected from foreign competition D) Trade barriers are reduced Answer: A) Trade flows are redirected due to new trade agreements

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