Question 1

According to the text,which of the following is the second stage of regional integration?

Accepted Answer

A customs union is the second stage of regional integration, following a free trade area. In a customs union, member countries agree to eliminate tariffs and other trade barriers among themselves and adopt a common external tariff against non-members.

Question 2

Which one of the following is not considered a main objective of the regional bloc affecting Lynette?

Accepted Answer

Diminishing relationships with major powers is not considered a main objective of regional blocs. The other objectives listed, such as accelerating economic growth, encouraging regional peace, promoting stability through the rule of law, and increasing cultural development, are commonly cited as goals of regional blocs.

Question 3

Implementation of a multitude of economic and/or political steps by member states to increase their global competitiveness,including preferential trade access refers to _______.

Accepted Answer

The answer of Implementation of a multitude of economic and/or...

Question 4

The study of principles that govern the efficient spatial allocation of economic resources and the resulting consequences refers to _____.

Accepted Answer

The answer of The study of principles that govern the...

Question 5

A(n)________ is an area in which two or more countries agree to eliminate all barriers to trade such as tariffs,quotas,and non-tariff barriers like border restrictions,while at the same time keeping their own external tariffs (within WTO guidelines)against nonmembers.

Accepted Answer

The answer of A(n)________ is an area in which two...

Question 6

The process of allowing efficient geographic distribution of business activities within and among countries refers to _______.

Accepted Answer

The answer of The process of allowing efficient geographic distribution...

Question 7

A group of free trade member countries that have adopted a common external tariff with nonmember countries refers to ______.

Accepted Answer

The answer of A group of free trade member countries...

Question 8

The Treaty of ______ in 1957 established the European Economic Community (EEC).

Accepted Answer

The answer of The Treaty of ______ in 1957 established...

Question 9

With the anticipated success of NAFTA,formal discussions to establish a Free Trade Area of the Americas began under the _____ administration.

Accepted Answer

Formal discussions to establish a Free Trade Area of the Americas began under the Clinton administration.

Question 10

NAFTA is a free-trade agreement among Canada,the United States,and _____.

Accepted Answer

The answer of NAFTA is a free-trade agreement among Canada,the...

Question 11

In which country is ASEAN headquartered?

Accepted Answer

The ASEAN (Association of Southeast Asian Nations) is headquartered in Jakarta, Indonesia.

Question 12

A ______ (or single)market is formed when member countries of a customs union remove all barriers to allow the movement of capital and labor within the customs union.

Accepted Answer

The answer of A ______ (or single)market is formed when...

Question 13

A(n)________ union is created when member countries of an economic and monetary union work closely with one another to arrive at common defense and foreign policies and behave as a single country.

Accepted Answer

The answer of A(n)________ union is created when member countries...

Question 14

A(n)________ is formed when members of a common market agree to implement common social programs and coordinated macroeconomic policies that would lead to the creation of a single regional currency and a regional apex central bank.

Accepted Answer

The answer of A(n)________ is formed when members of a...

Question 15

Given that SGC's home country,the United States,is part of a regional integration bloc that is based on purely economic goals,benefits to these countries would include all but which one of the following?

Accepted Answer

The other options listed (A, C, D, E) are all potential benefits of regional economic integration. However, surrender of sovereignty is not a benefit, as it involves giving up a degree of control over domestic economic policies to the regional bloc.

Question 16

Scenario - The Lynnette Company
The Lynette Company was founded in 1982 by Solomon and Andrea Lynette.It is currently based in Jakarta,Indonesia and plans to remain in the region due to the potential for continued market growth.The company provides modern office equipment to customers throughout Southeast Asia and has watched a steady rise in need for its products.
Last year,Lynette grossed over five million dollars in sales.It anticipates gross sales to more than double this year.The Lynette Company is pleased by the ample supply of workers from the local region available to help the company.The owners realize this area of the world has the potential to become an important global market.
-Which one of the following would most likely set guidelines for the Lynette Company to follow as it conducts its business in Southeast Asia?

Accepted Answer

ASEAN (Association of Southeast Asian Nations) is a regional intergovernmental organization that promotes economic, political, and social cooperation among its member countries in Southeast Asia. As the Lynette Company operates in Southeast Asia, ASEAN would be the most appropriate organization to provide guidelines for conducting business in the region. The other options, such as the European Union, NAFTA, ASC, and MERCOSUR, are focused on different regions and do not have the same relevance to the Lynnette Company's operations.

Question 17

Which of the following is not a free trade policy impacting Sarten Gas Company?

Accepted Answer

Phased elimination of all trade barriers, protection of intellectual property, environmental protection standards, and protection of workers' rights are all examples of free trade policies that impact Sarten Gas Company by promoting open and fair trade practices. Stringent immigration policies, however, do not fall under this category and would instead fall under a separate policy area related to immigration and border control.

Question 18

_____ refers to the process of allowing efficient geographic distribution of business activities within and among countries.

Accepted Answer

Spatial transformations refers to the process of allowing efficient geographic distribution of business activities within and among countries. This can include outsourcing, offshoring, and other strategies aimed at maximizing efficiency and minimizing costs by taking advantage of differences in wages, taxes, and other factors across different regions. This process can have both positive and negative effects, depending on how it is implemented and the specific circumstances of each case. However, it is an important component of globalization and the evolving dynamics of the global economy.

Question 19

In which country is the EU headquartered?

Accepted Answer

The European Union (EU) has its headquarters in Brussels, Belgium, where key institutions such as the European Commission, the Council of the European Union, and the European Council are located.

Question 20

The Lynette Company's plan to continue its operations within the Asia market offers many benefits as well as challenges.Which one of the following would provide the least degree of challenge for the stability of this company's business operations?

Accepted Answer

The answer of The Lynette Company's plan to continue its...

Quiz 3: Regional Economic Integration