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D) GATT Question 7: Which multinational agreement / organization provides a mechanism for financing to its members for Latin American intraregional trade? a) ALADI Question 8: Which trade agreement has created the largest trading power in the world? 1 v01/20/99 p02/12/99 THE TRADE ENVIRONMENT 1-25 þ PROGRESS CHECK 1 (Continued) Question 9: Export credit agencies (ECAs) are established by: _____ a) commercial banks. _____ b) free trade agreements. _____ c) governments. _____ d) multilateral agencies.
The inspector’s office is open one day a week and is understaffed. This is an example of a(n): a) nontariff barrier. Question 4: One of the reasons tariffs are placed on imported goods is to: c) control imports. Question 5: The trade agreement which creates a common market for Argentina, Brazil, Paraguay, and Uruguay is: a) Mercosur. 1 v01/20/99 p02/12/99 THE TRADE ENVIRONMENT 1-23 þ PROGRESS CHECK 1 (Continued) Question 6: Which multinational agreement / organization has over 100 member countries that account for almost 90% of world trade?
_____ b) Pacto Andino. _____ c) GATT. _____ d) MERCOSUR. 1 1-26 THE TRADE ENVIRONMENT ANSWER KEY Question 9: Export credit agencies (ECAs) are established by: c) governments. Question 10: Identify two banks that are World Bank entities. a) International Bank for Reconstruction and Development d) International Development Association Question 11: The trade agreement that has had the least amount of success in achieving its goals, primarily due to an external debt crisis in the seventies and eighties is: b) Pacto Andino.