Question 1

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

Accepted Answer

These are indeed three of the key provisions of NAFTA. Market access refers to the ability of businesses in each of the three countries (Canada, Mexico, and the United States) to access each other's markets with their goods and services. Nontariff barriers are any kind of restriction or regulation (e.g. safety standards) that might discourage trade between the countries. Finally, rules of origin are the criteria used to determine which products qualify for preferential treatment under NAFTA (i.e. which products are exempt from tariffs).

Question 2

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called:

Accepted Answer

Multinational market regions are groups of countries that collaborate to improve their economic relations by reducing trade and tariff barriers among themselves, aiming for mutual economic benefits.

Question 3

Regional economic cooperative agreements have been around since:

Accepted Answer

Regional economic cooperative agreements, such as the European Union, have been around since the end of World War II with the creation of the European Coal and Steel Community in 1951. Other regional economic agreements such as the North American Free Trade Agreement (NAFTA) and the Association of Southeast Asian Nations (ASEAN) also emerged in the post-World War II era.

Question 4

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.

Accepted Answer

Cultural similarity eases the shock of economic cooperation with other countries. The more similar the culture, the more likely an agreement is to succeed, because members understand the outlook and viewpoints of their colleagues. Although there is great cultural diversity in the European Union, key members share a long-established Christian heritage and are commonly aware of being European.

Question 5

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

Accepted Answer

The Southern African Development Community (SADC) is considered to be the most advanced and viable of Africa's regional organizations. It was established in 1980 and currently consists of 16 member countries in Southern Africa. The SADC focuses on promoting regional integration, economic growth, and poverty reduction in the region.

Question 6

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

Accepted Answer

ASEAN is the primary multinational trade group in Southeast Asia, comprising 10 countries in the region. It aims to promote economic cooperation, political stability, and regional integration among its member countries.

Question 7

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?

Accepted Answer

Preferential tariff treatment for participating members or common tariff barriers against outsiders is a common way that economic unions enlarge market opportunities. This helps member states to trade more easily and efficiently with each other while jointly negotiating with outside countries.

Question 8

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.

Accepted Answer

This statement is true. ASEAN countries have focused on developing their manufacturing sectors to drive their economic growth, moving away from dependency on commodity exports.

Question 9

The World Trade Organization is wholly dedicated to __________.

Accepted Answer

The primary focus of the World Trade Organization (WTO) is to facilitate and make international trade more efficient among member countries. This includes reducing trade barriers and promoting free and fair trade practices. While the other options may be components of the WTO's work to some extent, promoting efficient trade is the organization's core function.

Question 10

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

Accepted Answer

Nations with complementary economic bases are more likely to have products and industries that are mutually beneficial to each other, making it easier for them to trade and integrate their markets. On the other hand, nations with divergent economic bases may have conflicting industries or products that compete with each other, leading to frictions in the development and operation of a common market unit.

Question 11

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

Accepted Answer

There is a formal association called the Caribbean Community (CARICOM) that administers to the needs of Caribbean countries.

Question 12

With respect to political factors,which of the following is one of the most cherished possessions of any nation?

Accepted Answer

State sovereignty is one of the most cherished possessions of any nation. It refers to the power of a state to govern itself without interference from external sources. It is a fundamental principle of international law and is enshrined in the United Nations Charter. State sovereignty is important because it allows nations to maintain their cultural identity and protect their citizens from external threats.

Question 13

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

Accepted Answer

The answer of MERCOSUR is the largest common-market agreement in...

Question 14

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?

Accepted Answer

Geographic proximity is a critical factor for ensuring an effective economic union because it reduces the cost of transportation and communication between member nations, making it easier for businesses to operate and trade across borders.

Question 15

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

Accepted Answer

The current NAFTA members include the United States, Canada, and Mexico. Brazil is not a member of NAFTA.

Question 16

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

Accepted Answer

The Middle East is not particularly known for forming multinational market groups compared to regions like Europe or Southeast Asia. While there are some economic collaborations, they are not as extensive or aggressive as those in other regions.

Question 17

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

Accepted Answer

The WTO (World Trade Organization) represents the most important and comprehensive trade agreement in history, as it encompasses 164 member countries and aims to lower trade barriers and promote free trade across the globe. NAFTA (North American Free Trade Agreement) and MERCOSUR (Southern Common Market) are regional trade agreements, while the Amsterdam Treaty and ASEAN (Association of Southeast Asian Nations) are not trade agreements.

Question 18

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

Accepted Answer

Matrimonial factors have no relevance to economic union. Economic, cultural, geographic, and political factors are all important for the success of an economic union.

Question 19

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

Accepted Answer

NAFTA (North American Free Trade Agreement) was not envisioned as the blueprint for the European Union. The European Union has a very different structure and goals compared to NAFTA.

Question 20

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

Accepted Answer

The economically stronger members of LAFTA did not adequately address the needs and concerns of the weaker member nations, leading to imbalances and dissatisfaction within the organization, which contributed to its demise.

Quiz 10: Multinational Market Regions and Market Groups