Question 1

Which of the following exemplifies an economic bloc?

Accepted Answer

A)  EU 
B)  WTO 
C)  GATT 
D)  UN 
A)  EU 
B)  WTO 
C)  GATT 
D)  UN A

Question 2

Which of the following statements is true about the success factors for regional integration?

Accepted Answer

A)  The more distinct the economies of the member countries, the more likely the economic bloc will succeed. 
B)  Countries should strictly hold onto their national autonomy in order to form a successful bloc. 
C)  Economic dynamism, a factor for successful regional integration, is often deficient in developed economies. 
D)  Similarity in political systems enhances prospects for a successful bloc. 
A)  The more distinct the economies of the member countries, the more likely the economic bloc will succeed. 
B)  Countries should strictly hold onto their national autonomy in order to form a successful bloc. 
C)  Economic dynamism, a factor for successful regional integration, is often deficient in developed economies. 
D)  Similarity in political systems enhances prospects for a successful bloc. D

Question 3

The intraregion exports of the EU are greater than its extraregion exports.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following economic blocs includes Switzerland as a member country?

Accepted Answer

A)  EU 
B)  EFTA 
C)  CAN 
D)  APEC 
A)  EU 
B)  EFTA 
C)  CAN 
D)  APEC

Question 5

Which of the following terms refers to two or more geographically connected nations in pursuit of free trade relations?

Accepted Answer

A)  grey market 
B)  trading diaspora 
C)  economic bloc 
D)  business strategic unit 
A)  grey market 
B)  trading diaspora 
C)  economic bloc 
D)  business strategic unit

Question 6

Firms often internationalize within an economic bloc in order to reduce exposure to competition.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the benefits of the worldwide trend toward regional economic integration, and briefly describe the five levels of economic integration.

Accepted Answer

One of the most remarkable features of c

Question 8

Which of the following is an example of a common market?

Accepted Answer

A)  EU 
B)  ASEAN 
C)  NAFTA 
D)  EFTA 
A)  EU 
B)  ASEAN 
C)  NAFTA 
D)  EFTA

Question 9

Members of ________ agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.

Accepted Answer

A)  free trade areas 
B)  customs unions 
C)  the NAFTA 
D)  the EFTA 
A)  free trade areas 
B)  customs unions 
C)  the NAFTA 
D)  the EFTA

Question 10

Describe customs unions and explain why MERCOSUR is an example of a customs union. How can customs unions potentially reduce global free trade?

Accepted Answer

The customs union is the second level of

Question 11

The level of integration of a political union is the highest.

Accepted Answer

A) True 
 B)False

Question 12

Widened access to other economic blocs is one of the benefits of regional integration.

Accepted Answer

A) True 
 B)False

Question 13

Sew-Right (Scenario)
A French sewing machine company, Sew-Right, has manufacturing facilities twenty miles outside of Paris. Since the formation of the EU, Sew-Right's managers have been considering internationalizing the Sew-Right company. Sew-Right's managers have also discussed the possibility of opening additional manufacturing facilities in Germany and Mexico. Sew-Right's managers and executives are discussing the various options at a conference, and hope to reach a decision soon.
-If Sew-Right decides to open a facility in Germany, which of the following will most likely occur first?

Accepted Answer

A)  formation of new board of directors 
B)  modernization of the French facility 
C)  rationalization of Sew-Right operations 
D)  consolidation of Sew-Right's global suppliers 
A)  formation of new board of directors 
B)  modernization of the French facility 
C)  rationalization of Sew-Right operations 
D)  consolidation of Sew-Right's global suppliers

Question 14

Which of the following is the most likely reason for the establishment of the European Community?

Accepted Answer

A)  broaden the power of communism within East Germany 
B)  create strict tariffs for trade and international business 
C)  combine forces against the powerful former Soviet Union 
D)  establish judicial procedures to handle trade violators 
A)  broaden the power of communism within East Germany 
B)  create strict tariffs for trade and international business 
C)  combine forces against the powerful former Soviet Union 
D)  establish judicial procedures to handle trade violators

Question 15

Since the formation of the EU, ________ has become the largest recipient of FDI from the United States.

Accepted Answer

A)  France 
B)  Russia 
C)  Britain 
D)  Italy 
A)  France 
B)  Russia 
C)  Britain 
D)  Italy

Question 16

Which of the following terms is used to refer to a nation in an economic bloc gradually ceasing to trade with non-member nations?

Accepted Answer

A)  trade diversion 
B)  trade creation 
C)  trade mandate 
D)  trading diaspora 
A)  trade diversion 
B)  trade creation 
C)  trade mandate 
D)  trading diaspora

Question 17

Some European countries have political union due to the presence of a common currency.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following nations is a member of MERCOSUR?

Accepted Answer

A)  Spain 
B)  Cuba 
C)  Mexico 
D)  Argentina 
A)  Spain 
B)  Cuba 
C)  Mexico 
D)  Argentina

Question 19

Explain how the creation of an economic bloc facilitates the rationalization of operations for international firms. Describe how the rationalization of operations can help firms achieve scale economies and enhanced productivity.

Accepted Answer

The creation of an economic bloc decreas

Question 20

CARICOM was formerly known as the Andean Pact.

Accepted Answer

A) True 
 B)False

Which of the following exemplifies an economic bloc?

Which of the following statements is true about the success factors for regional integration?

The intraregion exports of the EU are greater than its extraregion exports.

Which of the following economic blocs includes Switzerland as a member country?

Which of the following terms refers to two or more geographically connected nations in pursuit of free trade relations?

Firms often internationalize within an economic bloc in order to reduce exposure to competition.

Discuss the benefits of the worldwide trend toward regional economic integration, and briefly describe the five levels of economic integration.

Which of the following is an example of a common market?

Members of ________ agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.

Describe customs unions and explain why MERCOSUR is an example of a customs union. How can customs unions potentially reduce global free trade?

The level of integration of a political union is the highest.

Widened access to other economic blocs is one of the benefits of regional integration.

Which of the following is the most likely reason for the establishment of the European Community?

Since the formation of the EU, ________ has become the largest recipient of FDI from the United States.

Which of the following terms is used to refer to a nation in an economic bloc gradually ceasing to trade with non-member nations?

Some European countries have political union due to the presence of a common currency.

Which of the following nations is a member of MERCOSUR?

Explain how the creation of an economic bloc facilitates the rationalization of operations for international firms. Describe how the rationalization of operations can help firms achieve scale economies and enhanced productivity.

CARICOM was formerly known as the Andean Pact.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters

Exam 9: Regional Economic Integration

Which of the following exemplifies an economic bloc?

Which of the following statements is true about the success factors for regional integration?

The intraregion exports of the EU are greater than its extraregion exports.

Which of the following economic blocs includes Switzerland as a member country?

Which of the following terms refers to two or more geographically connected nations in pursuit of free trade relations?

Firms often internationalize within an economic bloc in order to reduce exposure to competition.

Discuss the benefits of the worldwide trend toward regional economic integration, and briefly describe the five levels of economic integration.

Which of the following is an example of a common market?

Members of ________ agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.

Describe customs unions and explain why MERCOSUR is an example of a customs union. How can customs unions potentially reduce global free trade?

The level of integration of a political union is the highest.

Widened access to other economic blocs is one of the benefits of regional integration.

Which of the following is the most likely reason for the establishment of the European Community?

Since the formation of the EU, ________ has become the largest recipient of FDI from the United States.

Which of the following terms is used to refer to a nation in an economic bloc gradually ceasing to trade with non-member nations?

Some European countries have political union due to the presence of a common currency.

Which of the following nations is a member of MERCOSUR?

Explain how the creation of an economic bloc facilitates the rationalization of operations for international firms. Describe how the rationalization of operations can help firms achieve scale economies and enhanced productivity.

CARICOM was formerly known as the Andean Pact.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters