Question 1

The BRIC nations are:&#10;A) Brazil, Russia, India, and China.&#10;B) Bulgaria, Russia, Istanbul and Chile.&#10;C) Bolivia, Russia, Ireland, and Cyprus.&#10;D) Bahrain, Russia, Iberia, and Ceylon.&#10;E) Botswana, Rwanda, Ivory Coast, and Cameroons.

Accepted Answer

The BRIC nations refer to Brazil, Russia, India, and China, which are known for their significant influence on regional and global affairs.

Question 2

Protectionist policies include all EXCEPT ____________.&#10;A) tariffs&#10;B) martial law&#10;C) quotas&#10;D) non-tariff barriers&#10;E) &#34;buy local&#34; policies

Accepted Answer

Martial law is a military takeover of civilian functions of government, unrelated to economic protectionist policies which are designed to protect domestic industries from foreign competition through measures like tariffs, quotas, non-tariff barriers, and "buy local" policies.

Question 3

A ____________ is an arrangement in which countries give each other preferential treatment by eliminating tariffs and other barriers on goods.&#10;A) customs union&#10;B) common market&#10;C) free trade area&#10;D) reciprocal trade agreement&#10;E) confederation

Accepted Answer

A free trade area is an arrangement where countries agree to eliminate tariffs and other barriers on goods traded among them, giving each other preferential treatment.

Question 4

The most advanced form of a trade bloc is the ________________.&#10;A) free trade area&#10;B) confederation&#10;C) customs union&#10;D) common market&#10;E) reciprocal trade agreement

Accepted Answer

A common market represents the most advanced form of a trade bloc, as it not only allows for the free movement of goods and services (like a customs union) but also for the free movement of capital and labor among member countries.

Question 5

____ has more exports than Japan and Germany.&#10;A) Canada&#10;B) Brazil&#10;C) Columbia&#10;D) India&#10;E) China

Accepted Answer

China has surpassed both Japan and Germany in terms of export volume, making it the world's largest exporter.

Question 6

A monetary union requires at least a __________ and a ______________.&#10;A) common currency; central bank&#10;B) common language; single stock market&#10;C) common currency; single party political system&#10;D) common tax rate; common minimum wage rate&#10;E) common department of agriculture; free trade area

Accepted Answer

A monetary union involves countries adopting a common currency and typically requires a central bank to oversee monetary policy for the member states.

Question 7

The final stage of the integration of countries belonging to a trade bloc is a _______________.&#10;A) reciprocal trade agreement&#10;B) political union&#10;C) customs union&#10;D) common market&#10;E) free trade area

Accepted Answer

The final stage of the integration of countries belonging to a trade bloc is a political union. This stage involves not only economic integration but also political integration, where member countries agree to coordinate their general economic policies and possibly even their government policies, creating a unified political entity in the process.

Question 8

Regional trading blocs such as the EU and NAFTA were established to ___________ trade between the member countries.&#10;A) restrict&#10;B) contain&#10;C) liberalize&#10;D) stagnate&#10;E) ossify

Accepted Answer

Regional trading blocs like the EU (European Union) and NAFTA (North American Free Trade Agreement) were established to liberalize trade between member countries, meaning they aim to reduce trade barriers such as tariffs and import quotas to encourage free trade.

Question 9

The term &#34;emerging markets&#34; refers to _____________.&#10;A) a country that has focused on new innovative or emerging trends&#10;B) a country that has sought more publicity to emerge into the media&#10;C) countries that build consensus&#10;D) encompassing all developing countries&#10;E) a trading bloc that expands its membership

Accepted Answer

Emerging markets refer to countries that are in the process of rapid industrialization and exhibit higher than average growth rates. These are developing countries transitioning towards becoming developed, characterized by their evolving political, economic, and business activities.

Question 10

The concept of fair trade is ______________________.&#10;A) synonymous with free trade&#10;B) requires a market clearing or equilibrium price set by market forces&#10;C) a dynamic of the law of comparative advantage in which countries produce with their strengths&#10;D) the result of lowering barriers to trade and eliminating tariffs&#10;E) an approach to global trade aiming to ensure that producers in developing countries receive a fair price for their products

Accepted Answer

Fair trade is focused on providing equitable trade practices that ensure producers in developing countries are paid fair prices for their goods, contrasting with merely reducing trade barriers or focusing on market-driven prices.

Question 11

What advantages would a marketer gain if a company acquired a subsidiary which is located in a country that was a member of a functioning free trade bloc that the parent firm is not a member of.

Accepted Answer

The answer of What advantages would a marketer gain if...

Question 12

What are the main advantages to the formation of regional blocs affecting market entry?

Accepted Answer

The answer of What are the main advantages to the...

Deck 5: Regional Trade and Emerging Markets