Question 1

Why does NAFTA create a free trade area as opposed to a customs union or a common market? Explain the difference giving examples.

Accepted Answer

Under a customs union,in addition to eliminating internal barriers to trade,members agree to the establishment of common external tariffs.For example,the EU and Turkey initiated a customs union in an effort to boost two-way trade.In a common market,in addition to the removal of internal barriers to trade and the establishment of common external tariffs,free movement of factors of production such as labor and capital is allowed.
NAFTA helps in promoting economic growth through tariff elimination,expanded trade and investment,as well as no restrictions on labor and other factor movements within the three nations.The benefits of continental free trade will enable all three countries to meet the economic challenges of the decades to come.The gradual elimination of barriers to the flow of goods,services,and investment,coupled with strong protection of intellectual property rights will further benefit businessmen,workers,farmers,and consumers.The agreement also leaves the door open for discretionary protectionism.

Question 2

Arrange the following in order from lowest to highest level of economic integration.

Accepted Answer

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

Question 3

Bhutan has relied on a measure besides economic growth referred to as the Gross National Happiness (GNH).

Accepted Answer

A) True 
 B)False  True

Question 4

Chile decided to become only an associate member of Mercosur and hence participates in the free trade area aspect of Mercosur as well as the customs union.

Accepted Answer

A) True 
 B)False

Question 5

________ builds upon the elimination of internal tariff barriers,the establishment of common external barriers,and the free flow of factors.

Accepted Answer

A)  European Union 
B)  Economic union 
C)  Customs union 
D)  Free trade area 
E)  Common market 
A)  European Union 
B)  Economic union 
C)  Customs union 
D)  Free trade area 
E)  Common market

Question 6

The Middle East and North Africa are sometimes viewed as a regional entity referred to as:

Accepted Answer

A)  GCC. 
B)  AMU. 
C)  MENA. 
D)  ACC. 
E)  ECOWAS. 
A)  GCC. 
B)  AMU. 
C)  MENA. 
D)  ACC. 
E)  ECOWAS.

Question 7

The Secretariat for Central American Integration is headquartered in:

Accepted Answer

A)  El Salvador. 
B)  Honduras. 
C)  Guatemala City. 
D)  Nicaragua. 
E)  Costa Rica. 
A)  El Salvador. 
B)  Honduras. 
C)  Guatemala City. 
D)  Nicaragua. 
E)  Costa Rica.

Question 8

The World Trade Organization,which came into existence on January 1,1995,is the successor of another organization with the abbreviation:

Accepted Answer

A)  DSB. 
B)  GATT. 
C)  FTAA. 
D)  NAFTA. 
E)  ASEAN. 
A)  DSB. 
B)  GATT. 
C)  FTAA. 
D)  NAFTA. 
E)  ASEAN.

Question 9

Which member of the Central American Integration System has both the largest economy and the largest population?

Accepted Answer

A)  El Salvador 
B)  Honduras 
C)  Guatemala 
D)  Nicaragua 
E)  Costa Rica 
A)  El Salvador 
B)  Honduras 
C)  Guatemala 
D)  Nicaragua 
E)  Costa Rica

Question 10

It is mandatory for countries to notify the WTO when they enter into preferential trade agreements.

Accepted Answer

A) True 
 B)False

Question 11

Political and social instability in the Middle Eastern region can primarily be attributed to:

Accepted Answer

A)  desert conditions and lack of agricultural land. 
B)  cultural differences among nations. 
C)  a wide gap between rich and poor nations due to oil revenues. 
D)  lack of water purification facilities. 
E)  the "Arab Spring." 
A)  desert conditions and lack of agricultural land. 
B)  cultural differences among nations. 
C)  a wide gap between rich and poor nations due to oil revenues. 
D)  lack of water purification facilities. 
E)  the "Arab Spring."

Question 12

The new country joining the EU at the beginning of 2014 is:

Accepted Answer

A)  Slovakia. 
B)  Estonia. 
C)  Latvia. 
D)  Slovenia. 
E)  Cyprus. 
A)  Slovakia. 
B)  Estonia. 
C)  Latvia. 
D)  Slovenia. 
E)  Cyprus.

Question 13

With the global economic crisis as a backdrop,the first-ever Happiness Congress was held in:

Accepted Answer

A)  Sweden. 
B)  Austria. 
C)  Spain. 
D)  Italy. 
E)  Greece. 
A)  Sweden. 
B)  Austria. 
C)  Spain. 
D)  Italy. 
E)  Greece.

Question 14

For the past 40 years Bhutan,a kingdom of 700,000 people in the Himalaya mountains,has relied on the following measure:

Accepted Answer

A)  GNI. 
B)  GDP. 
C)  GNH. 
D)  GNP. 
E)  GTE. 
A)  GNI. 
B)  GDP. 
C)  GNH. 
D)  GNP. 
E)  GTE.

Question 15

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

Accepted Answer

A)  Argentina reduced the duties on consumer goods. 
B)  Argentina devalued its currency for exports and capital transactions. 
C)  Argentina added tariffs on imported wines. 
D)  Argentina adopted the U.S. dollar as official currency. 
E)  Argentina added tariffs on wine produced within the country. 
A)  Argentina reduced the duties on consumer goods. 
B)  Argentina devalued its currency for exports and capital transactions. 
C)  Argentina added tariffs on imported wines. 
D)  Argentina adopted the U.S. dollar as official currency. 
E)  Argentina added tariffs on wine produced within the country.

Question 16

The "Common Market of the South" in Latin America is used to describe:

Accepted Answer

A)  SICA. 
B)  Mercosur. 
C)  Andean Community. 
D)  CARICOM. 
E)  FTAA. 
A)  SICA. 
B)  Mercosur. 
C)  Andean Community. 
D)  CARICOM. 
E)  FTAA.

Question 17

Which form of regional cooperation agreement,when fully implemented,entails creation of a unified central bank,the use of a single currency,and common policies on agriculture,social services and welfare?

Accepted Answer

A)  Free trade area 
B)  Customs union 
C)  Common market 
D)  Economic union 
E)  Dispute settlement body 
A)  Free trade area 
B)  Customs union 
C)  Common market 
D)  Economic union 
E)  Dispute settlement body

Question 18

About one-fourth of the cut roses sold in the United States come from Ecuador.

Accepted Answer

A) True 
 B)False

Question 19

Although the ASEAN countries are geographically close,they have historically been divided in many respects.Elaborate on this statement and highlight the important economic development of member countries within ASEAN.How does Singapore represent a special case within the ASEAN nations?

Accepted Answer

The Association of Southeast Asian Natio

Question 20

Management strategic options pertaining to products that are facilitated by a single European market include:

Accepted Answer

A)  standardized packaging and labeling. 
B)  consolidated production. 
C)  shift from brand to benefit segmentation. 
D)  seeking marketing economies. 
E)  all of the above 
A)  standardized packaging and labeling. 
B)  consolidated production. 
C)  shift from brand to benefit segmentation. 
D)  seeking marketing economies. 
E)  all of the above

Why does NAFTA create a free trade area as opposed to a customs union or a common market? Explain the difference giving examples.

Arrange the following in order from lowest to highest level of economic integration.

Bhutan has relied on a measure besides economic growth referred to as the Gross National Happiness (GNH).

Chile decided to become only an associate member of Mercosur and hence participates in the free trade area aspect of Mercosur as well as the customs union.

________ builds upon the elimination of internal tariff barriers,the establishment of common external barriers,and the free flow of factors.

The Middle East and North Africa are sometimes viewed as a regional entity referred to as:

The Secretariat for Central American Integration is headquartered in:

The World Trade Organization,which came into existence on January 1,1995,is the successor of another organization with the abbreviation:

Which member of the Central American Integration System has both the largest economy and the largest population?

It is mandatory for countries to notify the WTO when they enter into preferential trade agreements.

Political and social instability in the Middle Eastern region can primarily be attributed to:

The new country joining the EU at the beginning of 2014 is:

With the global economic crisis as a backdrop,the first-ever Happiness Congress was held in:

For the past 40 years Bhutan,a kingdom of 700,000 people in the Himalaya mountains,has relied on the following measure:

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

The "Common Market of the South" in Latin America is used to describe:

Which form of regional cooperation agreement,when fully implemented,entails creation of a unified central bank,the use of a single currency,and common policies on agriculture,social services and welfare?

About one-fourth of the cut roses sold in the United States come from Ecuador.

Although the ASEAN countries are geographically close,they have historically been divided in many respects.Elaborate on this statement and highlight the important economic development of member countries within ASEAN.How does Singapore represent a special case within the ASEAN nations?

Management strategic options pertaining to products that are facilitated by a single European market include:

Introduction to Global Marketing

The Global Economic Environment

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing,Exporting,and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters

Exam 3: The Global Trade Environment

Why does NAFTA create a free trade area as opposed to a customs union or a common market? Explain the difference giving examples.

Arrange the following in order from lowest to highest level of economic integration.

Bhutan has relied on a measure besides economic growth referred to as the Gross National Happiness (GNH).

Chile decided to become only an associate member of Mercosur and hence participates in the free trade area aspect of Mercosur as well as the customs union.

________ builds upon the elimination of internal tariff barriers,the establishment of common external barriers,and the free flow of factors.

The Middle East and North Africa are sometimes viewed as a regional entity referred to as:

The Secretariat for Central American Integration is headquartered in:

The World Trade Organization,which came into existence on January 1,1995,is the successor of another organization with the abbreviation:

Which member of the Central American Integration System has both the largest economy and the largest population?

It is mandatory for countries to notify the WTO when they enter into preferential trade agreements.

Political and social instability in the Middle Eastern region can primarily be attributed to:

The new country joining the EU at the beginning of 2014 is:

With the global economic crisis as a backdrop,the first-ever Happiness Congress was held in:

For the past 40 years Bhutan,a kingdom of 700,000 people in the Himalaya mountains,has relied on the following measure:

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

The "Common Market of the South" in Latin America is used to describe:

Which form of regional cooperation agreement,when fully implemented,entails creation of a unified central bank,the use of a single currency,and common policies on agriculture,social services and welfare?

About one-fourth of the cut roses sold in the United States come from Ecuador.

Although the ASEAN countries are geographically close,they have historically been divided in many respects.Elaborate on this statement and highlight the important economic development of member countries within ASEAN.How does Singapore represent a special case within the ASEAN nations?

Management strategic options pertaining to products that are facilitated by a single European market include:

Introduction to Global Marketing

The Global Economic Environment

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing,Exporting,and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters