Question 1

Which of the following key provisions of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Accepted Answer

A)   Services
B)   Standards
C)   Rules of origin
D)   Uniform customs procedures
E)   Government procurement C

Question 2

When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____.

Accepted Answer

A)   demand creation
B)   market information analysis
C)   physical distribution
D)   exchange
E)   market and product planning, development D

Question 3

According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.

Accepted Answer

A)   mass production
B)   commercial-transition
C)   self-sufficient
D)   surplus commodity product
E)   small scale B

Question 4

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.

Accepted Answer

A)   NAFTA
B)   Caricom
C)   Mercosur
D)   SACU
E)   DR-CAFTA

Question 5

Given the fact that NAFTA is now effective among the U.S., Mexico, and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:

Accepted Answer

A)   it will improve the image of its goods.
B)   Mexico has lower wages than Sri Lanka.
C)   it will enable the company to get an entirely western consumer base for its products.
D)   moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.
E)   workers in Mexico are more skilled than those in Sri Lanka.

Question 6

As a country develops, market behavior changes and eventually it leads to market segmentation.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of privatization of state-owned enterprises?

Accepted Answer

A)   It leads to a decline in productivity throughout the private sector.
B)   It was done in order to stop the drain on national budgets due to inefficient state-owned enterprises.
C)   It blocks capital mobility to strategic areas.
D)   It leads to a change in political leadership.
E)   It acts as a set back to the process of modernization.

Question 8

Big emerging markets are of major political importance within their regions.

Accepted Answer

A) True 
 B)False

Question 9

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?

Accepted Answer

A)   DR-CAFTA
B)   NAFTA
C)   CFTA
D)   SAARC
E)   Mercosur

Question 10

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations, and has extremely low per capita income levels falls under the category of _____.

Accepted Answer

A)   first world countries
B)   least-developed countries
C)   less-developed countries
D)   newly industrialized countries
E)   frontier markets

Question 11

Which of the following is the largest common-market agreement in the Americas?

Accepted Answer

A)   CFTA
B)   NAFTA
C)   Mercosur
D)   DR-CAFTA
E)   SAFTA

Question 12

All of the following statements are true about Mercosur EXCEPT that:

Accepted Answer

A)   it is the second-largest common-market agreement in the Americas after NAFTA.
B)   the Treaty of Asunción provided the legal basis for Mercosur.
C)   it is the most influential and successful free trade area in South America.
D)   Mexico has observer status in Mercosur.
E)   Germany is a member of Mercosur.

Question 13

The Mercosur envisioned central institutions similar to those of the European Union institutions.

Accepted Answer

A) True 
 B)False

Question 14

During the early market growth of many countries, the first large open market was _____.

Accepted Answer

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

Question 15

Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.

Accepted Answer

A)   environmental resources
B)   inventory
C)   infrastructure
D)   factors of production
E)   freight claims

Question 16

The more developed an economy, the lesser the variety of marketing functions demanded.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following countries is a part of the free trade area known as CFTA?

Accepted Answer

A)   France
B)   Uruguay
C)   The United States
D)   Argentina
E)   Brazil

Question 18

The newly industrialized countries have per capita incomes lower than LDCs.

Accepted Answer

A) True 
 B)False

Question 19

The success of the Caribbean Free Trade Association led to the creation of the _____.

Accepted Answer

A)   Central American Integration System
B)   Community of Latin American and Caribbean States
C)   Caribbean Community and Common Market
D)   Union of South American Nations
E)   United Nations Economic Commission for Latin America and the Caribbean

Question 20

When the marketing process in a country is in the commercial-transition substage, the only marketing function performed is physical distribution.

Accepted Answer

A) True 
 B)False

Exam 9: Economic Development and the Americas

Which of the following key provisions of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____.

According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.

Given the fact that NAFTA is now effective among the U.S., Mexico, and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:

As a country develops, market behavior changes and eventually it leads to market segmentation.

Which of the following is true of privatization of state-owned enterprises?

Big emerging markets are of major political importance within their regions.

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?

Which of the following is the largest common-market agreement in the Americas?

All of the following statements are true about Mercosur EXCEPT that:

The Mercosur envisioned central institutions similar to those of the European Union institutions.

During the early market growth of many countries, the first large open market was _____.

Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.

The more developed an economy, the lesser the variety of marketing functions demanded.

Which of the following countries is a part of the free trade area known as CFTA?

The newly industrialized countries have per capita incomes lower than LDCs.

The success of the Caribbean Free Trade Association led to the creation of the _____.

When the marketing process in a country is in the commercial-transition substage, the only marketing function performed is physical distribution.