Question 1

What is the most important characteristic of regional trading blocs?

Accepted Answer

The most important characteristic is the extent of economic integration among the bloc's members.

Question 2

In decisions made by the Council of the European Union, every country has an equal vote.

Accepted Answer

A) True 
 B)False  False

Question 3

The Treaty for Europe is also known as the ________.

Accepted Answer

A)  Treaty of Rome 
B)  Maastricht Treaty 
C)  Treaty of Amsterdam 
D)  Paris Treaty 
A)  Treaty of Rome 
B)  Maastricht Treaty 
C)  Treaty of Amsterdam 
D)  Paris Treaty C

Question 4

Which GATT Round led to the creation of the WTO?

Accepted Answer

A)  Doha 
B)  Geneva 
C)  Uruguay 
D)  Kennedy 
A)  Doha 
B)  Geneva 
C)  Uruguay 
D)  Kennedy

Question 5

The EU's Common Agricultural Policy is a source of controversy because it favors Britain's farmers over French interests.

Accepted Answer

A) True 
 B)False

Question 6

The GATT is an agreement, not an organization.

Accepted Answer

A) True 
 B)False

Question 7

What is the difference between an economic union and a political union? Which one characterizes the EU? Why?

Accepted Answer

An economic union has all the characteri

Question 8

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

Accepted Answer

A) True 
 B)False

Question 9

In the last decade, there has been a decrease in the number of trading blocs.

Accepted Answer

A) True 
 B)False

Question 10

The European Free Trade Association has joined with the ________ to form the European Economic Area.

Accepted Answer

A)  Mercosur 
B)  European Union 
C)  Commonwealth of Independent States 
D)  Benelux nations 
A)  Mercosur 
B)  European Union 
C)  Commonwealth of Independent States 
D)  Benelux nations

Question 11

What do many human rights and environmental activists believe is missing in the WTO's objectives?

Accepted Answer

A)  protection for laborers 
B)  stronger union control 
C)  increased service trade 
D)  foreign agricultural subsidies 
A)  protection for laborers 
B)  stronger union control 
C)  increased service trade 
D)  foreign agricultural subsidies

Question 12

What is a common market? What is the primary benefit of the common market to European firms and European workers?

Accepted Answer

A common market has all the characterist

Question 13

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

Accepted Answer

A)  free trade area 
B)  customs union 
C)  common market 
D)  economic union 
A)  free trade area 
B)  customs union 
C)  common market 
D)  economic union

Question 14

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

Accepted Answer

A)  agricultural trade 
B)  tariff reductions 
C)  foreign exchange 
D)  service trade 
A)  agricultural trade 
B)  tariff reductions 
C)  foreign exchange 
D)  service trade

Question 15

A customs union ________.

Accepted Answer

A)  is complete political and economic integration of two or more countries 
B)  requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate economic policies 
C)  requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production 
D)  involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembers 
A)  is complete political and economic integration of two or more countries 
B)  requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate economic policies 
C)  requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production 
D)  involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembers

Question 16

What is the most-favored-nation principle? What are the two exceptions to the most-favored-nation principle? Why was MFN status changed to normal trade relations (NTR) status?

Accepted Answer

The most-favored-nation principle requir

Question 17

What functions are performed by the European Commission?

Accepted Answer

It proposes legislation to be considered

Question 18

The ________ is an agreement to create a customs union among the governments of Argentina, Brazil, Paraguay, and Uruguay.

Accepted Answer

A)  Mercosur Accord 
B)  ASEAN Free Trade Area 
C)  Andean Pact 
D)  Central America Common Market 
A)  Mercosur Accord 
B)  ASEAN Free Trade Area 
C)  Andean Pact 
D)  Central America Common Market

Question 19

Parson's Pet Products, an Australian firm, ships many products to Canada. In order to take advantage of low trade barriers in the U.S., Parson's Pet Products ships its items first to the U.S. and then reexports the goods to Canada. Parson's Pet Products is most likely using ________.

Accepted Answer

A)  trade circumvention 
B)  origination manipulation 
C)  trade deflection 
D)  external circumvention 
A)  trade circumvention 
B)  origination manipulation 
C)  trade deflection 
D)  external circumvention

Question 20

A(n) ________ eliminates trade barriers among member countries.

Accepted Answer

A)  free trade area 
B)  customs union 
C)  common market 
D)  economic union 
A)  free trade area 
B)  customs union 
C)  common market 
D)  economic union

What is the most important characteristic of regional trading blocs?

In decisions made by the Council of the European Union, every country has an equal vote.

The Treaty for Europe is also known as the ________.

Which GATT Round led to the creation of the WTO?

The EU's Common Agricultural Policy is a source of controversy because it favors Britain's farmers over French interests.

The GATT is an agreement, not an organization.

What is the difference between an economic union and a political union? Which one characterizes the EU? Why?

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

In the last decade, there has been a decrease in the number of trading blocs.

The European Free Trade Association has joined with the ________ to form the European Economic Area.

What do many human rights and environmental activists believe is missing in the WTO's objectives?

What is a common market? What is the primary benefit of the common market to European firms and European workers?

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

A customs union ________.

What is the most-favored-nation principle? What are the two exceptions to the most-favored-nation principle? Why was MFN status changed to normal trade relations (NTR) status?

What functions are performed by the European Commission?

The ________ is an agreement to create a customs union among the governments of Argentina, Brazil, Paraguay, and Uruguay.

Parson's Pet Products, an Australian firm, ships many products to Canada. In order to take advantage of low trade barriers in the U.S., Parson's Pet Products ships its items first to the U.S. and then reexports the goods to Canada. Parson's Pet Products is most likely using ________.

A(n) ________ eliminates trade barriers among member countries.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 10: International Cooperation Among Nations

What is the most important characteristic of regional trading blocs?

In decisions made by the Council of the European Union, every country has an equal vote.

The Treaty for Europe is also known as the ________.

Which GATT Round led to the creation of the WTO?

The EU's Common Agricultural Policy is a source of controversy because it favors Britain's farmers over French interests.

The GATT is an agreement, not an organization.

What is the difference between an economic union and a political union? Which one characterizes the EU? Why?

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

In the last decade, there has been a decrease in the number of trading blocs.

The European Free Trade Association has joined with the ________ to form the European Economic Area.

What do many human rights and environmental activists believe is missing in the WTO's objectives?

What is a common market? What is the primary benefit of the common market to European firms and European workers?

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

A customs union ________.

What is the most-favored-nation principle? What are the two exceptions to the most-favored-nation principle? Why was MFN status changed to normal trade relations (NTR) status?

What functions are performed by the European Commission?

The ________ is an agreement to create a customs union among the governments of Argentina, Brazil, Paraguay, and Uruguay.

Parson's Pet Products, an Australian firm, ships many products to Canada. In order to take advantage of low trade barriers in the U.S., Parson's Pet Products ships its items first to the U.S. and then reexports the goods to Canada. Parson's Pet Products is most likely using ________.

A(n) ________ eliminates trade barriers among member countries.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters