Deck 10: Multinational Market Regions and Market Groups

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

For years prior to NAFTA,the United States and Canada had the largest bilateral trade agreement in the world.This agreement was aptly called a customs union.

Question 7

The Single European Act of 1987 was the act that removed communism from all Eastern European nations and brought all of these nations into the European Union.

Question 8

was that the European Union agreed to abolish involvement with NATO and form their own political union and defense.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

The United Nations efforts in support of expanding trade among nations include mutual economic development

Question 14

The most basic economic integration and cooperation is geographically local federation (GLF).

Question 15

The initial aim of a multinational market is to protect businesses that operate within its borders.An expressed goal is to give an advantage to the companies within the market in their dealings with other countries of the market group.

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

Some of the key provisions of NAFTA center on the topics of market access,nontariff barriers,and rules of origin.

Question 22

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 23

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 24

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 25

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

Question 26

The primary multinational trade group in Asia is the Association of Southeast Asian Nations (ASEAN).

Question 27

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 or common tariff barriers against outsiders.
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 28

One of the major events that has accounted for the vigorous economic growth of ASEAN countries is the decision by trade group members to shift their economies from commodity-based to manufacturing-based.

Question 29

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 bribery laws
E)the making trade among nations more efficient

Question 30

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 31

At present there is no formal association or group that administers to the needs of Caribbean countries.

Question 32

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 33

MERCOSUR is the largest common-market agreement in Latin America.

Question 34

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 35

Current NAFTA members include the United States,Canada,Mexico,and Brazil.

Question 36

Not surprisingly,the Middle East has been very aggressive in forming multinational market groups.

Question 37

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 38

Successful economic union requires favorable situations in all of the following areas EXCEPT:

A)economic factors.
B)matrimonial factors
C)cultural factors.
D)geographic factors.
E)political factors.

Question 39

Initially NAFTA was envisioned as the blueprint for the European Union.

Question 40

The demise of the Latin American Free Trade Association (LAFTA)was the result of:

A)the United States refusing to join the union.
B)economically stronger members not allowing for the needs of the weaker ones.
C)the friction between communism and democracy.
D)the rise of the Internet in global trading.
E)the lack of mutual support of member nations.

Question 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

The introduction of euro banknotes and coins facilitated:

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

Question 49

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 50

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

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

Question 51

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

A)cartel
B)democracy
C)commonwealth
D)pact
E)union

Question 52

The __________ is the European Union's Supreme Court.

A)Council of Ministers
B)European Court of Justice
C)European Parliament
D)Brussels Judicial Council
E)European Community Committee

Question 53

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 54

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 55

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

A)marketing;management;geometric
B)energy;political;geographical
C)cultural;legal;social
D)sensitivity;coastal;religious
E)articulation;educational;technological

Question 56

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 57

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 58

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 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

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 61

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 62

_____________ 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 63

.

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

Question 64

All of the following are areas of difficult negotiation for the European Union as it considers adding more members EXCEPT:

A)United Nations issues.
B)agriculture issues.
C)human rights issues.
D)financial considerations.
E)border issues.

Question 65

When the Soviet Union dissolved,it was replaced by the __________________ that had 12 members that agreed to a loose economic and political alliance with open borders but no central government.

A)European Trade Pact
B)Commonwealth of Independent States
C)The Eurasian Alliance
D)The Russian Confederation
E)The Post-Soviet Bloc

Question 66

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

A)improving the Union's economic performance
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 __________ 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 68

The official European Union abbreviation for the Euro is __________.

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

Question 69

All of the following are considered to be key provisions of NAFTA EXCEPT:

A)market access.
B)intellectual property.
C)standards.
D)customs administration.
E)labor mobility

Question 70

The ties that bind members of the _______________ stem mainly from their former Soviet membership.

A)European Trade Pact
B)Commonwealth of Independent States
C)Central European Free Trade Area
D)The Eurasian Alliance
E)The Post-Soviet Bloc

Question 71

One of the challenges facing the 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 72

Preceding the creation of NAFTA,which of the following two countries had the world's largest bilateral trade agreement?

A)England and the United States
B)the United States and Mexico
C)the United States and Canada
D)England and France
E)Germany and the United States

Question 73

The success of MERCOSUR has been in part attributable to:

A)support from free market advocates in the United States and the United Nations.
B)fear of military intervention if they did not come to an agreement.
C)leadership of Fidel Castro.
D)member's reaching agreements on automobile,textile,and border customs procedures.
E)the previous success of NAFTA.

Question 74

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 in retarding new member admission?

A)the treat of nuclear war
B)the use of the euro in Eastern Europe
C)the rise of Asia in the world arena
D)the prospect of illegal immigrants from the former Soviet Union
E)the economic stability of prospective members

Question 75

The European Court of Justice is the Union's:

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

Question 76

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 77

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

A)deciding about further enlargement
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 78

Europe has one other trade group 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

If you were looking for a trade agreement that had as some of its members the island nations of Barbados,Haiti,Jamaica,and Trinidad-Tobago,you would be looking at which of the following?

A)CETA
B)NAFTA
C)CARICOM
D)MERCOSUR
E)CACM

Question 80

The currency of the European Union is now officially the:

A)dollar.
B)pound.
C)franc.
D)fround (combined pound and franc).
E)euro.