Question 1

Which of the following is directly elected by the populations of the member states and is primarily a consultative rather than legislative body?

Accepted Answer

A)  the European Parliament 
B)  the European Commission 
C)  the Council of the European Union 
D)  the Court of Justice 
A)  the European Parliament 
B)  the European Commission 
C)  the Council of the European Union 
D)  the Court of Justice A

Question 2

From least integrated to most integrated, the levels of economic integration are a:

Accepted Answer

A)  common market, a free trade area, an economic union, a customs union, and a political union. 
B)  free trade area, a customs union, a common market, an economic union, and a political union. 
C)  customs union, a free trade area, a common market, a political union, and an economic union. 
D)  common market, an economic union, a customs union, a free trade area, and a political union. 
A)  common market, a free trade area, an economic union, a customs union, and a political union. 
B)  free trade area, a customs union, a common market, an economic union, and a political union. 
C)  customs union, a free trade area, a common market, a political union, and an economic union. 
D)  common market, an economic union, a customs union, a free trade area, and a political union. B

Question 3

The European Community was established by the

Accepted Answer

A)  Treaty of Rome signed in 1957. 
B)  Maastricht Treaty signed in 1992. 
C)  Maastricht Treaty of 1994. 
D)  Single European Act of 1987. 
A)  Treaty of Rome signed in 1957. 
B)  Maastricht Treaty signed in 1992. 
C)  Maastricht Treaty of 1994. 
D)  Single European Act of 1987. A

Question 4

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

Accepted Answer

A)  efficiency gain 
B)  trade diversion 
C)  trade deficit 
D)  trade creation 
A)  efficiency gain 
B)  trade diversion 
C)  trade deficit 
D)  trade creation

Question 5

The establishment of the euro required participating countries to

Accepted Answer

A)  first convert their currency to U.S. dollars, then to euros. 
B)  give up national control over monetary policy. 
C)  create national banks at which citizens can convert their existing currency. 
D)  maintain their own currency in parallel to the euro. 
A)  first convert their currency to U.S. dollars, then to euros. 
B)  give up national control over monetary policy. 
C)  create national banks at which citizens can convert their existing currency. 
D)  maintain their own currency in parallel to the euro.

Question 6

The Council of the European Union is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Accepted Answer

A) True 
 B)False

Question 7

Mercosur originated as ________ between Brazil and Argentina in 1988.

Accepted Answer

A)  a common market 
B)  a free trade pact 
C)  a customs union 
D)  an economic union 
A)  a common market 
B)  a free trade pact 
C)  a customs union 
D)  an economic union

Question 8

According to Alexander Yeats

Accepted Answer

A)  the trade diversion effects of Mercosur outweigh its trade creation effects. 
B)  the fastest growing items in intra-Mercosur trade were capital-intensive goods produced efficiently in the member countries. 
C)  Mercosur countries will be able to compete globally once the group's external trade barriers come down. 
D)  the customs union is becoming more perfect over time. 
A)  the trade diversion effects of Mercosur outweigh its trade creation effects. 
B)  the fastest growing items in intra-Mercosur trade were capital-intensive goods produced efficiently in the member countries. 
C)  Mercosur countries will be able to compete globally once the group's external trade barriers come down. 
D)  the customs union is becoming more perfect over time.

Question 9

Which of the following was the outcome of the Treaty of Lisbon signed in 2007?

Accepted Answer

A)  It established the European Community. 
B)  It resulted in the adoption of the euro. 
C)  It changed the name of the European Community to the European Union. 
D)  It increased the power of the European Parliament. 
A)  It established the European Community. 
B)  It resulted in the adoption of the euro. 
C)  It changed the name of the European Community to the European Union. 
D)  It increased the power of the European Parliament.

Question 10

Which of the following is seen to be a consequence of the expansion of the EU from 15 nations to 28 nations?

Accepted Answer

A)  delays in decision-making processes 
B)  elimination of the sovereign debt crisis 
C)  euro becoming the most traded currency in the world 
D)  huge initial impact on the overall economic welfare 
A)  delays in decision-making processes 
B)  elimination of the sovereign debt crisis 
C)  euro becoming the most traded currency in the world 
D)  huge initial impact on the overall economic welfare

Question 11

Concerns about national sovereignty in the EU have been a major impediment to economic integration.

Accepted Answer

A) True 
 B)False

Question 12

How does the NAFTA seem to increase the international competitiveness of U.S. and Canadian firms?

Accepted Answer

A)  It gives them access to scarce natural resources hitherto unavailable. 
B)  It increases tariff barriers making the North American market less attractive to Asian companies. 
C)  It allows them to take advantage of lower labor costs in Mexico. 
D)  It gives them production bases in South American markets such as Brazil and Argentina. 
A)  It gives them access to scarce natural resources hitherto unavailable. 
B)  It increases tariff barriers making the North American market less attractive to Asian companies. 
C)  It allows them to take advantage of lower labor costs in Mexico. 
D)  It gives them production bases in South American markets such as Brazil and Argentina.

Question 13

A benefit to companies of economic integration is the opportunity to centralize their production and reduce costs.

Accepted Answer

A) True 
 B)False

Question 14

According to ________, the trade diversion effects of Mercosur outweigh its trade creation effects.

Accepted Answer

A)  Alexander Yeats 
B)  the majority of economists 
C)  Jacques Delors 
D)  the World Trade Organization 
A)  Alexander Yeats 
B)  the majority of economists 
C)  Jacques Delors 
D)  the World Trade Organization

Question 15

________ entails even closer economic integration and cooperation than a common market.

Accepted Answer

A)  A customs union 
B)  A free trade area 
C)  An economic union 
D)  A political union 
A)  A customs union 
B)  A free trade area 
C)  An economic union 
D)  A political union

Question 16

On average, studies indicate that NAFTA's overall impact has been

Accepted Answer

A)  large but negative. 
B)  large and positive. 
C)  small and negative. 
D)  small but positive. 
A)  large but negative. 
B)  large and positive. 
C)  small and negative. 
D)  small but positive.

Question 17

________ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Accepted Answer

A)  An economic union 
B)  A common market 
C)  A customs union 
D)  A full political union 
A)  An economic union 
B)  A common market 
C)  A customs union 
D)  A full political union

Question 18

Once barriers to trade and investment are removed, companies

Accepted Answer

A)  can realize cost economies by centralizing production in key locations regardless of culture differences. 
B)  can treat a group of integrated countries like the EU as a single market and produce standardized products for it. 
C)  no longer have to deal with competitive practices that formerly limited their ability to realize cost economies. 
D)  may still find it difficult to produce a standardized product for a single multiple-country market. 
A)  can realize cost economies by centralizing production in key locations regardless of culture differences. 
B)  can treat a group of integrated countries like the EU as a single market and produce standardized products for it. 
C)  no longer have to deal with competitive practices that formerly limited their ability to realize cost economies. 
D)  may still find it difficult to produce a standardized product for a single multiple-country market.

Question 19

How has the euro contributed to increasing competition in the European region?

Accepted Answer

A)  by increasing hedging costs 
B)  by increasing the cost of capital 
C)  by making price comparisons easy 
D)  by enabling a common monetary policy 
A)  by increasing hedging costs 
B)  by increasing the cost of capital 
C)  by making price comparisons easy 
D)  by enabling a common monetary policy

Question 20

What was the main objection raised by those in the United States and Canada who opposed the ratification of the NAFTA?

Accepted Answer

A)  job losses 
B)  balance-of-payment problems 
C)  threat of competition from Asian companies 
D)  threat of a loss of national sovereignty 
A)  job losses 
B)  balance-of-payment problems 
C)  threat of competition from Asian companies 
D)  threat of a loss of national sovereignty

Which of the following is directly elected by the populations of the member states and is primarily a consultative rather than legislative body?

From least integrated to most integrated, the levels of economic integration are a:

The European Community was established by the

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

The establishment of the euro required participating countries to

The Council of the European Union is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Mercosur originated as ________ between Brazil and Argentina in 1988.

According to Alexander Yeats

Which of the following was the outcome of the Treaty of Lisbon signed in 2007?

Which of the following is seen to be a consequence of the expansion of the EU from 15 nations to 28 nations?

Concerns about national sovereignty in the EU have been a major impediment to economic integration.

How does the NAFTA seem to increase the international competitiveness of U.S. and Canadian firms?

A benefit to companies of economic integration is the opportunity to centralize their production and reduce costs.

According to ________, the trade diversion effects of Mercosur outweigh its trade creation effects.

________ entails even closer economic integration and cooperation than a common market.

On average, studies indicate that NAFTA's overall impact has been

________ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Once barriers to trade and investment are removed, companies

How has the euro contributed to increasing competition in the European region?

What was the main objection raised by those in the United States and Canada who opposed the ratification of the NAFTA?

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

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Exam 9: Regional Economic Integration

Which of the following is directly elected by the populations of the member states and is primarily a consultative rather than legislative body?

From least integrated to most integrated, the levels of economic integration are a:

The European Community was established by the

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

The establishment of the euro required participating countries to

The Council of the European Union is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Mercosur originated as ________ between Brazil and Argentina in 1988.

According to Alexander Yeats

Which of the following was the outcome of the Treaty of Lisbon signed in 2007?

Which of the following is seen to be a consequence of the expansion of the EU from 15 nations to 28 nations?

Concerns about national sovereignty in the EU have been a major impediment to economic integration.

How does the NAFTA seem to increase the international competitiveness of U.S. and Canadian firms?

A benefit to companies of economic integration is the opportunity to centralize their production and reduce costs.

According to ________, the trade diversion effects of Mercosur outweigh its trade creation effects.

________ entails even closer economic integration and cooperation than a common market.

On average, studies indicate that NAFTA's overall impact has been

________ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Once barriers to trade and investment are removed, companies

How has the euro contributed to increasing competition in the European region?

What was the main objection raised by those in the United States and Canada who opposed the ratification of the NAFTA?

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters