Which principle of the GATT/WTO do regional trade agreements violate?
a. the principle of first mover
b. the targeting principle
c. the most favored nation principle
d. the principle of comparative advantage
Ans: c. the most favored nation principle
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Suppose farmers get together and decide to be less productive. They want to do this so that they can shift the supply curve of farm products leftward and raise the price. What are the thoughts of a profit-maximizing farmer most likely to be once this agreement has been made?
A) If I break the agreement while everyone else holds to it, I can make myself better off. B) I am happy that we decided to be unproductive; I can't be unproductive by myself. C) I will definitely hold to the agreement. D) Everyone will break the agreement but me.
If businesses are pessimistic, they are ________.
A. less likely to borrow and invest B. more likely to borrow and invest C. moving down, along the investment demand curve D. moving up, along the investment demand curve