Deck 10: Europe, Africa, and the Middle East

Question 1

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

Answer 1

True
Explanation: A free trade area provides its members with a mass market without barriers to impede the flow of goods and services.

Question 2

The CIS is a loose economic and political alliance with open borders but no central government.

Answer 2

True
Explanation: The CIS is a loose economic and political alliance with open borders but no central government.

Question 3

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

Answer 3

False
Explanation: The Commonwealth of Independent States (CIS) was formed by the republics of the former Soviet Union, and the European Union (EU).

Question 4

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

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

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

Question 7

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

Question 8

The European Union is a good example of a free trade area.

Question 9

The political union is the most fully integrated form of regional cooperation.

Question 10

The WTO is wholly dedicated toward making trade among nations more efficient.

Question 11

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

Question 12

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

Question 13

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

Question 14

was that 12 members of the European community agreed to an economic but not political union.

Question 15

The WTO represents the most important and comprehensive trade agreement in history.

Question 16

The Baltic States had a history of a free trade regime.

Question 17

Ten new countries joined the EU in 2004 followed by Bulgaria and Romania in 2007.

Question 18

Europe and Asia had a trade group that emerged and persisted since the dissolution of the Soviet Union called the Newly Independent States.

Question 19

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

Question 20

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

Question 21

Essentially, a free trade area (FTA) provides its members with:

A) a political union.
B) a mass market without barriers.
C) a regional cooperation for social development.
D) customs unionization.
E) border crossing without passports.

Question 22

As George Platt examines markets that might match his company's investment requirements; he is particularly struck by the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt examining when he reviews transportation networks?

A) Cultural factors
B) Trade factors
C) Political factors
D) Geographic proximity
E) Economic factors

Question 23

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

A) parallel
B) divergent
C) rigid
D) profitable
E) complementary

Question 24

The Middle East has been very aggressive in forming multinational market groups.

Question 25

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

A) NAFTA
B) Amsterdam Treaty
C) MERCOSUR
D) WTO
E) ASEAN

Question 26

The most basic economic integration and cooperation is the:

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

Question 27

The Arab Gulf states, Egypt, and Morocco have worked out an agreement on an Arab Free Trade Area, sometimes called the Gulf Arabian Free Trade Area (GAFTA).

Question 28

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

Question 29

One of the first factors that gave the EU an edge over others in the process of becoming a common market was/were:

A) similarity in agriculture and monetary policy.
B) political factors.
C) similarities in language.
D) a well developed transportation network.
E) a common currency

Question 30

The World Trade Organization is wholly dedicated to ____.

A) the expansion of capitalism
B) the elimination of language barriers in trade
C) free and open national borders
D) the enforcement of international anti-bribery laws
E) making trade among nations more efficient

Question 31

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

Question 32

_____ is a comprehensive trade agreement that addresses, and in most cases improves, all aspects of doing business within North America.

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

Question 33

Regional economic cooperative agreements have been around since:

A) the discovery of the New World.
B) the American Revolution.
C) the American Civil War.
D) the end of World War I.
E) the end of World War II.

Question 34

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 35

With respect to political factors, which of the following is one of the most cherished possessions of any nation?

A) A two party system
B) A three party system
C) A high voting rate
D) State sovereignty
E) A benevolent upper class

Question 36

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions?

A) Preferential tariff treatment for participating members
B) A common economic defense force with costs shared by all members
C) Formulation of cartels
D) Seeking economic dominance through boycotts of rivals
E) Movement towards a common language as a means to overcoming economic hurdles

Question 37

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

Question 38

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which single market is being talked about?

A) European Commission
B) The European Economic Community
C) The European Steel and Coal Community
D) The European Union
E) The European Community

Question 39

An expressed goal of a multinational market is to give an advantage to the companies within the market in their dealings with other countries of the market group.

Question 40

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 tradition of monarchy and feudalism
E) a democratic background and heritage

Question 41

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

Question 42

Many international trade experts have marveled at how members of the European Union have overcome ____, ____, and _____ differences.

A) marketing; management; promotional
B) energy; political; geographical
C) cultural; legal; social
D) time zone; coastal; religious
E) language; educational; technological

Question 43

A _____ is the intermediate step between a free trade area and a common market.

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

Question 44

The introduction of euro banknotes and coins facilitated:

A) international corruption.
B) political dialogue.
C) market exchanges.
D) industrial production.
E) international promotion.

Question 45

A _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration.

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

Question 46

Before becoming a common market, the European Union was a ____.

A) free trade area
B) customs union
C) political union
D) regional cooperation group
E) economic union

Question 47

The European Community uses several forms of legal instruments. Which of the following has the effect of binding member states but allowing them to choose the means of execution?

A) Regulations
B) Decisions
C) Codes
D) Directives
E) Specifications

Question 48

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

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

Question 49

Which of these levels of economic integration lacks only political unity to become a political union?

A) Common market
B) Free trade area
C) Regional cooperation group
D) Customs union
E) Trade friendly zone

Question 50

Warren wants to market his products in the three largest European Union countries. He would market his products in:

A) Germany, France, and the United Kingdom
B) France, Spain, and Italy
C) United Kingdom, Ireland, and Italy
D) Sweden, Norway, and Finland
E) Spain, Austria, and Germany

Question 51

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

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

Question 52

The most fully integrated form of regional cooperation is called a:

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

Question 53

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

Question 54

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

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

Question 55

Though now disbanded, which of the following was considered to be the most notable enforced political union of the last forty years?

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

Question 56

The institutions of the European Union form a _____ pattern.

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

Question 57

The _____ is the decision-making body of the EU and 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 Delineation
E) Council of Ministers

Question 58

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 59

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

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

Question 60

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

A) NAFTA accords.
B) NATO accords.
C) United Nations.
D) European Union.
E) Trans-Pacific Union.

Question 61

The official European Union abbreviation for the euro is ____.

A) E
B) EUR
C) Euro
D) E$
E) EU

Question 62

The European Union is anxious to admit new members; however, there have been problems. Which of the following problems has been deemed to be the most significant regarding new member admission?

A) The threat of nuclear war
B) The problem of multiple currencies
C) The rise of Asia in the world arena
D) The prospect of illegal immigrants from the former Soviet Union
E) The economic instability of prospective members

Question 63

Most of the problems faced by EU relates to:

A) currency
B) language
C) human rights
D) agriculture and monetary policy
E) border issues.

Question 64

Which agency established the parameters for the creation of the common currency for the EU?

A) Economic policy agency
B) Optimal currency area eurozone
C) Economy of Europe
D) Monetary Union
E) Economic and Monetary Union

Question 65

The European Court of Justice is the European Union's ____.

A) criminal court
B) regional civil court
C) war crimes court
D) Supreme Court
E) judicial court

Question 66

One of the challenges facing the European Union in the next 50 years is ____.

A) deciding how to limit the political aspects of union
B) managing and preserving the value of the euro
C) avoiding isolation from the United Nations
D) the aging European population
E) transitioning to a common language

Question 67

The _____ is the European Union's Supreme Court.

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

Question 68

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

A) capitalism
B) socialism
C) federalism
D) democracy
E) a customs union

Question 69

Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems and:

A) permitting greater government control/intervention.
B) increasing trade barriers.
C) relaxing import controls.
D) making import controls stringent.
E) switching over to a socialist economy.

Question 70

With the expansion of the European Union, existing members fear:

A) retaliation against members by the Soviet Union.
B) a flood of cheap labor into their countries.
C) OPEC will cut off supplies to countries supporting expansion of the EU.
D) new political leaders will overwhelm the existing leadership.
E) dilution of the Euro.

Question 71

The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the ____.

A) UNDP
B) OECD
C) WTO
D) EU
E) APEC

Question 72

and established procedures for expansion to Central and Eastern Europe?

A) Versailles Treaty
B) London Treaty
C) Amsterdam Treaty
D) Monaco Treaty
E) Paris Treaty

Question 73

Yugoslavia has been facing internal strife due to:

A) land issues
B) class war
C) high inflation
D) economic recession
E) ethnic strife

Question 74

Europe and some of the Baltic states have switched over to a(n) _____ economy.

A) protected
B) open market
C) command
D) traditional
E) mixed

Question 75

Government bureaucracy, corruption and organized crime are common problems found in ____.

A) Latin America
B) United States
C) China
D) former soviet union
E) Japan

Question 76

The _____ increases the authority of the institutions of the EU 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) NAFTA
E) Amsterdam Treaty

Question 77

.

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

Question 78

Which is the trade group that is part of Europe and Asia that has emerged and persisted since the dissolution of the Soviet Union?

A) The European Union East
B) The Commonwealth of Independent States
C) The Eastern Bloc Economic Area
D) The European Free Trade Association
E) The Euro-Soviet Union

Question 79

Improving economic performance, deciding how to limit political aspects and deciding about further enlargement are all the long term challenges faced by the ____.

A) APEC
B) NAFTA
C) European Union
D) ASEAN
E) LAIA

Question 80

The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation.

A) Court of Justice
B) European Parliament
C) Council of Ministers
D) European Commission
E) Legislative Commission