Question 1

Geographically, only about 25 percent of Turkey's land mass is in Europe.

Accepted Answer

Turkey's land mass is primarily in Asia, with only about 3% of its territory, known as East Thrace, located in Europe.

Question 2

One could argue that regional and global integration are not complements, but substitutes to economic development of a particular region.

Accepted Answer

Regional and global integration can work together to support economic development rather than being substitutes. Regional integration can establish a foundation for global integration, while global integration can increase the potential benefits of regional integration. Both complement each other and can lead to greater economic growth and development.

Question 3

Both free-trade areas and customs unions include abolition of restrictions on factor movements.

Accepted Answer

Free-trade areas and customs unions primarily focus on reducing or eliminating tariffs and trade barriers on goods, not on factor movements like labor and capital. Factor movement liberalization is more characteristic of common markets.

Question 4

Three countries, X, Y, and Z are part of a member area where they have eliminated 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 against nonmembers. Such an area could be described as a(n)_____ area.
A) regional
B) spatial
C) open trade
D) embargo
E) free trade

Accepted Answer

An area where barriers to trade have been eliminated within the member countries and external tariffs are maintained against nonmembers is known as a free trade area.

Question 5

Remote regions with small local markets which Paul Collier calls the "bottom billion," are located in Central Asia; East, Central and West Africa; and the Pacific Islands.

Accepted Answer

This statement is accurate according to Paul Collier's definition of the "bottom billion."

Question 6

Although market access is essential for economic growth, proximity to major world markets is the biggest liability for just-in-time production, exports of perishable goods and tradable services.

Accepted Answer

The statement is opposite to the reality. Proximity to major world markets is actually an advantage for just-in-time production, exports of perishable goods, and tradable services as it reduces transportation costs and delivery time.

Question 7

According to the text, which of the following is NOT a stage of regional integration?
A) A customs union
B) An economic union
C) A free trade area
D) A common market
E) A embargo union

Accepted Answer

An embargo union is not a stage of regional integration, as it involves a group of countries imposing trade barriers and restrictions on a particular country. This is not a form of regional integration, which aims to reduce barriers and promote economic cooperation among member states. The other options (A, B, C, and D) are forms of regional integration, with varying degrees of economic integration among member states.

Question 8

CAFTA is the most highly evolved example of regional integration in the world.

Accepted Answer

While CAFTA (Central America Free Trade Agreement) is a significant example of regional integration, it is not the most highly evolved example in the world. The European Union (EU) can be considered the most highly evolved example of regional integration, as it involves free movement of people, goods, and services among its member states, an overarching legal system, and a common currency.

Question 9

The World Bank's World Development Report (WDR), titled "Reshaping Economic Geography," analyzes trade and regional economic integration through the lens of economic geography (i.e., market size, location, and openness to trade). The WDR concludes that positive changes within these three categories are essential for successful regional integration.

Accepted Answer

The statement accurately reflects the main findings of the World Bank's World Development Report on Reshaping Economic Geography.

Question 10

According to the Cultural Perspective box in Chapter 03, when French President, Nicolas Sarkozy, assumed his six-month European Union presidency in July 2008, the first initiative he launched was the Union for the _____.
A) Northeast
B) Southwest
C) North Americans
D) Mediterranean
E) Australians

Accepted Answer

According to the Cultural Perspective box in Chapter 03, when French President, Nicolas Sarkozy, assumed his six-month European Union presidency in July 2008, the first initiative he launched was the Union for the Mediterranean.

Question 11

ASEAN, headquartered in New Delhi, India, was established in August 1967 by five founding members: India, Malaysia, the Philippines, Singapore, and Thailand.

Accepted Answer

ASEAN (Association of Southeast Asian Nations) was established in August 1967 by five founding members: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Its headquarters is located in Jakarta, Indonesia. India became a member of ASEAN in 1996.

Question 12

According to the text, which of the following is the third stage of regional integration?
A) A customs union
B) An economic union
C) A free trade area
D) A common market
E) A political union

Accepted Answer

The text mentions that the third stage of regional integration is a common market, which allows for the free movement of goods, services, capital, and labor among member countries.

Question 13

In 2003, ASEAN leaders agreed to establish an ASEAN Community based on three pillars: ASEAN Security Community; ASEAN Economic Community; and ASEAN Socio-Cultural Community.

Accepted Answer

This statement is true. In 2003, ASEAN leaders agreed to establish an ASEAN Community based on three pillars: ASEAN Security Community; ASEAN Economic Community; and ASEAN Socio-Cultural Community.

Question 14

With uncertainty surrounding the outcome of the Doha Round of trade negotiations, countries (large and small)are clamoring for bilateral or regional trade agreements to meet their specific agendas causing economists to be concerned about the prospects of creating a truly open global economic system that benefits all countries.

Accepted Answer

The statement accurately describes the concerns of economists regarding the current state of global trade negotiations and the trend towards bilateral and regional agreements.

Question 15

NAFTA is a comprehensive free-trade agreement among Canada, United States, and Mexico that addresses issues ranging from protection of workers' rights and the environment to phased reduction of tariff and non-tariff trade barriers, which were finally eliminated in 2009.

Accepted Answer

NAFTA indeed addresses issues such as protection of workers' rights and the environment, and it also gradually eliminated trade barriers between Canada, United States, and Mexico, which were completely removed by 2009.

Question 16

In 1969, frustrated by the lack of progress in LAFTA, Bolivia, Chile, Colombia, Ecuador, and Peru joined in creating the Andean Group, which aimed to create economic integration through reduced taxes, a common external tariff, and investment in the poorer industrial areas of their respective countries.

Accepted Answer

This statement is true.

Question 17

Through various treaties such as the Maastricht Treaty, the Copenhagen Treaty, the Treaty of Nice, and the Lisbon Treaty, the EU is deepening and strengthening its institutional (economic, political, social, and defense)linkages; this will hopefully, enable the EU to act as one country that will effectively compete with the U.S.

Accepted Answer

The EU is indeed deepening and strengthening its institutional linkages through various treaties, with the goal of increasing its competitiveness and ability to act as a unified entity.

Question 18

A growing ASEAN concern is the economic ascendancy of Turkey, which as a major low-cost manufacturing center, has been one of the world's most attractive destinations for foreign direct investment.

Accepted Answer

There is no evidence or indication that ASEAN is concerned about Turkey's economic ascendancy as a major low-cost manufacturing center or as an attractive destination for foreign direct investment. The sentence seems to be stating a hypothetical situation rather than a fact.

Question 19

The appropriate approach for countries interested in regional integration could include the following three fundamentals: start small, think global, and compensate the least fortunate.

Accepted Answer

Starting small allows for easier management and coordination among countries, while thinking globally ensures that integration efforts align with global objectives and standards. Additionally, compensating the least fortunate member countries helps to address inequalities and promote equitable benefits from integration.

Question 20

_____ refers to the process of allowing efficient geographic distribution of business activities within and among countries.
A) Regional integration
B) Spatial transformations
C) Free trade
D) Economic integration
E) Economic geography

Accepted Answer

Spatial transformations refer to the process of allowing efficient geographic distribution of business activities within and among countries.

Quiz 3: Regional Economic Integration