PASSAGE 17 (Questions 1-5)
The great recession hasn't been great for free trade. As unemployment has risen throughout the world, governments have become more focused on protecting their own industries than on promoting international commerce. The US, though typically an enthusiastic supporter of open markets, included 'buy American' clauses in its stimulus package and propped up its flailing auto industry with handouts. But according to the Asian Development Bank (ADB), in the part of the world that was hit hardest by the trade crash -Asia - the number of Free-Trade Agreements (FTAs) signed by Asian countries has grown from just three in 2000 to 55 by the end of August 2009. 19 of those FTAs are among 16 Asian economies, a trend that could help the region become a powerful trading bloc. The drive to lower trade barriers has taken on fresh urgency amid the recession. As Asian manufacturing networks become more intertwined and as Asian consumers become wealthier regional commerce is becoming critical to future economic expansion. Intraregional trade last year made up 57% of total Asian trade, up from 37% in 1980.
In the past Asia produced for America and Europe; now Asia is producing for Asia. Of course, Asia is still dependent on sales to the West, But PEAs could reduce the region's exposure to the US by giving Asian companies preferential treatment in selling to Asian companies and consumers, These benefits could come with downsides, however. According to experts, FTAs create a 'non-level playing field If the most with advantages for Asian countries". dynamically growing part of the global economy gives the US restricted access, it will impact global balance. Companies in countries like the US left out of the trade pacts could face disadvantage when trying to tap fast-growing Asian markets. This, in turn, could have a negative impact on efforts to rebalance excessive debt in the US and excessive saving in Asia. Still, the benefits of greater regional integration could prove powerful enough to overcome the roadblocks. In Asia, the only thing everyone agrees upon is business. If it does, the world economy may never be the same.
[Allahabad Bank(PO), 2010]
What do the Asian Development Bank statistics indicate?
What has given rise to the large number of trade agreements between Asian countries?
Which of the following is not true in the context of the passage?
A. Political and economic rivalries between Asian countries are non-existent today.
B. Asian countries hold America responsible for the recession and have imposed economic sanctions against the US.
C. America has adopted a protectionist strategy after the recession.
Which of the following describes expert predictions about trade pacts between Asian countries?
Which of the following has / have not been (an) impact(s) of the recession?
A. Various trade agreements signed between developed and Asian countries have not been honoured.
B. The US government has restructured the Automobile Industry.
C. Regional conflicts in Asia have substantially reduced.
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