Task 2. Match the term in line A with their equivalent in line B

Task 3. Read the situations or questions (20 – 40) and choose the right answer.

20. What is the underlying characteristic of the WTO?

(a) It facilitates economic co-operation between different countries.

(b) It resolves disputes between economic trade blocks.

(c) It facilitates the development of less developed countries.

(d) It acts as an umbrella institution that regulates the agreements concluded at the Uruguay round, the organization’s ultimate goal being the promotion of free international trade.

21. Does the WTO come with its own institutional framework?

(a) No, the WTO depends on the relevant frameworks of national governments.

(b) No, the WTO provides certain institutional arrangements but only on an ad hoc basis.

(c) Yes, the WTO provides a certain institutional framework which changes depending on the nature of free trade agreements.

(d) Yes, the WTO provides a common institutional framework for the implementation of free trade agreements.

22. What are the three key ‘components’ of the WTO?

(a) A Senate, a Judiciary and a Directorate.

(b) A Trade Commission, a Dispute Settlement Body and a Council of Ministers.

(c) An Executive apparatus, a Legislative apparatus and an Enforcement apparatus.

(d) A Board of Governors, the Assembly of Member States and a Steering Committee.

23. Does the WTO apply its framework in exactly the same fashion throughout the world?

(a) Yes, the WTO applies its framework in exactly the same way throughout the World.

(b) Yes, the WTO applies its framework in exactly the same way around the world, unless it deals with trade blocks.

(c) No, the WTO makes allowance for regional variation.

(d) No, the WTO makes allowance for variation in the case of economically stronger countries.

24. What are the two main functions of the WTO?

(a) The promotion of free trade and economic liberalism.

(b) The administration of the WTO agreements and the resolution of international trade disputes.

(c) The promotion of world peace, economic stability and financial co-operation.

(d) The administration of the WTO’s institutional framework and the promotion of economic co-operation amongst its members.

25. Theoretically, what is the most significant organ of the WTO?

(a) The Committee on Trade and Development.

(b) The Council for Trade in Goods.

(c) The General Council.

(d) The Ministerial Conference.

26. Practically, what is the most significant organ of the WTO?

(a) The Committee on Trade and Development.

(b) The Council for Trade in Goods.

(c) The General Council.

(d) The Ministerial Conference.

27. Where is provision made with regard to the WTO’s institutional arrangements?

(a) In the WTO Agreement.

(b) In the GATT.

(c) In the UN Charter.

(d) In the WTO Agreement on Subsidies and Countervailing Measures.

28. With regard to the WTO, subsidies are covered in two separate international economic law agreements. Which are they?

(a) The GATT and the Agreement on Subsidies and Countervailing Measures.

(b) The Reform Treaty and the Treaty of Rome.

(c) The North American Free Trade Agreement and the Organization of American States Charter.

(d) The International Monetary Fund’s Articles of Agreement and the European Central Bank’s Statute.

29. What are countervailing measures?

(a) Measures which a State may initiate against another State when that other State has legally subsidized any of its domestic industries.

(b) Measures which a national government may initiate against another State when that other State has not subsidized any of its domestic industries.

(c) Measures which a State may initiate against another State when that other State has illegally subsidized any of its domestic industries.

(d) Measures which a national government may initiate against another State when that other State has not illegally subsidized any its domestic industries.

30. What is the role of the IMF?

(a) It controls the budgets of national governments.

(b) It acts as a forum for international economics.

(c) It observes world exchange rates, balance of payments and multilateral payments.

(d) It seeks to promote free international trade.

31. What is the IMF’s primary objective?

(a) The overall promotion of world trade.

(b) The fixation of the value of world currencies.

(c) The promotion of free trade.

(d) The promotion of its policies in certain countries around the world.

32. How does the IMF meet its primary objective?

(a) By promoting free international trade.

(b) By overseeing the balance of payments, acting as a forum of world negotiation and regulating world exchange rates.

(c) By acting as an arbitrator for the dispute settlement of world trade matters.

(d) By aligning its primary objective with the monetary objectives of national governments.

33. Why has the IMF been criticized in the past for being ineffective in the implementation of its policies and legal provision around the world?

(a) Because it did not manage to persuade States to achieve consensus in certain legal matters and because the implementation of its policies has been ab initio ineffective.

(b) Because different States seek to promote their national interests to the detriment of the IMF’s efforts.

(c) Because the IMF cannot promote its policies in the case of trade blocks.

(d) Because the IMF is not an independent international organization.

34. Why have lawyers (and economists) been accused in the past for compromising the role of the IMF?

(a) Because they have not paid attention to the calls of national governments for global deregulation of the world exchange rate markets.

(b) Because they have not paid attention to the calls from other international organizations for the further liberalization of the world exchange rate markets.

(c) Because they did little to escape legal technicality.

(d) Because they did little for co-operating with economists.

35. In world economic matters States do not always correspond to the calls of the IMF. Why is this?

(a) States have different agendas.

(b) States do not have the political will to follow the IMF’s calls.

(c) States oppose the IMF’s policies.

(d) States may not always have the same interests as the IMF.

36. There are two schools of thought in the interpretation of the IMF’s Articles of Agreement. Which one has prevailed?

(a) Realism

(b) Parochialism

(c) Legalism

(d) Interprevitism

37. How would you describe international monetary law?

(a) Rather detailed and for this reason exact.

(b) Rather minimal and for this reason abstract.

(c) Rather detailed and for this reason convoluted.

(d) Rather minimal and for this reason parochial.

38. Is the IMF’s policy on exchange rates of soft-law or hard law nature and why?

(a) Of soft-law nature, the reason being national sovereignty in currency matters.

(b) Of soft-law nature, the reason being clarity.

(c) Of hard-law nature, the reason being legal precision.

(d) Of hard-law nature the reason being global uniform standards.

39. Under Article IV of the IMF’s Articles of Agreement, should a sovereign State which is a member inform the Fund of its monetary policy decisions?

(a) No, IMF member States do not have to inform the Fund.

(b) No, IMF member States do not have to inform the Fund but should inform regional monetary organizations.

(c) Yes, IMF member States have to inform the Fund in relation to their monetary policy decisions.

(d) Yes, IMF member States have to inform the Fund in relation to their monetary policy decisions and in relation to all their national economic arrangements.

40. How would you classify the General Agreement on Tariffs and Trade?

(a) An international economic law agreement.

(b) An international environmental law agreement.

(c) An international economic law agreement which marginally touches on environmental law matters.

(d) An international environmental law agreement which marginally touches on economic law matters.