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FSOT: 500 Test Prep Study Questions

Category - Economics

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A host country manufacturer seeks trade preference status with the U.S.; however, the Foreign Service Officer (FSO) is aware that the country is a known exploiter of child labor. The FSO should explain that pursuant to the Trade and Development Act:
  1. under no circumstances will the U.S. do business with the country
  2. the Generalized System of Preference now links beneficiary countries' commitment to eliminate the worst forms of child labor to receipt of trade benefits
  3. the country cannot obtain preference status until it proves that child labor has been eliminated by its political jurisdiction
  4. only certain types of child labor are acceptable in the countries to which the U.S. grants trade preference status
Explanation
Answer: B - The Generalized System of Preference now links beneficiary countries' commitment to eliminate the worst forms of child labor to receipt of trade benefits.
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