46. The concept of “trade diversion” occurs when:
a) Imports from one country are replaced by imports from another country
b) Imports decrease due to domestic production
c) Exports are diverted to new markets
d) Trade barriers are eliminated in regional trade agreements
47. Which of the following is an example of a trade dispute between countries?
a) Negotiating a free trade agreement
b) Implementing import quotas
c) Setting exchange rates
d) Filing a complaint with the WTO
48. The concept of “trade in services” includes which of the following sectors?
a) Agriculture and farming
b) Manufacturing and production
c) Banking and finance
d) Import and export of goods
49. The “Enabling Clause” of the WTO allows developing countries to:
a) Impose higher tariffs on imported goods
b) Receive preferential treatment in trade
c) Establish export subsidies
d) Restrict foreign investment
50. The concept of “trade balance” refers to the:
a) Difference between exports and imports of goods and services
b) Difference between government revenue and expenditure
c) Difference between foreign assets and liabilities
d) Difference between national income and consumption
