Deck 10: Europe, Africa, and the Middle East

Question 1

In line with its goal of enlargement, ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007.

Answer 1

True

Question 2

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.

Answer 2

True

Question 3

Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.

Answer 3

True

Question 4

An important objective of the member countries of the United Nations is bringing about mutual economic development.

Question 5

Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit.

Question 6

The WTO primary purpose is making trade more profitable for emerging economies.

Question 7

A commonwealth of nations is an organization providing for the strongest possible economic integration relationship.

Question 8

At the most general level, the WTO represents the most important and comprehensive trade agreement in history.

Question 9

In the Amsterdam Treaty, the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.

Question 10

All three Baltic states started off with the same legacy of efficient industry and American-style capitalist economies.

Question 11

The importance of political unity to fully achieve all the benefits of economic integration drove European countries to form the World Trade Organization (WTO).

Question 12

Historically, standards have been used to effectively increase market access, such as the sale of German beer in Italy.

Question 13

The most basic level of economic integration and cooperation is the geographical local federation (GLF).

Question 14

The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty.

Question 15

A customs union is the most fully integrated form of regional cooperation.

Question 16

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.

Question 17

The blueprint for the European Union began with the Treaty of Rome in 1957.

Question 18

The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC).

Question 19

A free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services.

Question 20

The decisions of the European Court of Justice are not final, but can be appealed in national courts.

Question 21

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.

Question 22

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

Question 23

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.

Question 24

The initial aim of a multinational market is to protect businesses that operate within its borders.

Question 25

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.

Question 26

The first Soviet republics to declare independence were the Baltic states.

Question 27

The Commonwealth of Independent States is a loose economic and political alliance with open borders but no central government.

Question 28

Economic growth among African countries has been on the downswing for the past several years.

Question 29

What is one of the multilateral free trade agreements signed by the United States?

A) CETA
B) NAFTA
C) NATO
D) MERCOSUR
E) LAFTA

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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.

Question 36

Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD), have renamed their regional group the Economic Cooperation Organization (ECO).

Question 37

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).

Question 38

The Southern African Development Community is the most advanced and viable of Africa's regional organizations.

Question 39

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.

Question 40

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

Question 41

The ________ Treaty created the European Union with 12 nations.

A) Kent
B) Paris
C) Rome
D) Cannes
E) Maastricht

Question 42

Which treaty allows for the free movement of goods, persons, services, and capital throughout the member states of the European community?

A) Rome Treaty
B) Berlin Treaty
C) Maastricht Treaty
D) Barcelona Treaty
E) Athens Treaty

Question 43

The Treaty of ________ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers.

A) Kent
B) Paris
C) Rome
D) Cannes
E) Maastricht

Question 44

A ________ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.

A) preferential trade area
B) currency union
C) regional cooperation for development
D) customs union
E) free trade area

Question 45

What type of political union is mostly based on economic history and a sense of tradition?

A) conglomerate
B) community
C) commonwealth
D) proprietary colony
E) trade association

Question 46

Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the

A) Newly Independent States.
B) Economic Community of West African States.
C) Commonwealth of Independent States.
D) European Union.
E) Trans-Pacific Union.

Question 47

What was a customs union before becoming a common market?

A) NAFTA
B) DR-CAFTA
C) Israel-Mexico Free Trade Agreement
D) the European Union
E) South Asian Free Trade Area

Question 48

A ________ involves complete political and economic integration, either voluntary or enforced.

A) political union
B) common market
C) regional cooperation for development (RCD)
D) customs union
E) free trade area (FTA)

Question 49

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.

Question 50

A ________ is an intermediate step in the transition from a free trade area to a common market.

A) political union
B) currency union
C) regional cooperation for development (RCD)
D) customs union
E) preferential trade area

Question 51

Which level of economic integration has no restrictions on internal trade and free flow of capital among member nations and lacks only political unity to become a political union?

A) common market
B) free trade area
C) regional cooperation group
D) customs union
E) preferential trade agreement

Question 52

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

Question 53

A free trade area (FTA) provides its members with

A) complete political integration.
B) a mass market without trade barriers among partner countries.
C) a regional cooperation for social development.
D) a common market that eliminates all external tariffs.
E) a market that offsets higher nontrade barriers with lower external tariff.

Question 54

Britain and countries that were formerly part of the British Empire are an example of a ________ of nations.

A) autarchy
B) monocracy
C) commonwealth
D) proprietary colony
E) trade association

Question 55

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).

Question 56

What is true of the Maastricht Treaty?

A) It serves as a deterrent for the political unification of the European countries.
B) It restricts movement of goods between the United Kingdom and France.
C) It allows for the free movement of persons between the United States and Canada.
D) It allows for the free movement of goods throughout the member states of the European Union.
E) It is the first European treaty whose terms have been universally accepted.

Question 57

The most fully integrated form of regional cooperation is a

A) political union.
B) common market.
C) regional cooperation for development (RCD).
D) customs union.
E) free trade area (FTA).

Question 58

A ________ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.

A) preferential trade agreement
B) common market
C) regional cooperation for development
D) customs union
E) free trade area

Question 59

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

Question 60

Though now disbanded, what agreement was considered to be the most notable enforced political union of the last 40 years?

A) NATO
B) NAFTA
C) MERCOSUR
D) COMECON
E) LAFTA

Question 61

The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the

A) COMECON.
B) European Free Trade Area.
C) European Economic Area.
D) European Union.
E) Trans-Pacific Union.

Question 62

What long-term challenge is the European Union facing?

A) eliminating all tariffs on internal trade amongst member nations
B) establishing a common currency for the Union
C) including Asia into the Union
D) limiting the political aspects of the Union
E) finding ways to contract the Union

Question 63

With the expansion of the European Union, existing members fear

A) retaliation by the Soviet Union against them.
B) a flood of cheap labor into their countries.
C) that OPEC will cut off supplies to countries supporting the expansion of the European Union.
D) free movement of capital amongst the member nations.
E) that they would need to close the borders between member nations.

Question 64

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing postcommunist market reforms. As a result,

A) the region is against establishing free markets.
B) new business opportunities are emerging in this region.
C) all of the eastern European countries can be viewed as one entity.
D) all of these countries have the same level of cultural assimilation.
E) all of these countries have had the same success in economic reform and growth.

Question 65

Which EU institution drafted the Maastricht Treaty that was presented to the European Union member states for ratification?

A) the United Nations
B) the World Trade Organization
C) the European Commission
D) the Commonwealth Delineation
E) the Council of Ministers

Question 66

The various legal instruments used by the European Union

A) issue regulations that are binding against the member states if the national courts of the member states agree to the regulations.
B) must confer with the United Nations before issuing directives against member states.
C) direct all disputes involving the European Union law to the International Court of Justice.
D) have the authority to issue regulations that bind the member states directly.
E) require the approval of individual nations to address binding decisions against an enterprise of that nation.

Question 67

The European ________ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies.

A) Parliament
B) Committee of the Regions
C) Commission
D) Court of Auditors
E) Court of Justice

Question 68

One of the long-term challenges facing the European Union in the next 50 years is

A) deciding about further enlargement.
B) creation of a common currency.
C) reducing the free flow of capital between its member nations.
D) deciding on how to control the individualistic European population.
E) establishing a court that would settle the disputes among member nations.

Question 69

Which statement is true about the European Parliament?

A) It has extensive budgetary powers that allow it to be involved in major EU expenditures.
B) It serves as a purely consultative body.
C) It is responsible for debating and deciding which proposals of the Single European Act to accept as binding on EU members.
D) It initiates policy and supervises its observance by member states.
E) It is responsible for challenging any measures incompatible with the Treaty of Rome.

Question 70

The institutions of the European Union form a(n) ________ pattern.

A) bilateral
B) unitary
C) federal
D) provincial
E) global

Question 71

What is true of the European Court of Justice?

A) It initiates policy and supervises its observance by member states.
B) Its decisions require approval by the top three nations of the European Union.
C) Its decisions are final and cannot be appealed in national courts.
D) It primarily has a consultative role in interpreting the nuances of the EU law.
E) It can amend and adopt Union legislation.

Question 72

Which country rejected the euro, causing a debate about the EU's future?

A) Austria
B) Greece
C) Finland
D) Denmark
E) Spain

Question 73

The ________ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members.

A) Treaty of Rome
B) Single European Act
C) Maastricht Treaty
D) Expansion Act
E) Amsterdam Treaty

Question 74

Which institution has the responsibility to debate and decide which proposals of the Single European Act to accept as binding on European Union members?

A) the European Commission
B) the European Parliament
C) the Council of Ministers
D) the European Court of Justice
E) the European Committee of the Regions

Question 75

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of

A) capitalism.
B) autocracy.
C) Marxist-socialism.
D) despotism.
E) communism.

Question 76

The parameters of the creation of a common currency for the European Union were established by

A) the Economic and Monetary Union provision of the Maastricht Treaty.
B) the Single Currency provision of the Treaty of Rome.
C) the Enhanced Cooperation provision of the Treaty of Utrecht.
D) the Economic Union provision of the Treaty of Vienna.
E) the Free Trade provision of the Anglo-Irish Treaty.

Question 77

The ________ is the decision-making body of the European Union that can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote.

A) United Nations
B) World Trade Organization
C) European Commission
D) Commonwealth of Independent States
E) Council of Ministers

Question 78

The Economic and Monetary Union provision of the Maastricht Treaty established the parameters for the creation of the

A) dollar.
B) pound.
C) rupee.
D) ruble.
E) euro.

Question 79

Which European Union institution originally had only a consultative role but can now amend and adopt Union legislation?

A) the European Parliament
B) the Council of Ministers
C) the Court of Justice
D) the European Commission
E) the European Central Bank

Question 80

Which EU institution is responsible for challenging any measures incompatible with the Treaty of Rome and for passing judgment, at the request of a national court, on the interpretation or validity of points of European Union Law?

A) the International Court of Justice
B) the European Court of Justice
C) the International Criminal Court
D) the European Common Judicial Council
E) the European Security Council