Question 1

The six countries in the Gulf Cooperation Council (GCC)hold about 45% of the world's known oil reserves, but production is only about 18% of world oil output.

Accepted Answer

The statement is incorrect. The six countries in the Gulf Cooperation Council (GCC) hold about 30% of the world's known oil reserves and produce about 22% of the world's oil output (as of 2019).

Question 2

Despite trade agreements, attempts to achieve integration in Central America have been described as uncoordinated, inefficient, and costly.There are still tariffs on imports of sugar, coffee, and alcoholic beverages.

Accepted Answer

Despite trade agreements, attempts to achieve integration in Central America have been described as uncoordinated, inefficient, and costly. There are still tariffs on imports of sugar, coffee, and alcoholic beverages.

Question 3

The objective of the EU member countries is to harmonize national laws and regulations so that goods, services, people, and eventually money can flow freely across national boundaries.

Accepted Answer

This is a basic principle of the European Union, known as the Single Market, which aims to create a level playing field and eliminate barriers to trade and free movement within the EU.

Question 4

Blessed with a location near the equator, Ecuador's cut-flower industry generates hundreds of millions of dollars in sales each year.

Accepted Answer

This statement is true. Ecuador's cut-flower industry is one of the country's largest sources of revenue, generating hundreds of millions of dollars in sales each year. The industry benefits from Ecuador's equatorial location, which provides a favorable climate for year-round flower production.

Question 5

Movements such as "the Arab Spring" have forced some of the regional leaders to make economic and political concessions.

Accepted Answer

The Arab Spring movements led to protests and social, economic, and political changes in some countries in the Middle East, including Tunisia, Egypt, Yemen, and Libya. As a result, some of the regional leaders made concessions, such as implementing economic reforms and allowing for more democratic participation.

Question 6

ASEAN's leaders are working to establish a fully integrated, single-market ASEAN Economic Community by 2015.

Accepted Answer

This statement is true. ASEAN's leaders have been working towards establishing a fully integrated, single-market ASEAN Economic Community by 2015. The goal is to promote the free flow of goods, services, investment, and skilled labor within the region. However, it should be noted that while progress has been made towards this goal, there are still some challenges and issues that need to be addressed before it can be fully realized.

Question 7

Since 2010 there is a formal establishment of a new China/ASEAN Free Trade Agreement.

Accepted Answer

In 2010, China and ASEAN signed a Free Trade Agreement (FTA) framework, which became effective in 2015. The FTA aims to eliminate tariffs on goods traded between China and ASEAN member countries, and promote economic cooperation and integration in the region.

Question 8

In May 1998, eleven charter members of the eurozone were chosen, which included Greece.

Accepted Answer

Greece was not one of the original eleven charter members of the eurozone in May 1998; it joined later in 2001.

Question 9

The EU is Mercosur's number one trading partner although Germany and France are opposed to such an agreement.

Accepted Answer

The EU is indeed Mercosur's number one trading partner, but Germany and France have expressed opposition to the proposed trade agreement between Mercosur and the EU.

Question 10

Competing ideologies in South America help explain why intraregional trade is yielding more benefits.

Accepted Answer

The answer of Competing ideologies in South America help explain...

Question 11

Markets in Central and Eastern Europe are not eager to embrace well-known global brands such as McDonald's, 3M International, and Philips Electronics.

Accepted Answer

The statement is false. Many markets in Central and Eastern Europe have embraced well-known global brands such as McDonald's, 3M International, and Philips Electronics.

Question 12

Repeat visits, extended socialization with distributors, and mastering the keiretsu system are all essential for being successful in Japanese markets.

Accepted Answer

Repeat visits to build relationships, extended socialization to understand the business culture, and mastering the keiretsu system (a network of suppliers and buyers) are all crucial for succeeding in the Japanese market.

Question 13

The Vatican City uses the euro although it is not a part of the European Union.

Accepted Answer

The Vatican City has an agreement with the EU to use the euro as its official currency.

Question 14

Chile decided to become only an associate member of Mercosur since full membership would have required raising external tariffs.

Accepted Answer

This statement is true. Chile joined Mercosur as an associate member in 1996, and has maintained this status since then. As an associate member, Chile is not subject to the full range of Mercosur trade policies, including the common external tariff (CET). This allows Chile to continue trading with other countries in the region without being subject to the CET, which would have raised tariffs on imports from outside of the Mercosur bloc.

Question 15

Coca-Cola had to delay launching its Powerade sports drink in Europe due to the lack of uniform food safety laws in the European Union.

Accepted Answer

Coca-Cola postponed the launch of Powerade in Europe due to the lack of a uniform food safety law in the European Union.

Question 16

ASEAN's goal is to strengthen intra-regional trade relationships so members do not have to trade with China.

Accepted Answer

ASEAN's goal is not to avoid trading with China, but to increase economic cooperation and trade with all countries, including China. ASEAN and China also have a free trade agreement and collaboration in various fields such as infrastructure development and tourism.

Question 17

Saudi Arabia, a major oil-producing nation, posted current-account deficits since they must import most of the goods and services.

Accepted Answer

Saudi Arabia is a major oil-producing nation, but it still imports most of its goods and services, which leads to current-account deficits.

Question 18

Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand were the original six members of the Association of Southeast Asian Nations referred to as ASEAN-6.

Accepted Answer

ASEAN-6 refers to the initial six founding members of the Association of Southeast Asian Nations.

Question 19

CARICOM's main objective has been to achieve a deepening of economic integration by means of a Caribbean common market.

Accepted Answer

This is stated in the Revised Treaty of Chaguaramas, which outlines the goals of the Caribbean Community (CARICOM).

Question 20

Mercosur or the Common Market of the South resulted from a treaty signed by four countries: Argentina, Brazil, Paraguay, and Venezuela.

Accepted Answer

The answer of Mercosur or the Common Market of the...

Quiz 3: Regional Market Characteristics and Preferential Trade Agreements