Explain the three options for setting standards in trade rules
What will be an ideal response?
Harmonization of standards refers to the case where two or more countries share a common set
of standards in an area of concern, such as product safety, labor, environment, fair competition, and so on. Another option is mutual recognition of standards, in which countries keep their own product and process standards, but accept the standards of others as equally valid and sufficient. A third option is separate standards. In this case, countries keep their own standards and refuse to recognize those of anyone else.
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A market economy answers the question "what" goods will be produced by focusing on a. dollar votes
b. least-cost method of production. c. who can afford these goods. d. none of the above
Starting from short-run equilibrium, the following occurs: the money supply increases and labor productivity increases. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises. B) Real GDP rises and the price level necessarily rises. C) Real GDP rises and the effect on the price level cannot be determined. D) Real GDP falls and the effect on the price level cannot be determined. E) none of the above