Question 1

Individually and collectively, Association of Southeast Asian Nations (ASEAN)countries are active in regional and global trade.

Accepted Answer

A) True 
 B)False  True

Question 2

The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:

Accepted Answer

A)  making it difficult to export food products from one country to another.
B)  increasing the cost of production since the euro replaced local currency.
C)  shifting products from one market to another in the event of shortages.
D)  reduced tariffs and quotas for products imported from non-EU members.
E)  having less flexibility in the placement of factories. C

Question 3

Which member of the Central American Integration System has both the largest economy and the largest population?

Accepted Answer

A)  El Salvador
B)  Honduras
C)  Guatemala
D)  Nicaragua
E)  Costa Rica C

Question 4

European countries will definitely benefit by having an FTA with the United States. However there are some sticky points which need resolution. All of the following points need consideration except:

Accepted Answer

A)  that the EU restricts the import of most genetically modified crops, which are common in the United States.
B)  further reduction of tariffs which now average between 2 and 3 percent.
C)  a variety of regulations that hamper cross-border investment and purchasing.
D)  the US government would like easing of restrictions for purchasing European goods.
E)  the name "Parmesan" applied to the "cows-milk" cheese.

Question 5

The new country which joined the EU at the beginning of 2015 is:

Accepted Answer

A)  Slovakia.
B)  Lithuania.
C)  Latvia.
D)  Slovenia.
E)  Cyprus.

Question 6

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

Accepted Answer

A)  Argentina reduced the duties on consumer goods.
B)  Argentina devalued its currency for exports and capital transactions.
C)  Argentina added tariffs on imported wines.
D)  Argentina adopted the U.S. dollar as official currency.
E)  Argentina added tariffs on wine produced within the country.

Question 7

The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with:

Accepted Answer

A)  Russia.
B)  China.
C)  the United States.
D)  the United Kingdom.
E)  Australia.

Question 8

A free trade area represents the most fully developed form of preferential trade agreement among nations.

Accepted Answer

A) True 
 B)False

Question 9

The Maastricht Treaty called for:

Accepted Answer

A)  the creation of an Asia Free Trade Area (AFT
A)  .
B)  the creation of an economic and monetary union in Europe.
C)  Chile's acceptance into Mercosur.
D)  the purchase of CDs and tapes from distributors in Europe.
E)  the creation of the seven-nation European Free Trade Association (EFT
A)  .

Question 10

The form of economic cooperation that calls for 1)eliminating internal barriers to trade and 2)establishing common external barriers is known as a(n):

Accepted Answer

A)  European Union.
B)  Economic union.
C)  Customs union.
D)  Free trade area.
E)  Common market.

Question 11

Anxious to retain control of a valuable agricultural export, officials at Peru's National Commission Against Biopiracy have ramped up efforts to prevent maca seeds from being smuggled out of the country for cultivation elsewhere.

Accepted Answer

A) True 
 B)False

Question 12

Some companies choose not to produce in Mexico since a lack of checkpoints means that cargo sits on trucks at bottleneck points such as Tijuana, a key hub for manufacturing.

Accepted Answer

A) True 
 B)False

Question 13

Under Economic Union, a doctor or lawyer qualified in one country can practice in another member country.

Accepted Answer

A) True 
 B)False

Question 14

The markets of Central and Eastern Europe present interesting opportunities and offer attractive opportunities for low-cost manufacturing due to:

Accepted Answer

A)  their location being close to the sea.
B)  the cultural similarities.
C)  wage rates being lower than in Spain, Portugal and Greece.
D)  strict laws and regulations.
E)  prohibitive tariffs and export restrictions.

Question 15

In spite of forming an economic bloc, the 10 ASEAN nations have many problems that need to be solved. List any two problems?

Accepted Answer

The answer of In spite of forming an economic bloc,...

Question 16

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n):

Accepted Answer

A)  Economic union.
B)  Customs union.
C)  Free trade area.
D)  Common market.
E)  None of the above

Question 17

Mercosur or the Common Market of the South resulted from a treaty signed by four countries: Argentina, Brazil, Paraguay, and Venezuela.

Accepted Answer

A) True 
 B)False

Question 18

According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because:

Accepted Answer

A)  it is expensive when compared to local products.
B)  it is considered genetically modified agricultural product.
C)  terms such as "Parmesan" is used on the package labels..
D)  it does not contain salt and an enzyme.
E)  it contains synthetic cellulose powder.

Question 19

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation:

Accepted Answer

A)  DSB.
B)  GATT.
C)  FTAA.
D)  NAFTA.
E)  ASEAN.

Question 20

________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.

Accepted Answer

A)  European Union
B)  Economic union
C)  Customs union
D)  Free trade area
E)  Common market

Exam 3: The Global Trade Environment

Individually and collectively, Association of Southeast Asian Nations (ASEAN)countries are active in regional and global trade.

The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:

Which member of the Central American Integration System has both the largest economy and the largest population?

European countries will definitely benefit by having an FTA with the United States. However there are some sticky points which need resolution. All of the following points need consideration except:

The new country which joined the EU at the beginning of 2015 is:

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with:

A free trade area represents the most fully developed form of preferential trade agreement among nations.

The Maastricht Treaty called for:

The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n) :

Anxious to retain control of a valuable agricultural export, officials at Peru's National Commission Against Biopiracy have ramped up efforts to prevent maca seeds from being smuggled out of the country for cultivation elsewhere.

Some companies choose not to produce in Mexico since a lack of checkpoints means that cargo sits on trucks at bottleneck points such as Tijuana, a key hub for manufacturing.

Under Economic Union, a doctor or lawyer qualified in one country can practice in another member country.

The markets of Central and Eastern Europe present interesting opportunities and offer attractive opportunities for low-cost manufacturing due to:

In spite of forming an economic bloc, the 10 ASEAN nations have many problems that need to be solved. List any two problems?

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n) :

Mercosur or the Common Market of the South resulted from a treaty signed by four countries: Argentina, Brazil, Paraguay, and Venezuela.

According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because:

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation:

________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.