Question 1

For the past 40 years Bhutan,a kingdom of 700,000 people in the Himalaya mountains,has relied on the following measure:

Accepted Answer

Bhutan has relied on Gross National Happiness (GNH) for the past 40 years as a measure of progress and development rather than solely relying on economic indicators such as GDP or GNI. GNH takes into account not only economic growth, but also non-economic factors such as environmental sustainability, cultural preservation, good governance, and overall well-being of its citizens.

Question 2

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n):

Accepted Answer

This form of economic cooperation is known as a free trade area. In a free trade area, member countries eliminate all internal barriers to trade among themselves, such as tariffs and quotas, but maintain their own trade policies with non-member countries. This is not as integrated as a customs union or common market, which involve the establishment of common external trade policies. It is also not as politically integrated as an economic union.

Question 3

Which of the following ASEAN countries ranks number one in terms of two-way trade with the United States?

Accepted Answer

According to the U.S. Census Bureau, Singapore ranks number one in terms of two-way trade with the United States among the ASEAN countries. In 2019, the total value of two-way trade between the U.S. and Singapore was $57.3 billion, which accounted for about 31% of the total U.S. trade with ASEAN countries.

Question 4

Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except:

Accepted Answer

Panama is not a member of SICA and thus not included in the DR-CAFTA free trade agreement with the United States.

Question 5

The original six members of the ASEAN (Association of Southeast Asian Nations)included all of the following countries except:

Accepted Answer

India was not one of the original six members of ASEAN. The original six members were Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Brunei.

Question 6

The most important preferential trading arrangements in Latin America do not include:

Accepted Answer

BRIC refers to the group of emerging economies that includes Brazil, Russia, India, and China. It is not a preferential trading arrangement in Latin America.

Question 7

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

Accepted Answer

Argentina devalued its currency to make exports more competitive and attract foreign investment. This helped to boost their economy and create a more favorable environment for global trade. By reducing the value of their currency, Argentina was able to make their exports more affordable to foreign buyers, which increased demand and generated more revenue. Additionally, devaluation helped make their goods cheaper to produce, which increased the competitiveness of their industries in the global market.

Question 8

Which member of the Central American Integration System has both the largest economy and the largest population?

Accepted Answer

Guatemala has both the largest economy and the largest population among the members of the Central American Integration System.

Question 9

About 70% of Ecuador's flower harvest is exported to:

Accepted Answer

The United States is the largest market for Ecuadorian flowers, receiving about 70% of the country's flower exports.

Question 10

The five original members of the Central American Integration System did not include:

Accepted Answer

The five original members of the Central American Integration System (SICA) were Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica. Venezuela is not a Central American country and therefore was not one of the original members.

Question 11

Which one of the ASEAN members has the World's second-largest container port?

Accepted Answer

Singapore has the world's second-largest container port, the Port of Singapore, which handles more than 36 million twenty-foot equivalent units (TEUs) annually. None of the other ASEAN members mentioned - Thailand, India, Philippines, and Brunei - have container ports that rank among the world's largest.

Question 12

Considering the progress,attempts to achieve integration in Central America has been described as:

Accepted Answer

The attempts to achieve integration in Central America have been described as uncoordinated, which means lacking in organization or synchronization. Despite some efforts, such as the formation of the Central American Integration System (SICA), there have been persistent challenges in achieving true integration among the countries in the region.

Question 13

NAFTA creates a free trade area,as opposed to a customs union or a common market,due to the fact that:

Accepted Answer

NAFTA eliminates tariffs between the three nations, creating a free trade area. The other options listed do not accurately describe the nature of NAFTA.

Question 14

The country that withdrew from the original members of the Andean Community is:

Accepted Answer

The answer of The country that withdrew from the original...

Question 15

The allure of the Latin American market has been its:

Accepted Answer

The considerable size of the Latin American market has been one of its biggest attractions for businesses looking to expand their operations. With a population of over 650 million people and a region-wide GDP of over $5 trillion, Latin America is one of the largest emerging markets in the world.

Question 16

NAFTA creates a free trade area in North America.However,Mexican avocado growers:

Accepted Answer

Mexican avocado growers can only ship avocados to the United States in winter months due to specific trade agreements and phytosanitary regulations.

Question 17

The "Common Market of the South" in Latin America is used to describe:

Accepted Answer

The "Common Market of the South" refers to Mercosur, which is a trading bloc in Latin America made up of Argentina, Brazil, Paraguay, and Uruguay.

Question 18

The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with:

Accepted Answer

The English-speaking CARICOM members in the eastern Caribbean are primarily concerned with defending their privileged trading position with the United States, as it is a major trading partner and a significant source of tourism revenue, investment, and remittances for these countries.

Question 19

There are barriers in Japan for global marketers in terms of attitudes as well as laws.Barriers include all of the following except:

Accepted Answer

The other options listed are all potential barriers for global marketers in Japan, but option C is not accurate. In fact, it is often advised that companies tailor their products and services to the unique preferences of Japanese consumers rather than trying to impose a Western-style approach. Therefore, option C is the exception and is not a barrier for global marketers in Japan.

Question 20

The Secretariat for Central American Integration is headquartered in:

Accepted Answer

The Secretariat for Central American Integration (SICA) is headquartered in Guatemala City, Guatemala, which makes option C the correct choice.

Quiz 3: The Global Trade Environment