Question 1

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 2

The implied loss of national sovereignty to the ECB underlies the decision by Great Britain,Denmark,and Sweden to stay out of the euro zone for now.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

Accepted Answer

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

Question 4

A common market 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) True 
 B)False

Question 5

Once barriers to trade and investment are removed,companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the most frequently aired objection to free trade in Africa?

Accepted Answer

A)  These economies are too small for free trade to exist. 
B)  These countries are not ready for a full-fledged political union with a common currency. 
C)  They need to be "protected" by tariff barriers from unfair foreign competition. 
D)  The larger nations like South Africa and Kenya stand much to lose from free trade and competition. 
A)  These economies are too small for free trade to exist. 
B)  These countries are not ready for a full-fledged political union with a common currency. 
C)  They need to be "protected" by tariff barriers from unfair foreign competition. 
D)  The larger nations like South Africa and Kenya stand much to lose from free trade and competition.

Question 7

The Asia-Pacific Economic Cooperation 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) True 
 B)False

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

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

Accepted Answer

A)  a common market,a free trade area,an economic union,a customs union,and a political union. 
B)  a free trade area,a customs union,a common market,an economic union,and a political union. 
C)  a customs union,a free trade area,a common market,a political union,and an economic union. 
D)  a common market,an economic union,a customs union,a free trade area,and a political union. 
A)  a common market,a free trade area,an economic union,a customs union,and a political union. 
B)  a free trade area,a customs union,a common market,an economic union,and a political union. 
C)  a customs union,a free trade area,a common market,a political union,and an economic union. 
D)  a common market,an economic union,a customs union,a free trade area,and a political union.

Question 10

The Free Trade Area of the Americas that was established in 2005 has thus far proven to be a success.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following was required for new applicants to qualify for EU membership?

Accepted Answer

A)  Minimum economy size of €1 trillion 
B)  Nationalization of private assets 
C)  Deregulation of markets 
D)  Sustained GDP growth of 10 percent for five years 
A)  Minimum economy size of €1 trillion 
B)  Nationalization of private assets 
C)  Deregulation of markets 
D)  Sustained GDP growth of 10 percent for five years

Question 12

_____ 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 13

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

Question 14

The judges of the European Court of Justice are required to act as representatives of national interests,rather than as independent officials.

Accepted Answer

A) True 
 B)False

Question 15

According to Alexander Yeats:

Accepted Answer

A)  the trade diversion effects of Mercosur outweigh its trade creation effects. 
B)  the fastest growing items in intra-Mercosur trade were capital-intensive goods produced efficiently in the member countries. 
C)  Mercosur countries will be able to compete globally once the group's external trade barriers come down. 
D)  the customs union is becoming more perfect over time. 
A)  the trade diversion effects of Mercosur outweigh its trade creation effects. 
B)  the fastest growing items in intra-Mercosur trade were capital-intensive goods produced efficiently in the member countries. 
C)  Mercosur countries will be able to compete globally once the group's external trade barriers come down. 
D)  the customs union is becoming more perfect over time.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The Andean Pact is a highly successful common market modeled after the EU.

Accepted Answer

A) True 
 B)False

Question 18

The ultimate controlling unit within the EU is the European Council.

Accepted Answer

A) True 
 B)False

Question 19

Briefly describe the four main institutions that make up the political structure of the EU.

Accepted Answer

There are four main institutions that ma

Question 20

Discuss the economic case for economic integration.How does it relate to trade theory?

Accepted Answer

Economic theories of international trade

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

The implied loss of national sovereignty to the ECB underlies the decision by Great Britain,Denmark,and Sweden to stay out of the euro zone for now.

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

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

Once barriers to trade and investment are removed,companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Which of the following is the most frequently aired objection to free trade in Africa?

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

Bolivia,Peru,Ecuador,Columbia,and Venezuela are all members of:

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

The Free Trade Area of the Americas that was established in 2005 has thus far proven to be a success.

Which of the following was required for new applicants to qualify for EU membership?

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

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

The judges of the European Court of Justice are required to act as representatives of national interests,rather than as independent officials.

According to Alexander Yeats:

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

The Andean Pact is a highly successful common market modeled after the EU.

The ultimate controlling unit within the EU is the European Council.

Briefly describe the four main institutions that make up the political structure of the EU.

Discuss the economic case for economic integration.How does it relate to trade theory?

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

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

The implied loss of national sovereignty to the ECB underlies the decision by Great Britain,Denmark,and Sweden to stay out of the euro zone for now.

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

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

Once barriers to trade and investment are removed,companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Which of the following is the most frequently aired objection to free trade in Africa?

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

Bolivia,Peru,Ecuador,Columbia,and Venezuela are all members of:

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

The Free Trade Area of the Americas that was established in 2005 has thus far proven to be a success.

Which of the following was required for new applicants to qualify for EU membership?

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

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

The judges of the European Court of Justice are required to act as representatives of national interests,rather than as independent officials.

According to Alexander Yeats:

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

The Andean Pact is a highly successful common market modeled after the EU.

The ultimate controlling unit within the EU is the European Council.

Briefly describe the four main institutions that make up the political structure of the EU.

Discuss the economic case for economic integration.How does it relate to trade theory?

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