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1 | |
In a _________, all barriers to the trade of goods and services among member countries are removed. |
|
| | A) | free trade area |
| | B) | customs union |
| | C) | common market |
| | D) | economic union |
| | E) | political union |
|
2 | |
The agreement between Norway, Iceland, Liechtenstein, and Switzerland is a |
|
| | A) | free trade area |
| | B) | customs union |
| | C) | common market |
| | D) | economic union |
| | E) | political union |
|
3 | |
When a group of countries is committed to no barriers to trade between member countries, a common external trade policy, and allows factors of production to move freely between members, the countries form a |
|
| | A) | free trade area |
| | B) | customs union |
| | C) | common market |
| | D) | economic union |
| | E) | political union |
|
4 | |
MERCOSUR hopes to establish itself as a |
|
| | A) | free trade area |
| | B) | customs union |
| | C) | common market |
| | D) | economic union |
| | E) | political union |
|
5 | |
When high-cost domestic producers are replaced by low-cost foreign producers in a free trade area |
|
| | A) | free trade has occurred |
| | B) | there is trade creation |
| | C) | there is trade diversion |
| | D) | economic integration has taken place |
| | E) | WTO policies have been broken |
|
6 | |
The body that is responsible for proposing EU legislation, implementing it, and monitoring compliance is the |
|
| | A) | European Council |
| | B) | European Parliament |
| | C) | Council of the European Union |
| | D) | Court of Justice |
| | E) | European Commission |
|
7 | |
The euro is expected to be beneficial for all of the following reasons except |
|
| | A) | it creates an optimal currency area |
| | B) | businesses and individuals will realize significant savings from having to handle one currency rather than many |
| | C) | the adoption of a common currency will make it easier to compare currencies across Europe |
| | D) | European companies should experience efficiency gains |
| | E) | It should boost the development of a highly liquid pan-European capital market |
|
8 | |
In order to be considered for membership in the European Union, applicants had to do all of the following except |
|
| | A) | privatize state assets |
| | B) | deregulate markets |
| | C) | establish stable democratic governments |
| | D) | respect human rights |
| | E) | convert to the euro |
|
9 | |
The Andean Community is a _____________. |
|
| | A) | free trade area |
| | B) | customs union |
| | C) | common market |
| | D) | economic union |
| | E) | political union |
|
10 | |
The Asia-Pacific Cooperation (APEC) is made up of all of the following countries except |
|
| | A) | Japan |
| | B) | the United States |
| | C) | China |
| | D) | Chile |
| | E) | Myanmar |
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11 | |
Agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services and factors of production between each other are known as regional economic integration. |
|
| | A) | True |
| | B) | False |
|
12 | |
Regional economic integration among countries is on the decline. |
|
| | A) | True |
| | B) | False |
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13 | |
The European Union is an economic union. |
|
| | A) | True |
| | B) | False |
|
14 | |
Nations may integrate their economies in an effort to gain from the free flow of trade between countries. |
|
| | A) | True |
| | B) | False |
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15 | |
Typically, everyone is a winner as a result of economic integration. |
|
| | A) | True |
| | B) | False |
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16 | |
When a low cost external supplier replaces a high cost supplier within a free trade area there is trade creation. |
|
| | A) | True |
| | B) | False |
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17 | |
A key disadvantage of the euro is the loss of control over monetary policy by individual countries. |
|
| | A) | True |
| | B) | False |
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18 | |
Since its establishment in 1999, the euro has had a stable trading history with the U.S. dollar. |
|
| | A) | True |
| | B) | False |
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19 | |
As a result of NAFTA the U.S. lost a significantly greater number of jobs than the country gained. |
|
| | A) | True |
| | B) | False |
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20 | |
The lowering of trade and investment barriers through regional economic integration typically leads to increased prices competition with the region. |
|
| | A) | True |
| | B) | False |