Question 1

__________ tends to discourage international business in parts of Africa.

Accepted Answer

All of the options listed (Poverty, a continuing AIDS epidemic, and a low economic growth rate in many areas) can discourage international business in parts of Africa by creating unstable economic environments, reducing the workforce's health and productivity, and limiting market growth potential.

Question 2

Countries that have joined together to form the North American Free Trade Agreement (NAFTA) include:

Accepted Answer

NAFTA is a trade agreement between Canada, the United States, and Mexico, making choice C the correct answer.

Question 3

Which of the following are competitive implications for the European Union?

Accepted Answer

The free flow of workers, goods, services, and investments across national boundaries is a competitive implication for the EU as it enhances economic integration and competitiveness within the region.

Question 4

__________ links 14 countries of southern Africa in trade and economic development efforts.

Accepted Answer

The Southern African Development Community (SADC) is the correct answer because it is an organization that links 14 countries of southern Africa with the aim of promoting sustainable and equitable economic growth and socio-economic development through efficient productive systems, deeper cooperation and integration, good governance, and durable peace and security.

Question 5

The Asia-Pacific Economic Cooperation (APEC) provides for Asia-Pacific economies to strengthen regional links and:

Accepted Answer

APEC's primary goal is to foster economic growth and prosperity in the Asia-Pacific region by pursuing common trade and economic goals among its member economies.

Question 6

Which of the following statements about the relationship between Australia and New Zealand is true?

Accepted Answer

The bilateral relationship between Australia and New Zealand is indeed strong, particularly in terms of trade and economic cooperation. This is evidenced by the ongoing progress in the trans-Tasman trade and economic agenda, which includes various agreements and arrangements to facilitate trade and economic integration between the two countries.

Question 7

__________ is a region of ethnic turmoil and civil strife in countries struggling along the road to peace and economic development while simultaneously being a region rich with international business opportunities.

Accepted Answer

Africa is known for its ethnic turmoil and civil strife in various countries, which poses challenges to peace and economic development. Despite these issues, it is also recognized for its rich international business opportunities, given its vast resources and growing markets.

Question 8

Which one of the following statements does NOT accurately describe the concerns of the countries that negotiated the North American Free Trade Agreement?

Accepted Answer

The primary concern of Canadians regarding NAFTA was not about a vast influx of Mexican immigrants but rather about economic issues such as trade balances and the impact on Canadian industries. The other options accurately reflect concerns of the respective countries during the NAFTA negotiations.

Question 9

Australia's strengthening cooperation with Asia contributes to:

Accepted Answer

Australia's strengthening cooperation with Asia contributes to its security, promotes its international interests, and increases trade collaboration, making all of the options listed correct.

Question 10

Important business and economic agreements among the EU countries include all the following EXCEPT:

Accepted Answer

The EU encourages a common currency among its members, notably through the adoption of the Euro by many of its member countries, making option C incorrect as it states the opposite.

Question 11

Which of the following accurately describes member countries of the forum for Asia-Pacific Economic Cooperation (APEC)?

Accepted Answer

APEC accounts for about 70 percent of Australia's total trade with the rest of the world, making it a significant economic partnership for Australia.

Question 12

Along with the EU, __________ is among Australia and New Zealand's largest trading partners and sources of foreign investment.

Accepted Answer

The US is among Australia and New Zealand's largest trading partners and sources of foreign investment, reflecting the strong economic ties and cooperation between these countries.

Question 13

Australia and New Zealand's interest in high quality US engagement in the Asia-Pacific region continues, especially the importance of good US relations with:

Accepted Answer

Australia and New Zealand value US engagement in the Asia-Pacific for stability and security reasons. Good relations between the US and key regional players like China, Indonesia, the Republic of Korea, and Japan are crucial for maintaining a balance of power and ensuring economic and security cooperation.

Question 14

__________ refers to the process of growing interdependence among resource supplies, product markets, and business competition on a worldwide basis.

Accepted Answer

Globalisation refers to the increasing interconnectedness and interdependence of the world's markets and businesses. This process involves the growing integration of economies and societies around the world, primarily due to advances in communication, transportation, and trade liberalization.

Question 15

The European Union is composed of 27 Western European countries that have:

Accepted Answer

The European Union (EU) is primarily focused on promoting mutual economic growth among its member states through the removal of trade barriers, facilitating the free movement of goods, services, capital, and people.

Question 16

The __________ is the common currency of the European Union.

Accepted Answer

The euro is the official currency of 19 out of the 27 European Union countries, which together make up the Eurozone.

Question 17

The North American Free Trade Agreement has created a market of potential consumers larger than its rival, the:

Accepted Answer

The North American Free Trade Agreement (NAFTA), which includes the United States, Canada, and Mexico, created a large free trade area. The European Union (EU) is its closest rival in terms of economic size and market potential, making choice A correct.

Question 18

The __________ is/are comprised of 27 countries linked together through favourable trade and customs laws to facilitate the free flow of workers, products and investments across national boundaries.

Accepted Answer

The European Union (EU) is comprised of 27 countries that have agreed to favorable trade and customs laws to facilitate the free flow of workers, products, and investments across their national boundaries.

Question 19

Which of the following is NOT an expected benefit of a common European currency?

Accepted Answer

A common currency does not eliminate economic risks; it can reduce some risks like exchange rate fluctuations but may introduce others, such as the inability to adjust monetary policy independently for individual countries.

Question 20

One of the controversies associated with NAFTA is the operation of manufacturing plants that are allowed to import materials, components and equipment duty-free. These firms are called:

Accepted Answer

Maquiladoras are manufacturing plants in Mexico that import materials and equipment duty-free for assembly or manufacturing and then export the finished product. They are a direct result of NAFTA's trade agreements, allowing for reduced costs in cross-border trade.

Quiz 4: International Dimensions of Management