Question 1

The type of growth that is happening in BEMs today is analogous to what happened in

Accepted Answer

The type of growth happening in BEMs (Big Emerging Markets) today is most analogous to Europe after World War II, characterized by rapid economic development and reconstruction efforts.

Question 2

What is true about NAFTA?

Accepted Answer

NAFTA, the North American Free Trade Agreement, aimed to facilitate trade between Canada, Mexico, and the United States by implementing uniform customs procedures and regulations among other measures, thus making trade more efficient and predictable among the three countries.

Question 3

What key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Accepted Answer

The key provision of NAFTA that restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content, is the "rules of origin" provision. This provision requires that a certain percentage of a product must originate from within North America for it to qualify for the benefits of NAFTA, such as tariff exemptions.

Question 4

Which country announced that it would seek free trade with the United States shortly after the ratification of the United States-Canada Free Trade Area (CFTA)?

Accepted Answer

Mexico announced its intention to seek free trade with the United States shortly after the ratification of the United States-Canada Free Trade Area (CFTA), leading to the negotiation and establishment of the North American Free Trade Agreement (NAFTA).

Question 5

The transitional sector differs from the modern urban sector in that the transitional sector

Accepted Answer

The transitional sector consists of people who migrate from rural areas to urban areas, often seeking better opportunities, and are in the process of transitioning from rural to urban lifestyles.

Question 6

In the context of a political and economic revolution that has been taking place in Latin America, state ownership has resulted in

Accepted Answer

State ownership often leads to inefficiencies in public companies due to bureaucratic processes, lack of competition, and mismanagement.

Question 7

Which market sector has an expanding Westernized middle class?

Accepted Answer

The modern sector is typically associated with a growing Westernized middle class due to industrialization, urbanization, and increased access to global markets and technologies, which foster higher income levels and a lifestyle shift towards Western standards.

Question 8

________ required the United States, Canada, and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.

Accepted Answer

NAFTA, the North American Free Trade Agreement, was the agreement that required the United States, Canada, and Mexico to remove all tariffs and trade barriers over a 15-year period, culminating in the removal of all tariff barriers by 2008.

Question 9

The three members of the North American Free Trade Agreement (NAFTA) are

Accepted Answer

NAFTA is a trade agreement between Canada, Mexico, and the United States, aimed at eliminating trade barriers between the three countries.

Question 10

CARICOM established the CSME (CARICOM Single Market and Economy) with the major goal of

Accepted Answer

The answer of CARICOM established the CSME (CARICOM Single Market...

Question 11

The success of the Caribbean Free Trade Association led to the creation of the

Accepted Answer

The success of the Caribbean Free Trade Association (CARIFTA) led to the creation of the Caribbean Community and Common Market (CARICOM) in 1973, aiming to further economic integration and cooperation among its member states.

Question 12

Given the fact that NAFTA is now effective in the U.S., Mexico, and Canada, an American company that has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because

Accepted Answer

The primary reason for relocating the production plant to Mexico, given the context of NAFTA (North American Free Trade Agreement), would be the logistical and cost benefits associated with moving finished goods from Mexico to the United States. NAFTA facilitates easier and more cost-effective trade between the U.S., Mexico, and Canada, making Mexico an attractive location for American companies looking to reduce shipping times and costs.

Question 13

Which country has been identified by the Department of Commerce as a BEM (big emerging market)?

Accepted Answer

Mexico has been identified as a BEM (big emerging market) by the Department of Commerce due to its significant economic potential and growth prospects.

Question 14

Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment?

Accepted Answer

DR-CAFTA, or the Dominican Republic-Central America Free Trade Agreement, is the agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States focusing on tariff reductions to boost trade and employment.

Question 15

NAFTA differs from Mercosur in that NAFTA

Accepted Answer

NAFTA (North American Free Trade Agreement), now replaced by USMCA (United States-Mexico-Canada Agreement), aimed to eliminate barriers to trade and investment between the U.S., Canada, and Mexico, thus addressing and improving various aspects of doing business within North America. Choices A, B, C, and E describe characteristics of Mercosur, not NAFTA.

Question 16

Country A is a developing country that has a significant population and represents a sizable market for a wide range of products. It has a strong growth rate and is considered a regional economic driver. Based on this information, Country A can be classified as a ________ market.

Accepted Answer

Country A is described as a developing country with a significant population, strong growth rate, and a sizable market for a wide range of products, making it a "big emerging" market. These characteristics align with the definition of emerging markets, which are nations with social or business activity in the process of rapid growth and industrialization.

Question 17

Which country is a part of the free trade area known as CFTA?

Accepted Answer

The answer of Which country is a part of the...

Question 18

The CFTA was designed to

Accepted Answer

The Canada–United States Free Trade Agreement (CFTA) was aimed at eliminating tariffs and other trade barriers between Canada and the United States, fostering a closer economic partnership between the two countries.

Question 19

Developing countries with markets that are geographically large, have strong growth rates, are regional economic drivers, and represent sizable markets for a wide range of products have been identified by the U.S. Department of Commerce as ________ markets.

Accepted Answer

Big emerging markets are identified by the U.S. Department of Commerce as those with large geographic areas, strong growth rates, significant regional economic influence, and large markets for a variety of products.

Question 20

What country is a member of the free trade agreement DR-CAFTA?

Accepted Answer

DR-CAFTA stands for the Dominican Republic-Central America Free Trade Agreement, which includes the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. Costa Rica is the country among the options listed that is a member of this agreement.

Quiz 9: Economic Development and the Americas