Which of the following is a comprehensive multilateral trading system designed to achieve distortion-free international trade through the minimization of tariffs and removal of artificial barriers?

Which of the following is a comprehensive multilateral trading system designed to achieve distortion-free international trade through the minimization of tariffs and removal of artificial barriers? 
A. The International Agreement on Non-tariffs and Trade
B. The World Trade Organization Agreement
C. The General Agreement on Tariffs and Trade
D. The North American Free Trade Agreement
E. The European Free Trade Agreement

The General Agreement on Tariffs and Trade (GATT) is a comprehensive multilateral trading system designed to achieve distortion-free international trade by minimizing tariffs and removing artificial barriers.

The ____ facilitates international cooperation in opening markets and provides a forum for future trade negotiations and the settlement of international trade disputes. 
A. World Trade Organization
B. Generally Favored Nation Organization
C. National Trade Organization
D. International Cooperation Agreement
E. International Marketing Agreement

The World Trade Organization facilitates international cooperation in opening markets and provides a forum for future trade negotiations and the settlement of international trade disputes.

The _____ principle requires that World Trade Organization member states treat like goods coming from other World Trade Organization member states on an equal basis. 
A. Normal trade relations
B. The like treatment
C. The quantitative restrictions
D. The nondiscriminatory
E. The fairness

GATT established several general principles of trade law. Article I addresses the principle of most-favored-nation relations, a principle now known as normal trade relations. This principle requires that WTO member states treat like goods coming from other WTO member states on an equal basis.

Which of the following is a practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter's home market? 
A. Price cutting
B. Disposal
C. Dumping
D. Profit maximizing
E. Subsidizing

Dumping is the practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter's home market.

Which of the following is one of the three basic types of subsidies? 
A. Indirect subsidy
B. Actionable subsidy
C. International subsidy
D. Group subsidy
E. Quantitative subsidy

Actionable subsidies are illegal under Article VI of GATT. They include subsidies payable to domestic manufacturers either on the basis of export performance or for the use of domestic, rather than imported, input in the manufacturing process. Actionable subsidies are remedied through the imposition of countervailing duties, special tariffs imposed on subsidized goods to offset the benefit of the illegal subsidy.

The ____ allows recognized governments of WTO member states to bring an action alleging a violation of the GATT. 
A. Trade barrier agreement
B. Mediation/arbitration agreement
C. World dispute resolution agreement
D. Dispute settlement understanding
E. None of the above

The Dispute Settlement Understanding allows recognized governments of WTO member states to bring an action alleging a violation of GATT.