When a Nation That Belongs to WTO Imposes a Tariff

question 54

Multiple Choice

When a nation that belongs to WTO imposes a tariff or quota on imported products, it is supposed to do so within the guidelines established by GATT. If it does not do so within GATT's guidelines:

• A) the offending nation may suffer military retaliation by the other GATT members.
• B) the offending nation may be subject to a proceeding pursuant to the WTO's Dispute Settlement Understanding.
• C) the offending nation may end up in the World Court being sued for breach of its GATT contract.
• D) none of the above.

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Definitions:

Exponential Smoothing

A forecasting technique that applies decreasing weights to past observations as they recede in time.

Exponential Smoothing Model

A time series forecasting technique that applies weighting factors which decrease exponentially to past observations.

Mean Absolute Percentage Error

A measure used in statistics to assess the accuracy of a forecast or prediction, calculated as the average of absolute percentages of errors between predicted and observed values.

Smoothing Constant

A smoothing constant is a parameter in exponential smoothing used to control the level of smoothing applied to a time series.