Question 1

The bulk of intra-ASEAN trade consisted of goods whose tariffs had been reduced through an ASEAN preferential trade arrangement.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a reason why Turkey is not yet a member of the EU?

Accepted Answer

A)  Only about 10 percent of Turkey's international trade is with the EU. 
B)  There are concerns over human rights issues in the country. 
C)  The country has yet to form a customs union with the EU. 
D)  Turkey has a weak economy. 
A)  Only about 10 percent of Turkey's international trade is with the EU. 
B)  There are concerns over human rights issues in the country. 
C)  The country has yet to form a customs union with the EU. 
D)  Turkey has a weak economy.

Question 3

Political turmoil in several African nations has persistently impeded any meaningful progress in economic integration.

Accepted Answer

A) True 
 B)False

Question 4

The movement toward regional economic integration been most successful in _____.

Accepted Answer

A)  Europe 
B)  Asia 
C)  Africa 
D)  Central America 
A)  Europe 
B)  Asia 
C)  Africa 
D)  Central America

Question 5

A(n) _____ entails even closer economic integration and cooperation than a common market.

Accepted Answer

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

Question 6

The European Union is an example of a perfect economic union.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the Free Trade Area of the Americas. What is hindering its progress? What is the position of the U.S. on the agreement? How does Brazil feel about the FTAA?

Accepted Answer

The Free Trade Area of the Americas (FTA

Question 8

A political benefit of economic integration is that it:

Accepted Answer

A)  enables participants to achieve gains from the free flow of trade. 
B)  enables participants to achieve gains from the free flow of investment. 
C)  allow countries to specialize in the production of goods and services that they can produce most efficiently. 
D)  reduces the potential for violent conflict. 
A)  enables participants to achieve gains from the free flow of trade. 
B)  enables participants to achieve gains from the free flow of investment. 
C)  allow countries to specialize in the production of goods and services that they can produce most efficiently. 
D)  reduces the potential for violent conflict.

Question 9

Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

Accepted Answer

A) True 
 B)False

Question 10

Which treaty, signed in December 1991, committed EC members to adopting a common currency by January 1, 1999?

Accepted Answer

A)  The Maastricht Treaty 
B)  The Treaty of Rome 
C)  The Single European Act 
D)  The Treaty of Lisbon 
A)  The Maastricht Treaty 
B)  The Treaty of Rome 
C)  The Single European Act 
D)  The Treaty of Lisbon

Question 11

_____ occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area.

Accepted Answer

A)  Trade creation 
B)  A customs union 
C)  Trade diversion 
D)  A common market 
A)  Trade creation 
B)  A customs union 
C)  Trade diversion 
D)  A common market

Question 12

Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following explains why economic integration has never been easy to achieve or sustain, despite the strong economic and political arguments in support?

Accepted Answer

A)  No country has shown significant improvement because of economic integration. 
B)  Countries fear a reduction of their political weight in the world because of economic integration. 
C)  Linking neighboring economies and making them increasingly dependent on each other creates little incentives for political cooperation. 
D)  While a nation as a whole may benefit significantly, certain groups may lose. 
A)  No country has shown significant improvement because of economic integration. 
B)  Countries fear a reduction of their political weight in the world because of economic integration. 
C)  Linking neighboring economies and making them increasingly dependent on each other creates little incentives for political cooperation. 
D)  While a nation as a whole may benefit significantly, certain groups may lose.

Question 14

The most recent attempt to reenergize the free trade movement in Africa occurred in early 2001, when _____, Uganda, and Tanzania, member states of the East African Community (EAC), committed themselves to relaunching their bloc, 24 years after it collapsed.

Accepted Answer

A)  Sudan 
B)  Ethiopia 
C)  Kenya 
D)  Somalia 
A)  Sudan 
B)  Ethiopia 
C)  Kenya 
D)  Somalia

Question 15

Which level of economic integration eliminates trade barriers between member countries and adopts a common external trade policy?

Accepted Answer

A)  Political union 
B)  Customs union 
C)  Common market 
D)  Economic union 
A)  Political union 
B)  Customs union 
C)  Common market 
D)  Economic union

Question 16

_____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

Accepted Answer

A)  Trade deficit 
B)  Trade diversion 
C)  Trade creation 
D)  Trade distortion 
A)  Trade deficit 
B)  Trade diversion 
C)  Trade creation 
D)  Trade distortion

Question 17

The ultimate controlling unit within the EU is the _____.

Accepted Answer

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

Question 18

The Single European Act committed EU countries to adopting a common currency by January 1, 1999.

Accepted Answer

A) True 
 B)False

Question 19

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 20

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of WTO?

Accepted Answer

A)  Nontariff barriers 
B)  Services 
C)  Energy markets 
D)  Tax rates 
A)  Nontariff barriers 
B)  Services 
C)  Energy markets 
D)  Tax rates

The bulk of intra-ASEAN trade consisted of goods whose tariffs had been reduced through an ASEAN preferential trade arrangement.

Which of the following is a reason why Turkey is not yet a member of the EU?

Political turmoil in several African nations has persistently impeded any meaningful progress in economic integration.

The movement toward regional economic integration been most successful in _____.

A(n) _____ entails even closer economic integration and cooperation than a common market.

The European Union is an example of a perfect economic union.

Discuss the Free Trade Area of the Americas. What is hindering its progress? What is the position of the U.S. on the agreement? How does Brazil feel about the FTAA?

A political benefit of economic integration is that it:

Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

Which treaty, signed in December 1991, committed EC members to adopting a common currency by January 1, 1999?

_____ occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area.

Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.

Which of the following explains why economic integration has never been easy to achieve or sustain, despite the strong economic and political arguments in support?

The most recent attempt to reenergize the free trade movement in Africa occurred in early 2001, when _____, Uganda, and Tanzania, member states of the East African Community (EAC), committed themselves to relaunching their bloc, 24 years after it collapsed.

Which level of economic integration eliminates trade barriers between member countries and adopts a common external trade policy?

_____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

The ultimate controlling unit within the EU is the _____.

The Single European Act committed EU countries to adopting a common currency by January 1, 1999.

Once barriers to trade and investment are removed, companies:

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of WTO?

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

The bulk of intra-ASEAN trade consisted of goods whose tariffs had been reduced through an ASEAN preferential trade arrangement.

Which of the following is a reason why Turkey is not yet a member of the EU?

Political turmoil in several African nations has persistently impeded any meaningful progress in economic integration.

The movement toward regional economic integration been most successful in _____.

A(n) _____ entails even closer economic integration and cooperation than a common market.

The European Union is an example of a perfect economic union.

Discuss the Free Trade Area of the Americas. What is hindering its progress? What is the position of the U.S. on the agreement? How does Brazil feel about the FTAA?

A political benefit of economic integration is that it:

Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

Which treaty, signed in December 1991, committed EC members to adopting a common currency by January 1, 1999?

_____ occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area.

Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.

Which of the following explains why economic integration has never been easy to achieve or sustain, despite the strong economic and political arguments in support?

The most recent attempt to reenergize the free trade movement in Africa occurred in early 2001, when _____, Uganda, and Tanzania, member states of the East African Community (EAC), committed themselves to relaunching their bloc, 24 years after it collapsed.

Which level of economic integration eliminates trade barriers between member countries and adopts a common external trade policy?

_____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

The ultimate controlling unit within the EU is the _____.

The Single European Act committed EU countries to adopting a common currency by January 1, 1999.

Once barriers to trade and investment are removed, companies:

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of WTO?

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