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

Which of the following accounts for about 55 percent of the world's GNP and 49 percent of world trade?

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

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

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

A regional free trade agreement will benefit the world only when the amount of trade it creates exceeds the amount of trade it diverts.

Which feature of a common market differentiates it from a customs union?

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

There are two main trading blocs in Europe,the European Union and the European Free Trade Association.

Three countries agree to remove barriers to trade between member countries and adopt a common external trade policy toward nonmembers.They also agree to allow people and other factors of production to move freely across their borders.Which level of economic integration is this an example of?

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

In theory,WTO rules should ensure that a free trade agreement results in trade diversion.

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

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

Discuss the trend toward increased regional economic integration.

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?

What is the political case for integration? How did political arguments influence the establishment of the European Union?

A key benefit resulting from the adoption of the euro is the ability to compare prices across member markets.

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

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

Which of the following is seen to be a consequence of the size of the EU from 15 nations to 27 nations?