Exam 3: Regional Economic Integration

CAFTA is the most highly evolved example of regional integration in the world.

Of the following statements about ASEAN, which is NOT true?

_____ refers to the process of allowing efficient geographic distribution of business activities within and among countries.

Of the following, which is NOT a cost of regional integration?

Scenario - The Lynnette Company The Lynette Company was founded in 1982 by Solomon and Andrea Lynette. It is currently based in Jakarta, Indonesia and plans to remain in the region due to the potential for continued market growth. The company provides modern office equipment to customers throughout Southeast Asia and has watched a steady rise in need for its products. Last year, Lynette grossed over five million dollars in sales. It anticipates gross sales to more than double this year. The Lynette Company is pleased by the ample supply of workers from the local region available to help the company. The owners realize this area of the world has the potential to become an important global market. -All of the following EXCEPT which one represents a founding member of the regional bloc affecting Lynette?

With uncertainty surrounding the outcome of the Doha Round of trade negotiations, countries (large and small)are clamoring for bilateral or regional trade agreements to meet their specific agendas causing economists to be concerned about the prospects of creating a truly open global economic system that benefits all countries.

NAFTA is a comprehensive free-trade agreement among Canada, United States, and Mexico that addresses issues ranging from protection of workers' rights and the environment to phased reduction of tariff and non-tariff trade barriers, which were finally eliminated in 2009.

Remote regions with small local markets which Paul Collier calls the "bottom billion," are located in Central Asia; East, Central and West Africa; and the Pacific Islands.

________ refers to a union formed when members of a common market agree to implement common social programs (on education, employee benefits and retraining, health care, etc.)and coordinated macroeconomic policies (such as fiscal and monetary policies)that would lead to the creation of a single regional currency and a regional apex central bank.

________ is an area in which two or more countries agree to eliminate all barriers to trade such as tariffs, quotas, and non-tariff barriers like border restrictions, while at the same time keeping their own external tariffs (within WTO guidelines)against nonmembers.

If you are hired as an advisor for countries interested in regional integration, what would be your recommendation for the appropriate approach for these countries? Explain.

When the various regional integration blocs are analyzed from an economic geography perspective, they fall under three general categories - regional blocs close to major world markets, remote regions with large local markets, or _____.

Geographically, only about 25 percent of Turkey's land mass is in Europe.

A group of free trade member countries that have adopted a common external tariff with nonmember countries refers to ______.

Some argue that Asia may become the most important free trade region for this century. Do you agree? Explain.

The Treaty of Montevideo created _____.

According to the text, which of the following is NOT a major world market?

The World Bank's (2009)World Development Report does which of the following?

In 2003, ASEAN leaders agreed to establish an ASEAN Community based on three pillars: ASEAN Security Community; ASEAN Economic Community; and ASEAN Socio-Cultural Community.

The Maghreb Union consists of Algeria, Libya, Mauritania, Morocco, and _____.