Question 1

Why is the European Council said to be the ultimate controlling authority within the EU?

Accepted Answer

A)  Since it is responsible for implementing EU legislation and monitoring compliance with EU laws by member states 
B)  Since its role in setting competition policy is becoming increasingly important to business 
C)  Since it has the right to vote on the appointment of commissioners 
D)  Since draft legislation from the commission can become EU law only if the council agrees 
A)  Since it is responsible for implementing EU legislation and monitoring compliance with EU laws by member states 
B)  Since its role in setting competition policy is becoming increasingly important to business 
C)  Since it has the right to vote on the appointment of commissioners 
D)  Since draft legislation from the commission can become EU law only if the council agrees

Question 2

Which of the following is seen as a benefit of the euro?

Accepted Answer

A)  Governments gaining greater control over their monetary policies 
B)  Reduced competition in most industries 
C)  Zero interest expense for businesses 
D)  Lower foreign exchange and hedging costs 
A)  Governments gaining greater control over their monetary policies 
B)  Reduced competition in most industries 
C)  Zero interest expense for businesses 
D)  Lower foreign exchange and hedging costs

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of ASEAN?

Accepted Answer

A)  China,India,South Korea,and Singapore are among its members. 
B)  Collectively,the member states account for about 55 percent of world trade. 
C)  It is slowly progressing toward establishing a free trade zone. 
D)  It has been successful in fulfilling its basic objective of fostering freer trade between member countries. 
A)  China,India,South Korea,and Singapore are among its members. 
B)  Collectively,the member states account for about 55 percent of world trade. 
C)  It is slowly progressing toward establishing a free trade zone. 
D)  It has been successful in fulfilling its basic objective of fostering freer trade between member countries.

Question 5

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

Question 6

In early 2006,six CARICOM members and the United States established the _____,which was modeled on the EU's single market.

Accepted Answer

A)  Central American Common Market 
B)  Central America Free Trade Agreement 
C)  Caribbean Single Market and Economy 
D)  North American Free Trade Area 
A)  Central American Common Market 
B)  Central America Free Trade Agreement 
C)  Caribbean Single Market and Economy 
D)  North American Free Trade Area

Question 7

Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from Country B. Country A used to previously import such machinery at lower rates from another country. Which of the following has occurred in this scenario?

Accepted Answer

A) Trade creation 
B) Efficiency gain 
C) Trade deficit 
D) Trade diversion 
A) Trade creation 
B) Efficiency gain 
C) Trade deficit 
D) Trade diversion

Question 8

Linking neighboring countries economically and making them interdependent creates incentives to increase political cooperation as well.

Accepted Answer

A) True 
 B)False

Question 9

A central reason for the establishment of the EU was the devastation of Western Europe during two world wars and the desire for a lasting peace.

Accepted Answer

A) True 
 B)False

Question 10

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

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 11

A(n)_____ involves the free flow of products and factors of production between member countries,the adoption of a common external trade policy,a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.

Accepted Answer

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

Question 12

A _____ 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)  common market 
B)  customs union 
C)  free trade area 
D)  bonded market 
A)  common market 
B)  customs union 
C)  free trade area 
D)  bonded market

Question 13

What is ASEAN? What is its basic goal? How successful is ASEAN?

Accepted Answer

The Association of Southeast Asian Natio

Question 14

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 15

Describe the state of economic integration in Africa.What factors have hindered the process?

Accepted Answer

There have been efforts to establish tra

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a reason why the European Union is considered an imperfect economic union?

Accepted Answer

A)  Factors of production are not allowed to move freely between member countries. 
B)  Not all members of the union have adopted the euro. 
C)  Almost all markets are heavily regulated. 
D)  Products and services are not allowed to move freely between member countries. 
A)  Factors of production are not allowed to move freely between member countries. 
B)  Not all members of the union have adopted the euro. 
C)  Almost all markets are heavily regulated. 
D)  Products and services are not allowed to move freely between member countries.

Question 19

On average,studies indicate that NAFTA's overall impact has been small but positive.

Accepted Answer

A) True 
 B)False

Question 20

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.

Why is the European Council said to be the ultimate controlling authority within the EU?

Which of the following is seen as a benefit of the euro?

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

Which of the following is true of ASEAN?

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?

In early 2006,six CARICOM members and the United States established the _____,which was modeled on the EU's single market.

Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from Country B. Country A used to previously import such machinery at lower rates from another country. Which of the following has occurred in this scenario?

Linking neighboring countries economically and making them interdependent creates incentives to increase political cooperation as well.

A central reason for the establishment of the EU was the devastation of Western Europe during two world wars and the desire for a lasting peace.

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

A(n)_____ involves the free flow of products and factors of production between member countries,the adoption of a common external trade policy,a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.

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

What is ASEAN? What is its basic goal? How successful is ASEAN?

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

Describe the state of economic integration in Africa.What factors have hindered the process?

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

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

Which of the following is a reason why the European Union is considered an imperfect economic union?

On average,studies indicate that NAFTA's overall impact has been small but positive.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of 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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 9: Regional Economic Integration

Why is the European Council said to be the ultimate controlling authority within the EU?

Which of the following is seen as a benefit of the euro?

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

Which of the following is true of ASEAN?

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?

In early 2006,six CARICOM members and the United States established the _____,which was modeled on the EU's single market.

Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from Country B. Country A used to previously import such machinery at lower rates from another country. Which of the following has occurred in this scenario?

Linking neighboring countries economically and making them interdependent creates incentives to increase political cooperation as well.

A central reason for the establishment of the EU was the devastation of Western Europe during two world wars and the desire for a lasting peace.

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

A(n)_____ involves the free flow of products and factors of production between member countries,the adoption of a common external trade policy,a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.

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

What is ASEAN? What is its basic goal? How successful is ASEAN?

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

Describe the state of economic integration in Africa.What factors have hindered the process?

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

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

Which of the following is a reason why the European Union is considered an imperfect economic union?

On average,studies indicate that NAFTA's overall impact has been small but positive.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of 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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters