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Business English Exercises
 

Trade Multilateralism

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Home > Teaching Business English > Business English Lessons, Advanced Level # 115
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Multilateral trade agreements serve the interests of today's global production system in a way that the alternative — a fragmented system of bilateral agreements — does not.

Correct answer: (d) fragmented

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Victor K. Fung gives his point of view as a businessman on what is at stake and why WTO negotiators have an interest in finding common ground.

Correct answer: (a) ground

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Global rules ease global production.

Correct answer: (b) ease

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In the old days, manufacturing would be done "in-house", but manufacturing carries a completely different meaning today: products are no longer made under one roof.

Correct answer: (c) under one roof

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Increasingly, production is dispersed across different factories in different countries — it is becoming globalized.

Correct answer: (d) dispersed

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Information technology and logistics help dissect the value-added process into component parts, with factories, locations and countries assigned for each stage according to their competitive advantage.

Correct answer: (b) component

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Over the past several years, we have seen discord in Seattle and Cancn, with what appears to be a widening divergence of views between developed and developing countries, and a rise in bilateral trade agreements.

Correct answer: (c) discord

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Bilateralism distorts the flow of goods: it throws up barriers, creates friction, reduces flexibility, raises prices and hinders companies' ability to bring new countries into the global production system. throws up breaks down bowls over stands on

Correct answer: (d) throws up

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Of particular concern are 'rules of origin', which define where a product is made and determine what kind of market access it will have.

Correct answer: (a) access

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With each new bilateral agreement, considerations relating to rules of origin multiply and become more complex in the phenomenon trade experts call 'the spaghetti bowl effect'.

Correct answer: (c) phenomenon

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Meaning of fragmentary and fragmented?, Expression: to find common ground, How do I know if my answer is correct or not?

 

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