Chat with AIExam 2: Economic Environment
It has been suggested that cooperative inter-relationships between countries (regional groupings) can be classified into five broad categories. Briefly summarize and describe each of these categories and indicate differences that may be present.
(82) 
Verifieda. Free Trade Area. This form has a higher level of integration than a loosely
formed regional cooperation and is a formal agreement among two or more
countries to reduce or eliminate customs duties and non-tariff barriers among
partner countries.
1). NAFTA is an illustration.
2). The free trade area is not free of all trade barriers.
b. Customs Union. When members of a free trade area add common external
tariffs to the provisions of the free trade agreement then the free trade area
becomes the customs union (ASEAN is an example).
c. Common Market. A common market eliminates all tariffs and barriers to
trade among members of the common market, adopts a set of external tariffs
on non-members, and removes all restrictions on the flow of capital and
labor among member nations.
d. Monetary Union. In this form, member nations move to a common currency
and a central bank.
1). The European Union has achieved this step.
e. Political Union. In this phase, new nations are created. Integration is achieved
on a voluntary basis. A loose political union normally comes first (such
as the British Commonwealth).
NAFTA is the free trade area among the United States, Mexico, and ______________.
(85) VerifiedA
____________________ are highly interested in putting strong international intellectual property laws in place:
(69) VerifiedB
The World Trade Organization's (WTO) ninth round of trade talks which were launched in November 2001 is called:
(64) The primary difference between a common market and a customs union is that the common market:
(94) The world marketplace is shrinking and changing. One of the vehicles that has been instrumental in this change is the General Agreement on Tariffs and Trade (GATT). Explain what GATT is and how it has affected international business.
(77) With respect to intellectual property rights, an example of an information-related product is:
(78) In the country competitiveness report in 2008/09, three of the top ten countries are from _________________ countries.
(82) An evolving trend in international economic activity is the formation of:
(82) The main operating principle of the General Agreements of Tariffs and Trade (GATT) was the concept of normal trade relations (NTR) status, formerly known as:
(89) In general, the larger the country's domestic economy, the less dependent it tends to be on exports and imports relative to its ________________.
(90) The new European currency, the euro, began its circulation in January ________.
(76) When members of a free trade area add common external tariffs to the provisions of the free trade agreement, the free trade area becomes a:
(66) The International Trade Organization (ITO) was formed after:
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