International Trade Economics

Directions: The last sentence in the following passage has been deleted. Select the sentence, out of the available options, that best suits the end of the passage

At 12 : 01 a.m. on Jan. 1, ships laden with khaki slacks and cashmere sweaters will leave the port of Hong Kong. Their destination will be the Gap, Printemps, Wal-Mart and a slew of other retail stores, eventually ending up in closets from Paris to Peoria. These textile and apparel exports will be the first to head to America and Europe in a brand-new post-quota world, envisioned some 10 years ago when the World Trade Organization ordered that clothing import quotas be abolished by 2005. In theoretical terms, that means that China, Indonesia, Pakistan and other countries that produce textiles and apparel can ship as much as they want to the United States. If companies like the Limited and Banana Republic can buy specific clothing items from the cheapest and most efficient producer, no matter where that producer happens to reside, then American consumers - who have borne part of the cost of protecting the nation's textile industry - should see a sharp reduction in the price of clothing.

Where did most of the trading take place on the silk route?

Directions: Read the following passage and answer the question that follows.

Though first reserved for Chinese royalty, silk spread gradually through the Chinese culture both geographically and socially. From there, silk garments began to reach regions throughout Asia. Silk rapidly became a popular luxury fabric in the many areas accessible to Chinese merchants, because of its texture and luster.
Demand for this exotic fabric eventually created the lucrative trade route now known as the Silk Road, taking silk westward and bringing gold, silver and wools to the East. It was named the Silk Road after its most valuable commodity – silk, considered even more precious than gold! Clearly, a basic understanding of silk history would not be complete without understanding the crucial role played by the Silk Road in its global trade and introduction to the world outside of China.
The Silk Road was some 4,000 miles long stretching from Eastern China to the Mediterranean Sea. A caravan tract, the Silk Road followed the Great Wall of China to the north-west, bypassing the Takla Makan desert, climbing the Pamir mountain range, crossing modern-day Afghanistan and going on to the Levant, with a major trading market in Damascus. From there, the merchandise was shipped across the Mediterranean sea. Few people travelled the entire route; goods were handled mostly by a series of middlemen.

How were the goods handled during the trade on the silk route?

Directions: Read the following passage and answer the question that follows.

Though first reserved for Chinese royalty, silk spread gradually through the Chinese culture both geographically and socially. From there, silk garments began to reach regions throughout Asia. Silk rapidly became a popular luxury fabric in the many areas accessible to Chinese merchants, because of its texture and luster.
Demand for this exotic fabric eventually created the lucrative trade route now known as the Silk Road, taking silk westward and bringing gold, silver and wools to the East. It was named the Silk Road after its most valuable commodity – silk, considered even more precious than gold! Clearly, a basic understanding of silk history would not be complete without understanding the crucial role played by the Silk Road in its global trade and introduction to the world outside of China.
The Silk Road was some 4,000 miles long stretching from Eastern China to the Mediterranean Sea. A caravan tract, the Silk Road followed the Great Wall of China to the north-west, bypassing the Takla Makan desert, climbing the Pamir mountain range, crossing modern-day Afghanistan and going on to the Levant, with a major trading market in Damascus. From there, the merchandise was shipped across the Mediterranean sea. Few people travelled the entire route; goods were handled mostly by a series of middlemen.

Direction: Choose the option that best captures the essence of the text.

When China entered the World Trade Organization in 2001, it agreed, among other things, to begin liberalizing its rules for foreign financial companies. By 2006, it will have to give them full access. Rolling out financial products and services and helping China's banks with their transaction to a market economy, however, is easier said than done, according to BCG consultants and Wharton professors.