Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
International Business
Q:
The stated aim of the Asia-Pacific Economic Cooperation is to increase multilateral cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.
Q:
The basic objective of the Association of Southeast Asian Nations is to foster freer trade among member countries and to achieve cooperation in their industrial policies.
Q:
A major stumbling block in the creation of the Free Trade Area of the Americas is that the United States wants its southern neighbors to agree to higher manufacturing tariffs, which they are not eager to embrace.
Q:
The Andean Community now operates as a customs union.
Q:
The Andean Pact was largely based on the European Union model and was highly successful at achieving its stated goals.
Q:
Since its establishment in January 1, 1999, the euro has steadily appreciated against the U.S. dollar, reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone.
Q:
In an optimal currency area, similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy.
Q:
A disadvantage of the euro is that the development of a pan-European, euro-denominated capital market will decrease the range of investment options open to both individuals and institutions.
Q:
By adopting the euro, the European Union has created the second most widely traded currency in the world after that of the U.S. dollar.
Q:
The European Parliament, which meets in Strasbourg, France, is primarily a legislative rather than consultative body.
Q:
The European Parliament is responsible for proposing European Union (EU) legislation, implementing it, and monitoring compliance with EU laws by member-states.
Q:
The European Council is composed of one representative from the government of each member-state but the membership varies depending on the topic being discussed.
Q:
The European Commission is the ultimate controlling authority within the European Union because draft legislation from the commission can become EU law only if the council agrees.
Q:
With the signing of the Treaty of Rome in 1957, the European Free Trade Association was established.
Q:
The European Union is by far more significant than the European Free Trade Association (EFTA), in terms of membership as well as economic and political influence in the world economy.
Q:
In theory, the World Trade Organization rules should ensure that a free trade agreement results in trade diversion.
Q:
Trade creation occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area.
Q:
Some economists have pointed out that the benefits of regional integration are determined by the extent of trade diversion, as opposed to trade creation.
Q:
In terms of regional economic integration, linking neighboring economies and making them increasingly dependent on each other create incentives for political cooperation between the neighboring states.
Q:
Economic theories suggest that free trade and investment is a positive-sum game, in which all participating countries stand to gain.
Q:
A political union addresses the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations of an economic union.
Q:
In a customs union, a common currency is adopted.
Q:
A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.
Q:
The emphasis of the European Free Trade Association has been on free trade in consumer goods.
Q:
In a free trade area, all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.
Q:
As with free trade in general, regional economic integration creates gain for consumers, but it can be challenging for some producers.
Q:
Briefly describe how the creation of a single market through regional economic integration offers significant opportunities. Provide an example.
Q:
Briefly describe the Association of Southeast Asian Nations.
Q:
Describe the Central American Common Market and the Central America Free Trade Agreement.
Q:
Describe the arguments for the North American Free Trade Agreement (NAFTA).
Q:
Describe the drawbacks of the euro.
Q:
Briefly describe the benefits of the euro.
Q:
What were the objectives of the Single European Act?
Q:
Briefly describe the European Council.
Q:
What are the two political factors that led to the creation of the European Union?
Q:
Define trade creation and trade diversion with respect to regional economic integration.
Q:
What are the two impediments to regional economic integration?
Q:
How is a common market different from an economic union?
Q:
Differentiate between a free trade area and a customs union. Provide an example of each form of economic integration.
Q:
Briefly describe the concept of regional economic integration.
Q:
Which of the following is a threat facing the emergence of single markets?
A.Getting engulfed in a trade war
B.Increased price competition throughout the European Union
C.Increase in price differentials across nations
D.Reduced environmental standards in order to lure investments
E.Overabundance of greenfield investments
Q:
Which of the following is true of the East African Community (EAC)?
A.Its program includes cooperation on immigration, road and telecommunication networks, investment, and capital markets.
B.Its aim is to eliminate import tariffs among the six original members.
C.It is the world's largest free trade area.
D.It seeks to apply national environmental standards, provided such standards have a scientific basis.
E.It seeks to protect intellectual property rights.
Q:
Which of the following is true with regard to the Asia-Pacific Economic Cooperation (APEC)?
A.The stated aim of APEC is to increase multilateral cooperation in view of the economic rise of the Pacific nations.
B.The goal of APEC is to reduce import tariffs among the six original members to zero.
C.APEC is the world's largest free trade area.
D.Collectively, the member-states account for about 85 percent of the world's GNP, 75 percent of world trade, and much of the growth in the world economy.
E.APEC currently has 25 member-states, including such economic powerhouses as Germany, India, and Brazil.
Q:
Which of the following is true of the Asia-Pacific Economic Cooperation (APEC)?
A.It does not include the United States, Japan, and China.
B.The meeting of APEC members in Seattle in 1993 led to greater economic integration.
C.It was founded in 1990 at the suggestion of Australia.
D.APEC members signed a free trade agreement with China that removes tariffs on 90 percent of traded goods.
E.APEC members have established a free trade zone.
Q:
Which of the following refers to an attempt to establish a free trade area between Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam?
A.Asia-Pacific Economic Cooperation
B.South Asian Association for Regional Cooperation
C.Asian Clearing Union
D.Association of Southeast Asian Nations
E.Maastricht Treaty
Q:
Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?
A.The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
B.Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
C.Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
D.The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
E.There is no consensus on trade policies between Brazil and Argentina.
Q:
Which of the following is the goal of the Caribbean Single Market and Economy?
A.To remove all trade barriers between member nations in practice
B.To establish a political union
C.To adopt a common currency
D.To harmonize macroeconomic and monetary policy between member-states
E.To establish an economic union
Q:
Which of the following refers to an association of English-speaking Caribbean states that are attempting to establish a customs union?
A.CARICOM
B.Central American Free Trade Agreement
C.Central American Common Market
D.Free Trade Area of the Americas
E.Caribbean Single Market and Economy
Q:
Which of the following is the aim of the Central America Free Trade Agreement?
A.Lowering of trade barriers between the United States and the Central American Common Market countries
B.Elimination of trade barriers between the CARICOM and Central American Common Market countries
C.Reduction of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries
D.Introduction of a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua
E.Reductions in tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua
Q:
The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the:
A.Central American Free Trade Agreement.
B.Central American Common Market.
C.Free Trade Area of the Americas.
D.CARICOM.
E.Caribbean Single Market and Economy.
Q:
Which of the following led to the collapse of the Central American Common Market in 1969?
A.Devaluation of the Brazilian currency by 40 percent
B.A coup in Nicaragua that led to the overthrow of the incumbent regime
C.War between Honduras and El Salvador after a riot at a soccer match between teams from the two countries
D.Withdrawal from the trade arrangement by Costa Rica
E.Collapse of monetary policy between Costa Rica and El Salvador
Q:
Which of the following refers to a trade pact among Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, which began in the early 1960s but collapsed in 1969 due to war?
A.Central American Common Market
B.Free Trade Area of the Americas
C.Caribbean Single Market and Economy
D.Mercosur
E.CARICOM
Q:
Which of the following is a reason why Mercosur was temporarily suspended in 2001?
A.The dotcom bust in Paraguay
B.An economic crisis in Argentina
C.The exit of Uruguay from the group
D.The devaluation of the Mexican peso
E.The Venezuelan financial crisis
Q:
Which of the following is true of Alexander Yeats's criticism of the Andean Pact?
A.He pointed out that the slowest growing items in intra-Mercosur trade were cars, buses, agricultural equipment, and other capital-intensive goods.
B.He believed that the trade creation effects of Mercosur outweighed its trade diversion effects.
C.He felt that Mercosur countries were prepared to compete globally once the group's external trade barriers came down.
D.He pointed out that Mercosur countries were insulated from outside competition by tariffs that run as high as 70 percent of value.
E.He felt that capital was being drawn toward more efficient enterprises.
Q:
Which of the following refers to a pact that originated in 1988 to establish a free trade area now including Argentina, Brazil, Paraguay, and Uruguay?
A.ASEAN
B.NAFTA
C.Mercosur
D.CARICOM
E.CAFTA
Q:
The Andean Community now operates as a(n):
A.common market.
B.economic union.
C.customs union.
D.command economy.
E.political union.
Q:
Which of the following is true of the Andean Pact during the mid-1980s?
A.Tariff-free trade existed between member countries.
B.Harmonization of economic policies between member countries had been achieved.
C.Successful integration of member economies had been achieved.
D.The Pact had failed to achieve the objective of a common external tariff.
E.The dominant political ideology in many of the Andean countries tended toward democracy.
Q:
Which of the following is true of the Andean Pact of 1969?
A.Political and economic problems seem to have hindered cooperation among member countries of the Andean Pact.
B.By the mid-1980s, the Andean Pact achieved most of its stated objectives.
C.The dominant political ideology in many of the Andean countries tended toward the democratic end of the political spectrum.
D.The Galpagos Declaration effectively replaced the Andean Pact in 1997.
E.The Andean Pact sought to remove a common external tariff.
Q:
Which of the following refers to a 1969 agreement among Bolivia, Chile, Ecuador, Colombia, and Peru to establish a customs union?
A.Andean Pact
B.ASEAN
C.Mercosur
D.CARICOM
E.Caribbean Single Market and Economy
Q:
Which of the following is a major issue confronting the North American Free Trade Agreement?
A.Economic stability
B.Reduction in purchasing power
C.Political stability
D.Expanding the membership of the agreement
E.Lack of resources
Q:
Which of the following is a significant impact of the North American Free Trade Agreement (NAFTA)?
A.It led to decreased economic stability in Canada.
B.It led to a major trade deficit for Canada.
C.It helped create the background for increased political stability in Mexico.
D.It led to a trade surplus for all the three member nations.
E.It led to a reduction in purchasing power of consumers in America.
Q:
An argument against the North American Free Trade Agreement centered on the fear that ratification would result in:
A.low interest rates in the Unites States and Canada.
B.mass exodus of jobs from the United States into Mexico.
C.a move toward a common currency for NAFTA member nations.
D.competition from the members of the European Union.
E.high inflation in the United States and Canada.
Q:
Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?
A.Low-skilled jobs will be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada.
B.Increased imports from Mexico will help reduce the huge trade deficit for United States and Canada.
C.Lower incomes of the Mexicans would allow them to import fewer U.S. and Canadian goods, thereby decreasing demand.
D.A large number of Mexican firms will hire low-skilled workers from the United States.
E.Some U.S. and Canadian firms would move production to Mexico to take advantage of lower labor costs.
Q:
Which of the following is true of the provisions of the North American Free Trade Agreement?
A.It does not allow financial institutions unrestricted access to the Mexican market.
B.It abolishes special treatment (protection) given to Mexican energy and railway industries.
C.It allows lowering of national environmental standards to lure investment.
D.It seeks the removal of most barriers on the cross-border flow of services.
E.It does not deal with the protection of intellectual property rights.
Q:
Which of the following is true of the criteria to qualify for membership to the European Union?
A.The applicants were not required to privatize state assets.
B.The applicants were not required to adopt EU laws.
C.The applicants were required to tame inflation.
D.The applicants were required to refrain from restructuring industries.
E.The applicants were required to prevent deregulation of markets.
Q:
Which of the following refers to a permanent bailout fund, worth about €500 billion, set up by the euro zone nations to restore confidence in the euro?
A.European Fiscal Union
B.European Fiscal Compact
C.Troubled Assets Relief Program
D.European Stability Mechanism
E.European Financial Stability Facility
Q:
Which of the following is true of the euro since its establishment in 1999?
A.The value of the euro has been stable against the U.S. dollar.
B.The euro's value has steadily appreciated against the U.S. dollar.
C.The euro's value initially appreciated and then steadily depreciated against the U.S. dollar.
D.The euro has had a volatile trading history against the U.S. dollar.
E.The value of the euro has been constant when compared to the U.S. dollar.
Q:
Similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy in a(n):
A.managed currency zone.
B.open exchange regime.
C.optimal currency area.
D.free trade area.
E.advanced monetary zone.
Q:
Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone?
A.The dollar peg advocated by some members of the European Union
B.The implied loss of national sovereignty to the European Central Bank
C.The volatility of the euro
D.The reluctance to compete directly against the U.S. dollar
E.The reluctance to be considered an optimal currency area
Q:
The Maastricht Treaty called for:
A.establishment of the independent European Central Bank (ECB).
B.the abolition of restrictions on cabotage.
C.establishment of the European Parliament.
D.the formation of a single market for the European Union.
E.placing restrictions on foreign exchange transactions between member countries.
Q:
Which of the following is a drawback of adopting the euro?
A.Loss of control over national monetary policy
B.Increase in the cost of capital
C.Reduction in the liquidity of capital markets
D.Reduction of price differentials within the euro zone
E.Loss of investment options open to both individuals and institutions
Q:
Over time the euro will impact the pan-European capital market by leading to:
A.an increase in the cost of capital.
B.a decline in the overall level of savings and investment.
C.an increased efficiency with which investment funds are allocated.
D.reduced liquidity in the market.
E.reduced competition among European producers.
Q:
A key advantage of adopting the euro is that it:
A.helps in reduction of competition in Europe.
B.has prevented the development of a highly liquid pan-European capital market.
C.lowers foreign exchange and hedging costs in Europe.
D.insulates Europe from international competition.
E.increases the range of investment options open to institutions only.
Q:
A benefit of adopting the euro as a common currency is that it:
A.makes it easier to compare prices across Europe.
B.makes Europe an optimal currency area.
C.increases the range of investment options open only to institutions.
D.leads to higher prices, which translate into substantial gains for European producers.
E.decreases competition because it has become harder for consumers to shop around.
Q:
Establishment of the euro required participating national governments to:
A.have a sound fiscal situation.
B.have stable exchange rates.
C.be democratic in nature.
D.give up control over monetary policy.
E.have a high degree of price stability.
Q:
Which of the following countries has adopted the euro as its currency?
A.Great Britain
B.France
C.Denmark
D.Sweden
E.Switzerland
Q:
Which of the following comprises the euro zone?
A.The 27 member nations of the European Union
B.The member nations of the European Union and the applicants to the union
C.The 18 member nations who use the euro as their currency
D.The member nations of the European Union and countries who have pegged their currencies to the euro
E.The 21 member nations that have their members in the European Parliament
Q:
Which of the following treaties committed European Community members to adopt a common currency by January 1, 1999?
A.The Maastricht Treaty
B.The Treaty of Rome
C.The Treaty of Lisbon
D.The Montreal Treaty
E.The Treaty of Paris
Q:
What is franchising?
Q:
What are the different types of industries for which licensing is not a good option?