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European Integration 2 (Fach) / Trade Policy (Lektion)

Chapter 12

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  • When it comes to trade in goods, trade policy is an exclusive competency of the EU. True or False? True
  • Since the EU is a customs union, any tariff change - including temporary changes such as dumping duties and quotas on Chinese clothes - must be decided at the EU level; Member States cannot set their own tariffs. True or False? True
  • About 2/3rds of EU27 imports come from the EU itself. True or False? True
  • Most of the EU's imports and exports consist of manufactured goods. A) True B) False True
  • The EU's exports and imports from North America are quite similar in composition (mainly manufactured goods) but its imports and exports from Africa are dissimilar with raw materials and food making up a much large share of EU imports from the region than EU exports to the region. A) True B) False True
  • The EU has extensive preferential trade arrangements with many nations who where former colonies of France, Belgium and the UK. A) True B) False True
  • The Commission has the right to negotiate tariffs with third nations, but when it comes to trade policies that affect other areas such as services and intellectual property rights: A) The allocation of competencies is negotiated between the Commission and Member States for each WTO negotiation. B) All EU trade decisions are jointly taken by the European Parliament and the Council on the basis of the ‘ordinary legislative procedure’. C) The European Parliament decides whether a specific area will be subject to QMV or unanimous voting. D) none of the above is true.  B) All EU trade decisions are jointly taken by the European Parliament and the Council on the basis of the ‘ordinary legislative procedure’.
  • The Commission imposes anti-dumping duties on the goods of nations that it accuses of: A) selling high-quality products at a price that is less than those charged by EU producers of the same goods B) selling low-quality products at too high a price C) selling goods to the EU that do not meet the high product standards of the US market. D) selling goods at a price that is below the cost of production, or below the price in the home nation. D) selling goods at a price that is below the cost of production, or below the price in the home nation.
  • The EU has extensive preferential trade arrangements with: A) Most of the nations that line the Mediterranean Sea. B) Most of the former Soviet republics C) Most of the poorest nations in the world. D) All of the above  D) All of the above
  • The trade relations that the EU now has with Turkey are best described as A) The EU grants unilateral preferences to Turkey. B) Participate in the Single Market via the European Economic Areas agreement or Bilateral Agreements. C) Set their own tariffs with respect to third nations, including anti-dumping duties. D) All of the above  D) All of the above
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  • The four West European nations not in the EU: A) Sign free trade agreements with every nation that the EU signs one with. B) Participate in the Single Market via the European Economic Areas agreement or Bilateral Agreements. C) Set their own tariffs with respect to third nations, including anti-dumping duties. D) All of the above  D) All of the above
  • The “Everything But Arms” policy: A) grants duty free treatment to the exports of Latin American nations. B) grants duty-free treatment to the exports of most of the poorest nations in the world. C) was instituted by the Constitutional Treaty. D) none of the above. B) grants duty-free treatment to the exports of most of the poorest nations in the world.
  • The major change introduced by the Lisbon on trade policy is that the European Council is now co-legislator on all basic EU trade legislation, A) True B) False False
  • The EU signs trade deals with third nations and these commit the third nations to doing various things such as cutting their tariffs against EU exports. The institution in the EU responsible for making sure that the third nations respect their obligations is ________________ The European Commission
  • The European Union is the second World’s biggest trader after the U.S. A) True B) False  B) False
  • The 2009 Lisbon Treaty substantially decreased the extent to which EU members have delegated power on trade issues to the EU and partially restored the sovereignty of Member States in terms of external trade policy. A) True B) False  B) False
  • The European Union accounts for almost …. of world trade. A) 25% B) 40% C) 50% D) 65% B) 40%
  • More than … of EU27 trade is realized among the EU15 since the ten new Member States are fairly small economically. A) 60% B) 70% C) 80% D) 90% D) 90%
  • Which of the following rationales for giving the EU supranational powers (exclusive competence) in the area of trade policy is not correct? A) More credibility in international trade negotiations B) Lowering of internal trade restrictions (tariff and non-tariff barriers) that leads to higher welfare C) Reducing distortions in the trade of agricultural goods D) Securing the competitiveness of the EU Member States vis-à-vis the rest of the world by acting jointly on the challenges of e.g. globalization and trade conflicts C) Reducing distortions in the trade of agricultural goods
  • EU’s two main two trading partners as regards imports are: A) Non-EU Europe B) North America C) Africa D) Latin America E) Asia F) Rest of the world  A) Non-EU Europe E) Asia
  • Describe the trade pattern of the EU Member States on imports towards the six areas mentioned in question 3 (Non-EU Europe, North America, Africa, Latin America, Asia and the rest of the world) by one of the following characteristics: A) Identical across EU Member States B) Almost identical across EU Member States C) Every Member State very different from other Member States D) Group of Member States different from group of other Member States D) Group of Member States different from group of other Member States

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