Deck 10: Europe, Africa, and the Middle East

Question 1

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

Answer 1

False
Explanation: The most basic level of economic integration and cooperation is the regional cooperation for development (RCD).

Question 2

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

Answer 2

True
Explanation: At the most general level, the World Trade Organization represents the most important and comprehensive trade agreement in history. However, beyond the WTO, multinational market groups take several other forms, varying significantly in the degree of cooperation, dependence, and interrelationship among participating nations.

Question 3

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

Answer 3

False
Explanation: A political union is the most fully integrated form of regional cooperation. It involves complete political and economic integration, either voluntary or enforced.

Question 4

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

Question 5

The European Union is currently an officially established political union.

Question 6

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

Question 7

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

Question 8

The Council of ministers of the European Union can enact into law all proposals by unanimous vote.

Question 9

One of the chief features of Maastricht Treaty (1992) was that 12 members of the European community agreed to an economic but not political integration.

Question 10

Ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007

Question 11

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

Question 12

The decisions of the European Court of Justice can be appealed in national courts.

Question 13

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

Question 14

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

Question 15

Historically, standards have been used to effectively increase market access.

Question 16

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

Question 17

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

Question 18

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

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

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

Question 21

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 22

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

Question 23

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

Question 24

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 of the following is being referred to here?

A) European Commission.
B) The European Economic Community.
C) The European Steel and Coal Community.
D) The Asia-Pacific Economic Cooperation.
E) The European Community.

Question 25

With the adoption of the euro, price differentials are much easier to spot, and the consumer can search for the best bargains in brand-name products more easily.

Question 26

With respect to political factors that affect supranational markets, 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 27

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 28

Which of the following is one of the bilateral free trade agreements that the United States has?

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

Question 29

Which of the following is the basic requisite for the development of a supranational market arrangement?

A) Political amenability among countries.
B) Business strategy sharing.
C) Adoption of common cultural prejudices.
D) Protection of the market by exercising boycotts.
E) Geographic and temporal proximity among countries.

Question 30

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

Question 31

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

Question 32

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

Question 33

In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.

Question 34

Which of the following 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 35

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

Question 36

Nations with complementary economic bases are least likely to:

A) develop a distinctive monetary system.
B) outweigh individual differences with 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 37

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

Question 38

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 non-profit entity that works together to help the development of under-developed countries.
E) regional trading blocs without trade restrictions internally but with borders protected from outsiders.

Question 39

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

Question 40

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 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) Paris
C) regional cooperation for development (RCD)
D) customs union
E) free trade area (FTA)

Question 42

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 43

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 44

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

A) political union
B) cartel
C) regional cooperation for development (RCD)
D) customs union
E) monopsony

Question 45

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 most likely examining when reviewing transportation networks?

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

Question 46

Which of the following was a customs union before becoming a common market?

A) NAFTA
B) OECD
C) The European Steel and Coal Community
D) The European Union
E) The Council for Mutual Economic Assistance

Question 47

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 48

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 49

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

A) political union
B) a mass market without barriers among partner countries.
C) a regional cooperation for social development.
D) customs unionization.
E) an international market place without customs duties.

Question 50

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 51

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 52

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 53

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 54

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 55

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

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

Question 56

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 57

Which of the following is the weakest of political unions that is mostly based on economic history and a sense of tradition?

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

Question 58

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 policy.
B) a similarity in political systems.
C) a similarity in languages.
D) a well-developed transportation network.
E) a common currency.

Question 59

Which of the following is true of the Maastricht Treaty?

A) It allows for stabilizing currency exchange markets of the member nations.
B) It allows each nation to have its own set of defense policies.
C) It allows the formation of individual judicial systems of its members.
D) The members are committed to a common justice system.
E) It aims at economic consistency alone.

Question 60

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) Hamburg

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

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) United Nations.
D) European Union.
E) Trans-Pacific Union.

Question 63

Which of the following established the parameters of the creation of a common currency for the European Union?

A) The Economic and Monetary Union of the European Union.
B) The Single European Act of the Treaty of Rome.
C) The European Commission of the European Union.
D) The European Common Judicial Council.
E) The European Economic Council.

Question 64

Which of the following 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 65

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

A) UN
B) WTO
C) European Union
D) OPEC
E) SAHK

Question 66

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 67

The _____ is the decision-making body of the European Union 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 of Independent States
E) Council of Ministers

Question 68

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

Question 69

Which of the following European Union institutions originally had only a consultative role, but can now amend and adopt legislation?

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

Question 70

Which of the following countries rejected the euro?

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

Question 71

The final step in the European Community's march to union was the ratification of the _____ Treaty (1992).

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

Question 72

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 the expansion of the European Union.
D) new political leaders who will overwhelm the existing leadership.
E) the dilution of the euro.

Question 73

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 74

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

A) deciding on how to limit the political aspects of union.
B) diluting the value of the euro.
C) strengthening ties with the United Nations.
D) deciding on how to control the individualistic European population.
E) how to control rapid expansion.

Question 75

The European Community uses several forms of legal instruments.

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

Question 76

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 of Independent States
E) Council of Ministers

Question 77

Which agency established the parameters for the creation of the common currency for the European Union?

A) The Economic policy agency.
B) The Optimal currency area-eurozone.
C) The Economy of Europe.
D) The European Currency Reserve.
E) The Economic and Monetary Union.

Question 78

The institutions of the European Union form a _____ pattern.

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

Question 79

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 80

The _____ is the European Union's Supreme Court.

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