Question 1

Which of the following occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area?

Accepted Answer

A)  Trade correction
B)  Trade balancing
C)  Trade creation
D)  Trade diversionE) B) and C)
F) B) and D)

Question 2

Which term refers to the right of foreign truckers to pick up and deliver goods within another member state's borders?

Accepted Answer

A)  Affreightment
B)  Cabotage
C)  Advanced Charge
D)  ZoningE) A) and D)
F) B) and C)

Question 3

Three countries enter into an agreement to remove all tariffs and barriers for trade between them.They decide on a common trade policy with regard to nonmembers.Faced with political backlash,the countries stop short of allowing mobility of factors of production such as labor and capital.Which of the following best describes this arrangement?

Accepted Answer

A)  Political union
B)  Customs union
C)  Common market
D)  Economic unionE) A) and B)
F) A) and C)

Question 4

Which of the following helps explain the increase in value of the euro against the U.S.dollar in the years leading to 2008?

Accepted Answer

A)  Fall in U.S.financial markets leading to reduced fund inflows into that country.
B)  All-time high interest rate in the euro zone leading to fund flows into the region.
C)  Failure and bail-out of financial institutions in countries like Greece and Portugal.
D)  Concerns over slow economic growth and growing budget deficits among several EU member states.E) B) and C)
F) A) and C)

Question 5

The North American Free Trade Agreement (NAFTA)refers to the free trade area between Canada,Mexico,and the United States.

Accepted Answer

A) True 
 B)False

Question 6

In practice,the European Commission is responsible for implementing all aspects of EU law.

Accepted Answer

A) True 
 B)False

Question 7

Bolivia,Chile,Ecuador,Colombia,and Peru signed an agreement in 1969 to create the:

Accepted Answer

A)  Andean Pact.
B)  Rim Pact.
C)  South American Group.
D)  FTAA.E) A) and B)
F) B) and C)

Question 8

Which treaty,signed in December 2007,increased the power of the European Parliament?

Accepted Answer

A)  The Maastricht Treaty
B)  The Treaty of Rome
C)  The Treaty of Lisbon
D)  The Single European ActE) A) and B)
F) All of the above

Question 9

Differentiate between a free trade area and a customs union.Provide an example of each form of economic integration.

Accepted Answer

In a free trade area,all barriers to the...

Question 10

The customs union CARICOM applied to:

Accepted Answer

A)  East Asian nations.
B)  Middle Eastern nations.
C)  Central American nations.
D)  Caribbean nations.E) B) and C)
F) All of the above

Question 11

Name the four institutions that formulate and implement economic policies of the EU and describe their roles.

Accepted Answer

The four main institutions are the Europ...

Question 12

Which of the following illustrates the costs associated with regional economic integration?

Accepted Answer

A)  Americans suffer job losses when technology support work is outsourced to cheaper locations in countries such as IndiA.
B)  Due to the establishment of NAFTA,Canadian workers in the textile industry lost their jobs as Canadian firms moved production to Mexico.
C)  The euro is now used by 16 of the 27 member states of the European Union,with some countries opting to retain their national currencies.
D)  The Andean Pact was largely based on the EU model,but was far less successful at achieving its stated goals.E) B) and C)
F) None of the above

Question 13

A notable trend in the global economy in recent years has been the accelerated movement toward regional economic integration.

Accepted Answer

A) True 
 B)False

Question 14

In December 2002,the EU formally indicated that it would allow _____ application to proceed with no further delay in December 2004 if the country improved its human rights record to the satisfaction of the EU.

Accepted Answer

A)  Romania's
B)  Turkey's
C)  Bulgaria's
D)  Serbia'sE) A) and D)
F) A) and B)

Question 15

Which of the following makes it harder for euro zone exporters to sell their goods abroad?

Accepted Answer

A)  A robust Asian economy
B)  A strong European market
C)  A strong dollar
D)  A strong euroE) All of the above
F) None of the above

Question 16

A common currency differentiates a common market from a customs union.

Accepted Answer

A) True 
 B)False

Question 17

Which three countries implemented the NAFTA?

Accepted Answer

A)  Panama,Mexico,and the United States
B)  Canada,Brazil,and the United States
C)  United States,Argentina,and Mexico
D)  Canada,Mexico,and the United StatesE) A) and B)
F) None of the above

Question 18

Before 1993,all European Council issues had to be decided by unanimous agreement between member states.This often impeded the process of reaching agreements.Which legislation formalized the use of majority voting rules on issues "which have as their object the establishment and functioning of a single market?"

Accepted Answer

A)  The Maastricht Treaty
B)  The Treaty of Lisbon
C)  The Treaty of Rome
D)  The Single European ActE) None of the above
F) A) and B)

Question 19

Currently the most significant developments in regional economic integration are occurring in the:

Accepted Answer

A)  ASEAN and APEC.
B)  ASEAN and European Union.
C)  European Union and NAFTA.
D)  Mercosur and NAFTA.E) All of the above
F) A) and D)

Question 20

Differentiate between a common market and an economic union.Provide an example of each form of economic integration.

Accepted Answer

A common market eliminates trade barrier...

Exam 8: Regional Economic Integration

Which term refers to the right of foreign truckers to pick up and deliver goods within another member state's borders?

Correct Answer
verified

The customs union CARICOM applied to:

Correct Answer
verified

Correct Answer
verified

Which of the following illustrates the costs associated with regional economic integration?

Correct Answer
verified

Bolivia,Chile,Ecuador,Colombia,and Peru signed an agreement in 1969 to create the:

Correct Answer
verified

The North American Free Trade Agreement (NAFTA)refers to the free trade area between Canada,Mexico,and the United States.

Correct Answer
verified

In practice,the European Commission is responsible for implementing all aspects of EU law.

Correct Answer
verified

Differentiate between a free trade area and a customs union.Provide an example of each form of economic integration.

Correct Answer
verified
In a free trade area,all barriers to the...
View Answer

Which of the following makes it harder for euro zone exporters to sell their goods abroad?

Correct Answer
verified

A common currency differentiates a common market from a customs union.

Correct Answer
verified

In December 2002,the EU formally indicated that it would allow _____ application to proceed with no further delay in December 2004 if the country improved its human rights record to the satisfaction of the EU.

Correct Answer
verified

Which of the following occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area?

Correct Answer
verified

Name the four institutions that formulate and implement economic policies of the EU and describe their roles.

Correct Answer
verified
The four main institutions are the Europ...
View Answer

Correct Answer
verified

Which treaty,signed in December 2007,increased the power of the European Parliament?

Correct Answer
verified

Which of the following helps explain the increase in value of the euro against the U.S.dollar in the years leading to 2008?

Correct Answer
verified

Which three countries implemented the NAFTA?

Correct Answer
verified

Currently the most significant developments in regional economic integration are occurring in the:

Correct Answer
verified

A notable trend in the global economy in recent years has been the accelerated movement toward regional economic integration.

Correct Answer
verified

Differentiate between a common market and an economic union.Provide an example of each form of economic integration.

Correct Answer
verified
A common market eliminates trade barrier...
View Answer

Exam 8: Regional Economic Integration

Which term refers to the right of foreign truckers to pick up and deliver goods within another member state's borders?

Correct AnswerverifiedShow Answer

The customs union CARICOM applied to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following illustrates the costs associated with regional economic integration?

Correct AnswerverifiedShow Answer

Bolivia,Chile,Ecuador,Colombia,and Peru signed an agreement in 1969 to create the:

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement (NAFTA)refers to the free trade area between Canada,Mexico,and the United States.

Correct AnswerverifiedShow Answer

In practice,the European Commission is responsible for implementing all aspects of EU law.

Correct AnswerverifiedShow Answer

Differentiate between a free trade area and a customs union.Provide an example of each form of economic integration.

Correct AnswerverifiedIn a free trade area,all barriers to the...View AnswerShow Answer

Which of the following makes it harder for euro zone exporters to sell their goods abroad?

Correct AnswerverifiedShow Answer

A common currency differentiates a common market from a customs union.

Correct AnswerverifiedShow Answer

In December 2002,the EU formally indicated that it would allow _____ application to proceed with no further delay in December 2004 if the country improved its human rights record to the satisfaction of the EU.

Correct AnswerverifiedShow Answer

Which of the following occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area?

Correct AnswerverifiedShow Answer

Name the four institutions that formulate and implement economic policies of the EU and describe their roles.

Correct AnswerverifiedThe four main institutions are the Europ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which treaty,signed in December 2007,increased the power of the European Parliament?

Correct AnswerverifiedShow Answer

Which of the following helps explain the increase in value of the euro against the U.S.dollar in the years leading to 2008?

Correct AnswerverifiedShow Answer

Which three countries implemented the NAFTA?

Correct AnswerverifiedShow Answer

Currently the most significant developments in regional economic integration are occurring in the:

Correct AnswerverifiedShow Answer

A notable trend in the global economy in recent years has been the accelerated movement toward regional economic integration.

Correct AnswerverifiedShow Answer

Differentiate between a common market and an economic union.Provide an example of each form of economic integration.

Correct AnswerverifiedA common market eliminates trade barrier...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a free trade area,all barriers to the...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The four main institutions are the Europ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A common market eliminates trade barrier...
View Answer