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| 1 | |
By Regional Economic Integration we mean |
| | A) | Agreements among countries in a geographic region |
| | B) | Agreements to remove tariff barriers |
| | C) | Agreements to remove non-tariff barriers |
| | D) | Free flow of goods |
| | E) | All of the previous, combined |
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| 2 | |
This proposed trading bloc includes 26 of the 34 countries in North and South America. |
| | A) | NAFTA |
| | B) | FTAA |
| | C) | EFTA |
| | D) | APEC |
| | E) | MERCOSUR |
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| 3 | |
This trade agreement involves Canada, USA and Mexico. |
| | A) | NAFTA |
| | B) | FTAA |
| | C) | SAFTA |
| | D) | APEC |
| | E) | MERCOSUR |
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| 4 | |
Which of these is the least integrated level of economic integration? |
| | A) | A common market |
| | B) | A free trade area |
| | C) | An economic union |
| | D) | A political union |
| | E) | A customs union |
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| 5 | |
The most enduring free trade area in the world is |
| | A) | NAFTA |
| | B) | FTAA |
| | C) | EFTA |
| | D) | APEC |
| | E) | MERCOSUR |
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| 6 | |
A customs union eliminates trade barriers between member countries and |
| | A) | Has no common external trade policy |
| | B) | Adopts a common internal trade policy |
| | C) | Adopts a common external trade policy |
| | D) | Has no common internal trade policy |
| | E) | Has no common internal trade |
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| 7 | |
This trade agreement involves Argentina, Brazil, Paraguay and Uruguay. |
| | A) | NAFTA |
| | B) | FTAA |
| | C) | SAFTA |
| | D) | APEC |
| | E) | MERCOSUR |
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| 8 | |
To achieve full economic union, the EU introduced ______ to be controlled by a central EU bank |
| | A) | Common passports |
| | B) | Common tax |
| | C) | Common currency |
| | D) | Common tariffs |
| | E) | Common language |
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| 9 | |
Textile workers in Mexico are paid approximately: |
| | A) | $10-$20 a day |
| | B) | $5 an hour |
| | C) | $10 a week |
| | D) | $57 a day |
| | E) | $5 per garment |
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| 10 | |
_______ occurs when high-cost domestic procedures are replaced by low-cost procedures within the free trade area. |
| | A) | Trade creation |
| | B) | FDI |
| | C) | True integration |
| | D) | Trade diversion |
| | E) | Economic union |
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| 11 | |
Which of these occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area? |
| | A) | Trade creation |
| | B) | FDI |
| | C) | True integration |
| | D) | Trade diversion |
| | E) | Economic union |
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| 12 | |
In theory, ______ rules should ensure that a free trade agreement does not result in trade diversion. |
| | A) | NAFTA |
| | B) | EU |
| | C) | WTO |
| | D) | EFTA |
| | E) | MERCOSUR |
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| 13 | |
The EU is a product of: |
| | A) | the devastation of two world wars and the desire for a lasting peace. |
| | B) | too many small sovereign powers in Europe and infighting amongst them. |
| | C) | the threat from Asian economic powers such as Japan and Korea. |
| | D) | the mandates given by GATT and WTO. |
| | E) | the failed effort of EFTA and the desire to fight against NAFTA. |
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| 14 | |
Presently (Q4 2007), _______ countries are part of the EU. |
| | A) | Four |
| | B) | Eight |
| | C) | Twenty-seven |
| | D) | Twelve |
| | E) | Fifteen |
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| 15 | |
The single European Act proposed all of these changes except: |
| | A) | Remove all frontier controls between EC countries. |
| | B) | Apply the principle of "mutual recognition" to product standards. |
| | C) | Retain public procurement for national suppliers. |
| | D) | Remove all restrictions on foreign exchange transactions between member countries by the end of 1992. |
| | E) | Lift barriers to competition in the EC's retail banking and insurance businesses. |
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| 16 | |
All of the following are benefits of the euro except: |
| | A) | significant savings from having to handle one currency. |
| | B) | easier to compare prices across Europe. |
| | C) | produce long-run gains in economic efficiency of European companies. |
| | D) | boost development of a highly liquid pan-European capital market. |
| | E) | eliminate the need for national sovereignty. |
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| 17 | |
Consequences of the Euro: |
| | A) | Drawback of a single currency: national authorities have more control over monetary policy |
| | B) | Drawback of a single currency: national authorities have less control over monetary policy |
| | C) | Drawback of a multiple currency: national authorities have less control over monetary policy |
| | D) | Drawback of a multiple currency: national authorities have more control over monetary policy |
| | E) | Drawback of a single currency: national authorities have less control over fiscal policy |
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| 18 | |
The contents of the NAFTA agreement included all of these except: |
| | A) | abolition of tariffs within 10 years on 99 percent of the goods traded between the U.S., Mexico, and Canada. |
| | B) | protection of intellectual property rights. |
| | C) | application of national environmental standards. |
| | D) | creation of a single currency by 2002. |
| | E) | removal of most restrictions on FDI. |
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| 19 | |
Which of the following will be one likely short-term impact of NAFTA? |
| | A) | Many Mexican firms will move their production facilities to the United States. |
| | B) | Many U.S. firms will move their production facilities to Canada. |
| | C) | Many U.S. and Canadian firms will move some production to Mexico. |
| | D) | Many Canadian firms will move their production to the United States. |
| | E) | Many firms will move their facilities to Europe. |
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| 20 | |
When the _______ was signed in 1969 by Bolivia, Chile, Ecuador, Columbia, and Peru, the Andean Pact was formed. |
| | A) | Maastricht Treaty |
| | B) | Cartagena Agreement |
| | C) | Treaty of Rome |
| | D) | MERCOSUR Pact |
| | E) | EFTA Agreement |
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| 21 | |
MERCOSUR originated in 1988 as a free trade pact between: |
| | A) | Chile and Peru. |
| | B) | Japan and Korea. |
| | C) | Ecuador and Columbia. |
| | D) | Brazil and Argentina. |
| | E) | Bolivia and Peru. |
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| 22 | |
Cambodia, Indonesia, Laos, Malaysia, Vietnam and others formed |
| | A) | APEC |
| | B) | ASEAN |
| | C) | MERCOSUR Pact |
| | D) | Asian EFTA Agreement |
| | E) | Ac-SOUR |
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| 23 | |
Currently, the most significant developments in regional economic integration are occurring in: |
| | A) | APEC and FTAA. |
| | B) | ASEAN and APEC. |
| | C) | the African and Latin American trading blocs. |
| | D) | MERCOSUR and NAFTA. |
| | E) | NAFTA and the EU. |
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