Question 1

Mercosur ran into difficulties in 1998 when _______________.

Accepted Answer

Mercosur ran into difficulties in 1998 due to the economic recession that affected its members, leading to financial instability and a decrease in trade.

Question 2

The most recent countries to become a members of ASEAN are:

Accepted Answer

Vietnam, Laos, and Myanmar are the most recent countries to become members of ASEAN. Cambodia, Brunei, China, Japan, Malaysia, South Korea, and Thailand became members earlier.

Question 3

Several levels of economic integration are possible in theory.From most integrated to the least integrated they are area free trade area,a common market,a customs union,an economic union,and finally,a full political union.

Accepted Answer

The correct order from least to most integrated is: free trade area, customs union, common market, economic union, and finally, a full political union.

Question 4

The ______________ pact reportedly helped bring about an 80 percent increase in trade between Brazil and Argentina in the 1980's.

Accepted Answer

MERCOSUR, also known as the Southern Common Market, is a trade pact between several South American countries, including Brazil and Argentina. It was signed in 1991, but there was an earlier agreement signed in 1988 that helped to increase trade between the two countries by 80%. This agreement was a precursor to MERCOSUR and paved the way for future cooperation between the two countries.

Question 5

The acronym BRIC stands for Britain,Russia,India,and China.

Accepted Answer

The acronym BRIC actually stands for Brazil, Russia, India, and China, representing the rapidly developing economies of these four countries.

Question 6

In a free trade area all barriers to the trade of goods and services among member countries are removed.

Accepted Answer

A free trade area (FTA) is a regional agreement in which member countries eliminate tariffs, quotas and other trade barriers on goods and services traded between them. Therefore, the statement is true.

Question 7

The most enduring free trade area in the world is the European Free Trade Association.

Accepted Answer

The European Free Trade Association (EFTA) is an intergovernmental organization that promotes free trade and economic integration among its member states. It was established in 1960 and currently has four member states: Iceland, Liechtenstein, Norway, and Switzerland. While the European Union (EU) is also a free trade area, it is not an intergovernmental organization and has a broader mandate beyond just trade.

Question 8

Formed in 1967,ASEAN currently includes

Accepted Answer

ASEAN currently includes Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Some of the other options include countries that are not members of ASEAN such as Japan, Hong Kong, Taiwan, and Cambodia.

Question 9

APEC currently has ______________ members including such economic powerhouses as the United States,Japan,and China.

Accepted Answer

APEC currently has 21 members which include the United States, Japan, China, and other economic powerhouses such as Australia, Canada, Russia, and South Korea.

Question 10

In 1990,the MERCOSUR pact was expanded to include

Accepted Answer

The MERCOSUR pact, also known as the Southern Common Market, was established in 1991 between Brazil, Argentina, Uruguay, and Paraguay. In 1994, it was expanded to include Bolivia as an associate member. Therefore, the option C is the correct choice as it includes two countries that were included in the MERCOSUR pact in 1990.

Question 11

All regional trade agreements reached in the past half century are still in force.

Accepted Answer

Many regional trade agreements have been renegotiated, replaced, or have ceased to exist over time due to various economic, political, or strategic reasons.

Question 12

The lowering of _______________ between countries is likely to lead in increased price competition throughout the EU and NAFTA.

Accepted Answer

Lowering barriers to trade between countries leads to increased access to markets and increased price competition. This would be the most direct factor affecting pricing within trade groups such as the EU and NAFTA. Military stability, perception of EU stability, single market solutions, and administrative barriers may indirectly affect pricing but are not as directly related as barriers to trade.

Question 13

Europe has been the most successful example of regional economic integration.

Accepted Answer

Europe has been a very successful example of regional economic integration with the creation of the European Union, the Eurozone, and the Schengen Area. These initiatives have led to increased trade, economic growth and job creation for member states.

Question 14

According to the textbook,Countries in _____________ have been,mostly unsuccessfully,experimenting with regional trade blocks for 50 years.

Accepted Answer

African countries have been attempting to establish regional trade blocks for decades, but these efforts have often faced challenges and have not been as successful as intended.

Question 15

The United States,Japan,and China are among 21 members of a trade organization referred to as

Accepted Answer

The correct trade organization that includes the United States, Japan, and China is APEC (Asia Pacific Economic Cooperation). The other options listed are either nonexistent or not inclusive of all three countries.

Question 16

Currently,the four member states of MERCOSUR include

Accepted Answer

The four member states of MERCOSUR are Brazil, Argentina, Paraguay, and Uruguay.

Question 17

The last few years has witnessed an unprecedented proliferation of regional trade agreements.

Accepted Answer

This statement is true. In recent years, there has been a significant increase in the number of regional trade agreements being negotiated and implemented around the world. Examples of such agreements include the Trans-Pacific Partnership (TPP) between Pacific Rim countries, the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico, and the African Continental Free Trade Area (AfCFTA) between African nations.

Question 18

The term "Fortress Europe" refers to:

Accepted Answer

"Fortress Europe" refers to the perception that the European Union is designed to protect the European continent from the import of foreign produced goods, which is often criticized for being too restrictive and difficult for non-European businesses to access. This term does not relate to military prowess, unwillingness to form trade relationships, or economic stability or strength.

Question 19

By 2008 few of the WTO's members were participating in regional trade agreements.

Accepted Answer

By 2008, many of the WTO's members were participating in regional trade agreements.

Question 20

Agreements among countries in a region to reduce and ultimately remove tariff and nontariff barriers are known as regional economic integration.

Accepted Answer

Regional economic integration refers to agreements among countries in a region to reduce and ultimately remove tariff and nontariff barriers to promote economic cooperation and integration. Examples of regional economic integration include the European Union (EU), North American Free Trade Agreement (NAFTA), and the Association of Southeast Asian Nations (ASEAN).

Quiz 8: Regional Economic Integration