Exam 9: Regional Economic Integration

The European Union is the world's largest, and most advanced regional economic bloc.

Countries in free trade areas only import and export products and services within the regional economic bloc.

MERCOSUR (Scenario) Bravo Luggage Company is a Latin American firm based in Buenos Aires, Argentina. Bravo has seen a sharp increase in orders over the last few months and needs to increase the amount of material imported from other countries. Currently, the materials used to manufacture Bravo luggage come from suppliers in Paraguay. Bravo managers have been approached by suppliers from Mexico and China who are both offering very competitive prices on materials. -Which of the following statements best supports using a supplier from Paraguay over a supplier from Mexico or China?

MERCOSUR (Scenario) Bravo Luggage Company is a Latin American firm based in Buenos Aires, Argentina. Bravo has seen a sharp increase in orders over the last few months and needs to increase the amount of material imported from other countries. Currently, the materials used to manufacture Bravo luggage come from suppliers in Paraguay. Bravo managers have been approached by suppliers from Mexico and China who are both offering very competitive prices on materials. -Which of the following questions would be most important for Bravo managers to evaluate when determining which supplier to use?

Which of the following statements is true of the economic union?

The intended purpose of regional integration is to ________.

MERCOSUR (Scenario) Bravo Luggage Company is a Latin American firm based in Buenos Aires, Argentina. Bravo has seen a sharp increase in orders over the last few months and needs to increase the amount of material imported from other countries. Currently, the materials used to manufacture Bravo luggage come from suppliers in Paraguay. Bravo managers have been approached by suppliers from Mexico and China who are both offering very competitive prices on materials. -Which of the following should be considered when making the decision to use a MERCOSUR supplier or a non-MERCOSUR supplier?

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. -Which of the following best supports Sew-Right's decision to internationalize into Germany instead of Mexico?

Which of the following is an example of a customs union?

The more diverse the economies of the member countries, the more likely the economic bloc will succeed.

Describe four advantages of regional integration. Provide an example to illustrate each point.

Under NAFTA, Canadian companies enjoy more trade and investment relationships with U. S. firms than with Mexican firms because of language similarities between Canada and the U.S.

Which of the following economic blocs will most likely merge with MERCOSUR to encompass all of South America?

The ________ is the level of regional integration that remains an ideal and is yet to be achieved.

An exporter from Canada would face the same tariff if importing into either Argentina or Brazil.

Economic Bloc Creation (Scenario) Country A and Country B are considering joining together into an economic bloc. Country A and Country B are both low-wage countries. Country A and Country B are separated from each other by Country C, which already belongs to an economic bloc. Representatives from Country A and Country B are meeting to discuss the possibilities of an economic bloc, and interpreters for each representative are assisting with the meeting procedures. -Which of the following would most likely be the greatest obstacle to regional integration between Country A and Country B?

Which of the following is responsible for determining the admission of new member countries to the EU?

Which of the following helps foster economic integration on a global scale?

Explain how custom unions work. What is an example of a customs union? What are some of the difficulties faced by customs unions?

The level of integration of free trade areas is greater than that of customs unions.