Trade

Question 1

What is meant by the term ‘protectionism’?

Answer 1

A policy by government to impose restrictions on trade in goods and services with other countries.

Question 2

What is a tariff?

Answer 2

a tax imposed on imports

Question 3

What are quotas?

Answer 3

government imposed limits on the number of goods that can be imported into a country

Question 4

What is a subsidy?

Answer 4

financial assistance to a business by government to make it competitive or prevent collapse

Question 5

What are barriers to trade?

Answer 5

any regulation or policy that restricts international trade

Question 6

What is the difference between NAFTA and the EU?

Answer 6

• EU has shared economic policies
• EU has free movement across borders

Question 7

What are tariffs an example of?

Answer 7

protectionism

Question 8

What does SDT stand for?

Answer 8

special differential treatment

Question 9

Who offers SDTs? To whom?

Answer 9

WTO, lesser developed nations, that face significant barriers to trade

Question 10

Why might SDTs be needed?

Answer 10

protectionist policies after decolonialisation impact poorer countries

Question 11

How might the WTO implement SDTs?

Answer 11

• longer time periods for agreements
• safeguarding trade interests
• support to help countries develop capacity to trade

Question 12

What countries are a part of Mercosur?

Answer 12

Brazil, Paraguay, Venezuela, Argentina

Question 13

What countries are part of the Pacific Alliance?

Answer 13

Mexico, Colombia, Chile, Peru

Question 14

What is a trade bloc?

Answer 14

a group of countries that promote trade by reducing or eliminating potential barriers

Question 15

What is the aim of the belt and road initiative?

Answer 15

connect trade routes all over the world

Question 16

Give an example of china’s investment into Africa

Answer 16

Kenya –> received FDI to help develop railway infrastructure

Question 17

How could China’s investment in Africa cause unequal flows?

Answer 17

• create debt traps
• soft power
• investment into some countries may leave other behind
• Chinese workers

Question 18

How could China’s investment in Africa solve unequal flows?

Answer 18

• increase trade
• money went to energy project -> development

Question 19

What is free trade?

Answer 19

international trade without barriers

Question 20

Approximately how much has China spent on the BRI?

Answer 20

$1billion

Question 21

How could the BRI lead to recession?

Answer 21

• loans need to be paid back
• money might need to come from tax if not enough is earned
• if cant: accepts collateral, prevents ability to borrow internationally

Question 22

Give an example of a time the BRI was unsuccessful?

Answer 22

Myanmar
planned to force peasants off land
protests

Question 23

How many defects found by Uganda’s power generation company in a Chinese built power station?

Answer 23

over 500

Question 24

Who do China trade most with within the EU?

Answer 24

France and Germany
non-BRI members

Question 25

How much (approximately) did China invest in Kenya as part of the BRI?

Answer 25

$5bn