Question 1

The United States-Canada Free Trade Area (CFTA) was a customs union like the European Community.

Accepted Answer

The United States-Canada Free Trade Area (CFTA) was not a customs union; it was a free trade agreement aimed at eliminating tariffs between the two countries, whereas a customs union involves a common external tariff on imports from non-member countries, which the CFTA did not establish.

Question 2

One of the most important aspects of the Latin American Integration Association (LAIA) that differs from LAFTA, its predecessor, is the differential treatment of member countries according to their level of economic development.

Accepted Answer

LAIA, unlike its predecessor LAFTA, incorporates the principle of economic flexibility, allowing for differential treatment of member countries based on their level of economic development to promote a more equitable form of regional integration.

Question 3

The ________ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MDCs, LDCs, and LLDCs.

Accepted Answer

The United Nations classifies countries into these categories (MDCs, LDCs, LLDCs) based on their level of industrialization and economic development.

Question 4

Big emerging markets are of major political importance within their regions.

Accepted Answer

Big emerging markets exert significant influence on regional politics due to their economic size, growth potential, and strategic importance, often shaping regional policies and alliances.

Question 5

The DR-CAFTA includes a wide array of tariff reductions aimed at increasing trade and employment.

Accepted Answer

The Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) includes tariff reductions among its provisions to boost trade and employment among the signatory countries, which include the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.

Question 6

According to the United Nations' stages of economic development for classifying countries based on levels of industrialization, ________ countries consist of industrially developing countries just entering world trade with relatively low per capita incomes.

Accepted Answer

Less-developed countries (LDCs) are characterized by their nascent stage of industrialization and their entry into global trade, often marked by lower per capita income levels compared to more-developed countries.

Question 7

As a country develops, market behavior changes and eventually it leads to market segmentation.

Accepted Answer

As a country develops, its market matures, leading to more diverse consumer needs and preferences, which in turn encourages businesses to target specific segments of the market with tailored products or services.

Question 8

In the United States, the vast majority of the population lives in urban areas and has higher earnings than those who live in rural areas.

Accepted Answer

Urban areas in the United States tend to offer more job opportunities, higher wages, and a greater concentration of industries compared to rural areas, leading to higher average earnings for those living in urban settings.

Question 9

Which country is an MDC (more-developed country)?

Accepted Answer

Germany is an MDC (more-developed country).

Question 10

Poland has been identified as a big emerging market by the Department of Commerce.

Accepted Answer

Poland has been identified as a big emerging market by the U.S. Department of Commerce due to its rapidly growing economy and increasing importance in the global market.

Question 11

Dynamic economies differ from static economies in that dynamic economies

Accepted Answer

Dynamic economies are characterized by rapidly changing consumption patterns, unlike static economies where changes are slower and more predictable. This necessitates different strategies for businesses to adapt and thrive.

Question 12

What is considered the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?

Accepted Answer

The answer of What is considered the single most important...

Question 13

Canada is a member of NAFTA.

Accepted Answer

Canada is a member of NAFTA, which stands for the North American Free Trade Agreement, alongside Mexico and the United States.

Question 14

According to the U.S. Department of Commerce, Latin American and other emerging markets will account for ________ of the world's total growth in the next two decades and beyond.

Accepted Answer

Emerging markets, including those in Latin America, are expected to account for 75% of the world's total growth in the next two decades and beyond, reflecting their increasing economic significance on the global stage.

Question 15

Economic ________ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product or gross national income.

Accepted Answer

Economic development refers to the improvement in economic well-being and quality of life, often measured by increases in per capita GDP or GNI, indicating higher national production and income levels.

Question 16

The Mercosur originally envisioned central institutions similar to those of the European Union institutions.

Accepted Answer

The answer of The Mercosur originally envisioned central institutions similar...

Question 17

Mercosur is the largest common-market agreement in the Americas.

Accepted Answer

NAFTA (now USMCA) is larger in terms of economic size and trade volume compared to Mercosur.

Question 18

According to the United Nations' stages of economic development for classifying countries based on levels of industrialization, in which category does an industrialized country with high per capita income fall?

Accepted Answer

More-developed countries are characterized by their high level of industrialization and high per capita income, distinguishing them from less-developed or least-developed countries.

Question 19

According to the United Nations' stages of economic development for classifying countries based on levels of industrialization, Canada falls under the category of ________ countries.

Accepted Answer

Canada is classified as a more-developed country due to its high level of industrialization, advanced technological infrastructure, and high standard of living.

Question 20

Which statement is true about MDCs (more-developed countries)?

Accepted Answer

MDCs (more-developed countries) typically have high per capita incomes, indicating a higher standard of living and a more advanced economic structure, often characterized by a significant industrial and service sector.

Quiz 9: Economic Development and the Americas