Question 1

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 not a barrier in Japan for global marketers. In fact, it may be a disadvantage as Japanese consumers often prefer products that are tailored to their specific cultural needs and preferences. The other options listed are all potential barriers that global marketers may face when entering the Japanese market.

Question 2

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

Question 3

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, so it is not included in the DR-CAFTA free trade area despite being a party to the agreement with the United States bilaterally.

Question 4

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

Accepted Answer

About 70% of Ecuador's flower harvest is exported to the United States.

Question 5

As a result of CFTA, the U.S.automakers participate in the Canadian auto market, thereby benefiting due to:

Accepted Answer

The answer of As a result of CFTA, the U.S.automakers...

Question 6

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

This form of economic cooperation is known as a free trade area, where member countries eliminate internal barriers to trade but maintain their own trade policies with non-member countries. Economic union involves not just the elimination of barriers to trade but also the harmonization of economic policies among member states, while a customs union entails the establishment of a common external tariff on goods imported from non-member countries. A common market goes beyond the free movement of goods and services to also include labor and capital mobility among member states.

Question 7

The highest level in the pyramid of hierarchy of Preferential Trade Agreements consists of:

Accepted Answer

The highest level in the pyramid of hierarchy of Preferential Trade Agreements is an economic union. In an economic union, member countries completely eliminate barriers to trade, harmonize economic policies, and allow for free movement of goods, services, capital, and labor among member countries. The European Union is an example of an economic union.

Question 8

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor.An example of emergency measures implemented by Argentina include:

Accepted Answer

Devaluing the currency made Argentine exports cheaper and more competitive in the global market, which helped to boost the country's economy. This was a key emergency measure that helped Argentina emerge from its economic crisis.

Question 9

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

Accepted Answer

Mexican avocado growers can only ship avocados to the U.S. in winter months due to seasonal restrictions that were part of the trade agreements to protect U.S. avocado growers.

Question 10

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 concerned with defending their privileged trading position with the United States, as it is a major trading partner and has significant economic influence in the region.

Question 11

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

Accepted Answer

Singapore ranks number one in terms of two-way trade with the United States among ASEAN countries. In 2019, the total bilateral trade between Singapore and the United States amounted to $57.5 billion.

Question 12

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation:

Accepted Answer

The World Trade Organization (WTO) is the successor of the General Agreement on Tariffs and Trade (GATT), which was established in 1948. The WTO was created to provide a more comprehensive framework for international trade negotiations and dispute resolution.

Question 13

Agricultural subsidies and quotas that developed outside the multilateral framework under GATT remained a divisive issue because:

Accepted Answer

Agricultural subsidies and quotas developed outside the multilateral framework have remained a divisive issue because affluent countries protect and subsidize their own farm production, making it difficult for farmers from developing countries to compete on a level playing field and resulting in an imbalance of trade.

Question 14

Greece is not the only European country that is in economic crisis.All of the following countries are facing problems in that region except:

Accepted Answer

Greece is the country mentioned as being in an economic crisis, so it cannot be the exception among the listed countries.

Question 15

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 16

Arrange the following in order from lowest to highest level of economic integration.

Accepted Answer

The correct order of economic integration from lowest to highest level is: free trade area, customs union, common market, and economic union. This is because a free trade area eliminates tariffs and trade barriers among member countries, but each country retains its own trade policies outside the group. A customs union goes further by having a common external tariff and trade policies with non-member countries. A common market adds free movement of goods, services, and factors of production (such as labor and capital) among member countries. An economic union is the highest level of integration, including a common currency, coordinated monetary and fiscal policies, and complete economic harmonization among member countries.

Question 17

NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that:

Accepted Answer

NAFTA creates a free trade area by eliminating tariffs on goods traded between Canada, the United States, and Mexico. This means that there are no restrictions on the movement of goods across borders, but there are no common external tariffs or trade policies. The other options given (A, C, D, and E) are not applicable in the context of NAFTA's creation of a free trade area.

Question 18

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services and welfare?

Accepted Answer

An Economic union is a form of regional cooperation agreement that involves the creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services and welfare. It goes beyond the scope of a common market, which only focuses on the free movement of goods, services, capital, and people. Examples include the European Union's economic and monetary union through the adoption of the euro currency.

Question 19

The form of economic cooperation that calls for 1)eliminating internal barriers to trade and 2)establishing common external barriers is known as a(n)________.

Accepted Answer

Customs union is the only option that specifically mentions establishing common external barriers, while also eliminating internal barriers to trade. Free trade area and common market both eliminate internal barriers to trade, but do not necessarily establish common external barriers. Economic union goes beyond just trade cooperation and involves significant coordination of economic policies among member countries. Duplicate answer D (free trade area) can be eliminated.

Question 20

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

Accepted Answer

BRIC (Brazil, Russia, India, China) is not a preferential trading arrangement in Latin America. It is a term used to refer to emerging economies in the world.

Quiz 3: Regional Market Characteristics and Preferential Trade Agreements