Question 1

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 resource 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 like Brazil and Argentina. 
A)  It gives them access to scarce natural resource 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 like Brazil and Argentina. C

Question 2

The lowering of barriers to trade and investment between countries is likely to lead to _____ throughout the EU.

Accepted Answer

A)  higher costs of borrowing 
B)  increase prices 
C)  increase in hedging costs 
D)  increased price competition 
A)  higher costs of borrowing 
B)  increase prices 
C)  increase in hedging costs 
D)  increased price competition D

Question 3

Discuss the opportunities arising from the creation of the EU for international businesses.

Accepted Answer

The creation of a single market through regional economic integration presents significant opportunities to companies. Countries within the EU, such as Italy and France, are now much more open to foreign competition. Companies should also see their costs drop as they do business in a single, large market as opposed to 27 national markets in the case of the EU or three national markets in the case of NAFTA. Production can be centralized in the EU location where the mix of factor costs and skills is optimal.

Question 4

Which is the most enduring free trade area in the world?

Accepted Answer

A)  Central America Free Trade Association (CAFT
A)  
B)  European Free Trade Association (EFT
A)  
C)  Association of Southeast Asian Nations (ASEAN) 
D)  North American Free Trade Association (NAFT
A)  
A)  Central America Free Trade Association (CAFT
A)  
B)  European Free Trade Association (EFT
A)  
C)  Association of Southeast Asian Nations (ASEAN) 
D)  North American Free Trade Association (NAFT
A)

Question 5

The _____ was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

Accepted Answer

A)  Mercosur 
B)  Asia-Pacific Economic Cooperation 
C)  Andean Community 
D)  Association of Southeast Asian Nations 
A)  Mercosur 
B)  Asia-Pacific Economic Cooperation 
C)  Andean Community 
D)  Association of Southeast Asian Nations

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

What are impediments to countries integrating?

Accepted Answer

Even with strong economic and political

Question 8

Bolivia, Peru, Ecuador, Columbia, and Venezuela are all members of _____.

Accepted Answer

A)  Mercosur 
B)  NAFTA 
C)  APEC 
D)  the Andean Pact 
A)  Mercosur 
B)  NAFTA 
C)  APEC 
D)  the Andean Pact

Question 9

What is the most enduring free trade area in the world?

Accepted Answer

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

Question 10

What prompted the formation of the European Union?

Accepted Answer

The European Union is the product of two

Question 11

Which feature of a customs union differentiates it from a free trade area?

Accepted Answer

A)  Harmonization of members' tax rates 
B)  A common currency 
C)  A common external trade policy toward nonmembers 
D)  Ability of factors of production to move freely between members 
A)  Harmonization of members' tax rates 
B)  A common currency 
C)  A common external trade policy toward nonmembers 
D)  Ability of factors of production to move freely between members

Question 12

How will EU countries benefit from the establishment of a single currency? What, if any, are the costs of a single currency?

Accepted Answer

There were several reasons that promoted

Question 13

A(n) _____ 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)  economic union 
B)  common market 
C)  customs union 
D)  full political union 
A)  economic union 
B)  common market 
C)  customs union 
D)  full political union

Question 14

Which feature of an economic union differentiates it from a common market?

Accepted Answer

A)  Free flow of products and factors of production between member countries 
B)  A common monetary and fiscal policy 
C)  A common external trade policy toward nonmembers 
D)  Ability of factors of production to move freely between members 
A)  Free flow of products and factors of production between member countries 
B)  A common monetary and fiscal policy 
C)  A common external trade policy toward nonmembers 
D)  Ability of factors of production to move freely between members

Question 15

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 16

Three long-term EU members, Great Britain, _____, and Sweden, have not adopted the euro.

Accepted Answer

A)  France 
B)  Norway 
C)  Denmark 
D)  Greece 
A)  France 
B)  Norway 
C)  Denmark 
D)  Greece

Question 17

Regional economic integration involves agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a concern of some economist regarding regional integration?

Accepted Answer

A)  The benefits of regional integration are determined by the extent of trade diversion. 
B)  The benefits of regional integration may have been oversold, while the costs have been ignored. 
C)  A regional free trade agreement will benefit the world only if the amount of trade it diverts exceeds the amount it creates. 
D)  The costs of regional integration will be exceedingly high with little chance that the benefits will outweigh the costs. 
A)  The benefits of regional integration are determined by the extent of trade diversion. 
B)  The benefits of regional integration may have been oversold, while the costs have been ignored. 
C)  A regional free trade agreement will benefit the world only if the amount of trade it diverts exceeds the amount it creates. 
D)  The costs of regional integration will be exceedingly high with little chance that the benefits will outweigh the costs.

Question 19

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 20

In a customs union, trade barriers are eliminated among member countries, and each country maintains its own external trade polices with nonmember countries.

Accepted Answer

A) True 
 B)False

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

The lowering of barriers to trade and investment between countries is likely to lead to _____ throughout the EU.

Discuss the opportunities arising from the creation of the EU for international businesses.

Which is the most enduring free trade area in the world?

The _____ was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

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

What are impediments to countries integrating?

Bolivia, Peru, Ecuador, Columbia, and Venezuela are all members of _____.

What is the most enduring free trade area in the world?

What prompted the formation of the European Union?

Which feature of a customs union differentiates it from a free trade area?

How will EU countries benefit from the establishment of a single currency? What, if any, are the costs of a single currency?

A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Which feature of an economic union differentiates it from a common market?

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

Three long-term EU members, Great Britain, _____, and Sweden, have not adopted the euro.

Regional economic integration involves agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

Which of the following is a concern of some economist regarding regional integration?

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

In a customs union, trade barriers are eliminated among member countries, and each country maintains its own external trade polices with nonmember countries.

Globalization

National Differences in Political Economy, 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 RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 9: Regional Trade Pacts Give the Mexican Auto Industry an Edge

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

The lowering of barriers to trade and investment between countries is likely to lead to _____ throughout the EU.

Discuss the opportunities arising from the creation of the EU for international businesses.

Which is the most enduring free trade area in the world?

The _____ was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

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

What are impediments to countries integrating?

Bolivia, Peru, Ecuador, Columbia, and Venezuela are all members of _____.

What is the most enduring free trade area in the world?

What prompted the formation of the European Union?

Which feature of a customs union differentiates it from a free trade area?

How will EU countries benefit from the establishment of a single currency? What, if any, are the costs of a single currency?

A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Which feature of an economic union differentiates it from a common market?

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

Three long-term EU members, Great Britain, _____, and Sweden, have not adopted the euro.

Regional economic integration involves agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

Which of the following is a concern of some economist regarding regional integration?

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

In a customs union, trade barriers are eliminated among member countries, and each country maintains its own external trade polices with nonmember countries.

Globalization

National Differences in Political Economy, 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 RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters