Question 1

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

By devaluing its currency, Argentina made its exports more competitive and attractive to buyers in other countries. This helped stimulate economic growth and improve the balance of trade. Additionally, devaluing the currency made it more expensive for Argentinians to import goods, which encouraged them to buy domestically manufactured products, further boosting the country's economy.

Question 2

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

Accepted Answer

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

Question 3

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 statement "goods marketed should have a semblance of western products and services" is incorrect, as there is no requirement for products to resemble Western ones. The other options are all legitimate barriers that global marketers may face in Japan.

Question 4

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

Accepted Answer

Attempts to achieve integration in Central America have been described as uncoordinated due to the lack of a comprehensive and coordinated plan among countries in the region. Despite efforts to establish regional economic and political cooperation, there have been challenges in achieving meaningful integration, and progress has been slow.

Question 5

The Secretariat for Central American Integration is headquartered in:

Accepted Answer

The Secretariat for Central American Integration (SICA) is headquartered in Guatemala City, Guatemala. SICA is an organization comprised of eight Central American countries (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic) that promotes regional integration and cooperation.

Question 6

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

Accepted Answer

The answer of NAFTA creates a free trade area in...

Question 7

The allure of the Latin American market has been its:

Accepted Answer

The Latin American market's considerable size has made it an attractive destination for foreign investment and expansion opportunities. While some countries in the region have experienced rapid economic growth, others have struggled with inflation, foreign debt, and protectionist policies. Therefore, options A, C, D, and E cannot be the best choice(s).

Question 8

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

The form of economic cooperation that is described in the question is a free trade area, which eliminates barriers to trade among member countries while allowing each country to maintain its own trade policies with non-member countries. Economic union involves a common currency and coordinated economic policies, customs union is a free trade area with a common external tariff, and a common market involves free movement of goods, services, capital, and labor among member countries.

Question 9

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 10

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, after Shanghai in China.

Question 11

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 were Indonesia, Malaysia, Philippines, Singapore, Thailand, and Brunei.

Question 12

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 therefore was not included in DR-CAFTA.

Question 13

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

Accepted Answer

The correct answer is E because Venezuela is not located in Central America and therefore was not one of the original members of the Central American Integration System. The five original members were El Salvador, Honduras, Guatemala, Nicaragua, and Costa Rica.

Question 14

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 on goods traded between the United States, Canada, and Mexico, but it does not impose restrictions on the use of goods, services, investments or labor movements. Therefore, NAFTA creates a free trade area. The issue of illegal immigration is not directly related to NAFTA.

Question 15

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 GNH (Gross National Happiness) as a measure of progress and development rather than just relying on economic indicators like GDP or GNI. This approach considers social, environmental, and cultural factors in addition to economic factors.

Question 16

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 17

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

Accepted Answer

BRIC stands for Brazil, Russia, India, and China and is a grouping of emerging economies. It is not a preferential trading arrangement in Latin America.

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

According to the United States Trade Representative, Singapore ranks number one among ASEAN countries in terms of two-way trade with the United States. In 2019, the total two-way trade between the two countries amounted to $55.8 billion.

Question 20

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

Accepted Answer

Chile withdrew from the Andean Community in 1976 due to conflicts with member countries over trade agreements and political differences.

Quiz 3: The Global Trade Environment