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Q:
A ________ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.
A) restricted trade area
B) noncooperation agreement
C) regional cooperation for development
D) tariff pact
E) free trade area
Q:
The most basic economic integration and cooperation, in which governments agree to participate jointly to develop basic industries beneficial to each economy, is the
A) political union.
B) common market.
C) regional cooperation for development (RCD).
D) customs union.
E) free trade area (FTA).
Q:
At the most general level, ________ represents the most important and comprehensive trade agreement in history.
A) NAFTA
B) the Amsterdam Treaty
C) MERCOSUR
D) the WTO
E) ASEAN
Q:
One of the first factors that gave the European Union an edge over others in the process of becoming a common market was a
A) similarity in agriculture and monetary policies.
B) similarity in political systems.
C) similarity in languages.
D) well-developed transportation network.
E) common affiliation toward democracy.
Q:
Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share ________ and are commonly aware of being European.
A) a common language
B) a long-established Christian heritage
C) a dislike for foreigners
D) a strong affiliation to monarchy and feudalism
E) a democratic background and heritage
Q:
As Timothy examines markets that might match his company's investment requirements, he is particularly interested in the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together physically. What critical factor for ensuring an effective economic union is Timothy most likely examining when reviewing transportation networks?
A) cultural factors
B) trade factors
C) political factors
D) geographic proximity
E) economic factors
Q:
What is one of the multilateral free trade agreements signed by the United States?
A) CETA
B) NAFTA
C) NATO
D) MERCOSUR
E) LAFTA
Q:
With respect to the political factors that affect supranational markets, ________ is one of the most cherished possessions of any nation.
A) a two-party system
B) a three-party system
C) state federalism
D) state sovereignty
E) a strong middle class
Q:
What is a basic requisite for the development of a supranational market arrangement?
A) political amenability among countries
B) business strategy sharing
C) adoption of common cultural practices
D) protection of the market by exercising tariffs and boycotts
E) a desire to maintain state sovereignty
Q:
What is a requisite for the survival of any economic union?
A) avoiding potentially significant opportunities for international business
B) having agreements and mechanisms in place in order to settle economic disputes
C) including into the union countries with diverse economies, distinctive monetary systems, developed agricultural bases, and different natural resources
D) establishing of a comprehensive agriculture and economic policy
E) ensuring biased treatment of goods produced within the union
Q:
Nations with complementary economic bases are least likely to
A) develop a distinctive monetary system.
B) allow individual differences to be outweighed by the total benefit of economic integration.
C) experience internal economic development.
D) achieve enlargement of market opportunities through preferential tariff treatment.
E) encounter frictions in the development and operation of a common market unit.
Q:
Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. What best describes the primary way market opportunities are enlarged by economic unions?
A) preferential tariff treatment for participating members
B) use of embargos to eliminate rival competition
C) formulation of cartels
D) quest for economic dominance through boycotts of rivals
E) movement toward a common language as a means to overcoming economic hurdles
Q:
The World Trade Organization is wholly dedicated to
A) expanding capitalism.
B) eliminating language barriers in trade.
C) having free and open national borders.
D) enforcing international anti-bribery laws.
E) improving the efficiency of trade among nations.
Q:
It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. What is being referred to here?
A) the European Commission
B) the European Economic Community
C) the Organization for Security and Co-operation in Europe
D) the Asia-Pacific Economic Cooperation
E) the European Community
Q:
Multinational market groups form
A) a large organization that promotes harmony by mutual agreement to a common peace treaty.
B) large markets that provide potentially significant opportunities for international business.
C) a conglomerate that seeks to undertake foreign trading ventures as one company.
D) a nonprofit entity that works together to aid the development of underdeveloped countries.
E) regional trading blocs without trade restrictions internally and borders restricted from outsiders.
Q:
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called
A) multilateral economic associations.
B) cartels.
C) multinational market regions.
D) trade associations.
E) political and cultural associations.
Q:
With the adoption of the euro, price differentials are much easier to spot, and EU consumers can search for the best bargains in brand-name products more easily.
Q:
The initial aim of a multinational market is to protect businesses that operate within its borders.
Q:
The Arab states on the Persian Gulf, Egypt, and Morocco worked out an agreement on an Arab Free Trade Area, sometimes called the Greater Arab Free Trade Area (GAFTA).
Q:
Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD), have renamed their regional group the Economic Cooperation Organization (ECO).
Q:
The Southern African Development Community is the most advanced and viable of Africa's regional organizations.
Q:
Economic growth among African countries has been on the downswing for the past several years.
Q:
The first Soviet republics to declare independence were the Baltic states.
Q:
The Commonwealth of Independent States is a loose economic and political alliance with open borders but no central government.
Q:
Europe and Asia have a trade group that has emerged and persisted since the dissolution of the Soviet Union called the Commonwealth of Independent States.
Q:
All three Baltic states started off with the same legacy of efficient industry and American-style capitalist economies.
Q:
In the Amsterdam Treaty, the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.
Q:
The decisions of the European Court of Justice are not final, but can be appealed in national courts.
Q:
The Council of Ministers of the European Union can enact into law all proposals involving changes in tax rates on products and services by majority vote.
Q:
In line with its goal of enlargement, ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007.
Q:
Historically, standards have been used to effectively increase market access, such as the sale of German beer in Italy.
Q:
The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC).
Q:
The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty.
Q:
A commonwealth of nations is an organization providing for the strongest possible economic integration relationship.
Q:
The blueprint for the European Union began with the Treaty of Rome in 1957.
Q:
A customs union is the most fully integrated form of regional cooperation.
Q:
A free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services.
Q:
At the most general level, the WTO represents the most important and comprehensive trade agreement in history.
Q:
The most basic level of economic integration and cooperation is the geographical local federation (GLF).
Q:
The importance of political unity to fully achieve all the benefits of economic integration drove European countries to form the World Trade Organization (WTO).
Q:
Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit.
Q:
The WTO primary purpose is making trade more profitable for emerging economies.
Q:
An important objective of the member countries of the United Nations is bringing about mutual economic development.
Q:
Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.
Q:
Why was Caribbean Community and Common Market (CARICOM) created? What are its goals?
Q:
Describe the origin and purpose of Mercosur and its role in improving trade associations among American nations.
Q:
Explain how the Internet impacts economic development in emerging economies.
Q:
List and briefly describe five of the nine factors that existed during the economic growth of newly industrialized countries (NICs).
Q:
Describe the three categories used by the United Nations to classify a country's stage of economic development on the basis of its level of industrialization.
Q:
Explain the concept of economic development.
Q:
Describe the political and economic changes affecting developing countries, including foreign investment, transition from socialist to market-driven economies, and trade policies.
Q:
Explain the importance of time zones for trade relationships and marketing operations. What are the three multinational market regions that comprise major trading blocs?
Q:
More household money goes for ________ in emerging markets than in developed markets.
A) housing
B) durable goods
C) food
D) leisure
E) education
Q:
One way that LAIA differs from LAFTA, its predecessor, is
A) the differential treatment of member countries according to their level of economic development.
B) the inclusion of rules of origin.
C) the exclusion of tariff barrier.
D) the members are forbidden from establishing bilateral trade agreements among member countries.
E) the introduction of a common currency for the member countries.
Q:
The long-term goal of the LAIA (Latin American Integration Association), better known by its Spanish acronym, ALADI, is to
A) improve the literacy levels in member countries.
B) reduce the child mortality rates in member countries.
C) establish a Latin American common market.
D) establish a common currency for all its member countries.
E) standardize the industrial production in the member countries.
Q:
What is true of state ownership in Latin America?
A) Privatization of state-owned enterprises blocked the release of immediate capital to invest in strategic areas.
B) State ownership is the most ideal engine for economic growth.
C) Privatization of state-owned enterprises continually drained the future national resources.
D) State ownership has resulted in complicated and unpredictable regulatory environments.
E) State ownership has consistently resulted in the inclusion of foreign and domestic private ownership, and the formation of efficient public companies.
Q:
What accounts for the lion's share of Mercosur exports to Europe?
A) clothing and apparel
B) telecommunication equipment
C) consumer durables
D) petroleum and minerals
E) agricultural and agro-industrial products
Q:
Which of the following treaties provided the legal basis for Mercosur?
A) Treaty of Verdun
B) Treaty of Asuncin
C) Treaty of Westphalia
D) Treaty of Versailles
E) Treaty of Montevideo
Q:
What is the second-largest common-market agreement in the Americas, after NAFTA?
A) CFTA
B) TPP
C) Mercosur
D) DR-CAFTA
E) SAFTA
Q:
What is the largest common-market agreement in the Americas?
A) CFTA
B) NAFTA
C) Mercosur
D) DR-CAFTA
E) SAFTA
Q:
Haiti is a member of
A) CARICOM.
B) NAFTA.
C) CFTA.
D) LAIA.
E) Mercosur.
Q:
What country is a member of the Latin American Integration Association (LAIA, aka ALADI)?
A) Bahamas
B) Cuba
C) Nicaragua
D) Costa Rica
E) Honduras
Q:
In the context of a political and economic revolution that has been taking place in Latin America, state ownership has resulted in
A) inclusion of foreign and domestic private ownership.
B) efficient state treasuries.
C) efficient public companies.
D) predictable regulatory environments.
E) inefficient public companies.
Q:
CARICOM established the CSME (CARICOM Single Market and Economy) with the major goal of
A) establishing central institutions similar to those of the European Union institutions.
B) forming a political union.
C) implementing a common currency for all member nations.
D) increasing nontariff barriers.
E) implementing uniform customs procedures.
Q:
The success of the Caribbean Free Trade Association led to the creation of the
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.
Q:
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?
A) DR-CAFTA
B) NAFTA
C) CFTA
D) SAARC
E) Mercosur
Q:
What country is a member of the free trade agreement DR-CAFTA?
A) Bahrain
B) Bhutan
C) Morocco
D) Costa Rica
E) Oman
Q:
Given the fact that NAFTA is now effective in the U.S., Mexico, and Canada, an American company that has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because
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 finished 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.
Q:
NAFTA differs from Mercosur in that NAFTA
A) was provided legal basis by the Treaty of Asuncin.
B) is the second-largest common-market agreement in the Americas after Mercosur.
C) includes Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay.
D) aims to address and improve all aspects of doing business within North America.
E) aims to establish a common currency for its Latin American members.
Q:
What is true about NAFTA?
A) It allows the use of standards and technical regulations as obstacles to trade.
B) It was ratified and became effective in the year 2000.
C) It prohibits U.S. and Canadian financial institutions to open wholly owned subsidiaries in Mexico.
D) Its provisions require goods to contain minimum of 10% North American content to be traded duty free.
E) Its provisions require Canada, Mexico, and the United States to implement uniform customs procedures and regulations.
Q:
What key provision 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?
A) services
B) standards
C) rules of origin
D) uniform customs procedures
E) government procurement
Q:
________ required the United States, Canada, and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.
A) Mercosur
B) LAIA
C) CARICOM
D) NAFTA
E) DR-CFTA
Q:
Which country announced that it would seek free trade with the United States shortly after the ratification of the United StatesCanada Free Trade Area (CFTA)?
A) Germany
B) Australia
C) Mexico
D) The United Kingdom
E) China
Q:
The CFTA was designed to
A) establish tariffs between the U.S. and Europe.
B) create several independent commercial markets for goods and services.
C) become a customs union like the European Community.
D) involve both economic and political unions.
E) eliminate tariffs and other trade barriers between the United States and Canada.
Q:
The three members of the North American Free Trade Agreement (NAFTA) are
A) the United States, the United Kingdom, and France.
B) the United States, Cuba, and Uruguay.
C) Canada, China, and Japan.
D) the United States, France, and Germany.
E) Canada, Mexico, and the United States.
Q:
Which country is a part of the free trade area known as CFTA?
A) France
B) Uruguay
C) the United States
D) Argentina
E) Brazil
Q:
The type of growth that is happening in BEMs today is analogous to what happened in
A) Saudi Arabia in the 1800s.
B) India during the rule of the British Empire.
C) Russia after the fall of the Czar.
D) Europe after World War II.
E) Iraq between 1890 and 1990.
Q:
Which country has been identified by the Department of Commerce as a BEM (big emerging market)?
A) Philippines
B) Egypt
C) Venezuela
D) Mexico
E) Nicaragua
Q:
Country A is a developing country that has a significant population and represents a sizable market for a wide range of products. It has a strong growth rate and is considered a regional economic driver. Based on this information, Country A can be classified as a ________ market.
A) grey
B) big emerging
C) two-sided
D) frontier
E) niche
Q:
Developing countries with markets that are geographically large, have strong growth rates, are regional economic drivers, and represent sizable markets for a wide range of products have been identified by the U.S. Department of Commerce as ________ markets.
A) frontier
B) big emerging
C) two-sided
D) niche
E) grey