1. Rules of origin is necessary ............. A) so that the home country of an international capital flow is known B) to avoid tariff arbitrage C) to ensure each member of a custom union is applying the same tariff treatment to all non-members D) to avoid non-member of a Free Trade Area exporting to the member with the highest tariff and then redirecting the goods within the region to a lower tariff member. 2. Rank the following types of capital flow based on their riskiness to the host country. i) short-run debt flow ii) long-run equity flow iii) short-run equity flow A)ii, iii, i B) i, iii, ii C) iii, ii, i D) i, ii, iii 3. Members of a ......................................... may not have trade barriers among them but they apply different tariffs on goods of non-members. On the other hand, members of a ................................ apply the same tariffs on goods of non-members, A) free trade area ; common market B) free trade area ; custom union C) free trade area ; preferential trade area D) custom union ; free trade area
1. Rules of origin is necessary .............
A) so that the home country of an international capital flow is known
B) to avoid tariff arbitrage
C) to ensure each member of a custom union is applying the same tariff treatment to all non-members
D) to avoid non-member of a Free Trade Area exporting to the member with the highest tariff and then redirecting the goods within the region to a lower tariff member.
2. Rank the following types of capital flow based on their riskiness to the host country.
i) short-run debt flow
ii) long-run equity flow
iii) short-run equity flow
A)ii, iii, i
B) i, iii, ii
C) iii, ii, i
D) i, ii, iii
3. Members of a ......................................... may not have trade barriers among them but they apply different tariffs on goods of non-members. On the other hand, members of a ................................ apply the same tariffs on goods of non-members,
A) free trade area ; common market
B) free trade area ; custom union
C) free trade area ; preferential trade area
D) custom union ; free trade area
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