When a Complaint Is Made to the World Trade Organization

question 62

Multiple Choice

When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:

• A) has the power to force the nation to change the restriction
• B) does not have the power to force the nation to change the restriction
• C) can fine the nation
• D) can block all trade with the nation
• E) none of the other choices are correct

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Definitions:

Net Capital Outflow

The investment gap where residents of a country engage in foreign asset acquisition versus foreign entities buying up local assets.

Net Exports

The value of a country's total exports minus its total imports, representing the balance of trade between a country and its trading partners.

Saving

The portion of income not spent on consumption, often put aside for future use or investment.

Net Capital Outflow

The financial divide between home nationals acquiring assets abroad and foreigners acquiring assets in the home country.