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FSOT: 500 Test Prep Study Questions - Question List

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76. In regard to the Most Favored Nation (MFN) principle that is a key provision of the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) trade law, what do GATT and the WTO say regarding the North American Free Trade Agreement (NAFTA), a regional trading agreement?
  1. NAFTA's terms are fully consistent with MFN
  2. NAFTA is permitted as part of a deal among certain countries allowing other free trade agreements
  3. NAFTA is allowed as an exception since it does not raise barriers against non-members
  4. NAFTA provides MFN to non-member countries
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77. The U.S. law that extended the longtime U.S. embargo against Cuba is the
  1. Helms-Burton Act
  2. McCarran Act
  3. National Security Act
  4. Voorhis Act
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78. Economist and philosopher Adam Smith's expression, "the invisible hand" refers to a theory or belief that:
  1. the greed of capitalists seeking wealth actually helps the poor in society
  2. the world economy is governed by a series of natural laws
  3. outside forces beyond human control influence the economy
  4. governments should not impose economic regulation
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79. The Leahy Amendment prohibits foreign assistance to which recipients?
  1. Foreign governments that provide aid to Cuba
  2. Governments that nationalize U.S. property without compensation
  3. Security forces guilty of gross human rights violations
  4. Governments that refuse to exempt U.S. personnel from the International Criminal Court
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80. Under the World Trade Organization and the laws of the U.S. and other countries, countervailing duties may be applied as a trade remedy when foreign:
  1. industries are subsidized by their governments to increase their productivity and competitiveness
  2. governments artificially change their exchange rate so that their goods become cheaper in other countries
  3. unions receive subsidies from their governments to lower labor costs
  4. exporting companies receive subsidies from their governments
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