Question 1

Regional proximity is not an important facilitator of economic cooperation.

Accepted Answer

Regional proximity is an important facilitator of economic cooperation. Communication and transportation are facilitated by regional proximity, and these help to facilitate economic cooperation.

Question 2

In the case of the Southern Cone Common Market (MERCOSUR), the member countries agree with the associate members on the common external tariffs they should impose on international business entering the region.

Accepted Answer

In the case of the Southern Cone Common Market (MERCOSUR), the member countries disagree with the associate members on the common external tariffs they should impose on international business entering the region.

Question 3

Countries in East Africa formerly colonized by Belgium share a common second language (French), and have extensive economic and political ties with Belgium.

Accepted Answer

Countries in East Africa formerly colonized by Belgium share a common second language (French), as well as extensive economic and political ties with the former colonist.

Question 4

Iceland, Liechtenstein, Norway, Switzerland, and Germany are the current members of the European Free Trade Association.

Accepted Answer

The current member countries of the EFTA are Iceland, Liechtenstein, Norway and Switzerland. Germany was never a member of the EFTA.

Question 5

The goal of ASEAN is to ultimately create a free trade area where tariff and non-tariff barriers are eliminated.

Accepted Answer

ASEAN is the main example of regional economic integration in Asia. Its goal is to create a free trade area where tariff and non-tariff barriers are eliminated. This will provide a substantial market of over 330 million consumers to companies in the region.

Question 6

In regional economic integration, most countries begin with developing a common market.

Accepted Answer

In the beginning of economic integration, most countries start at the industry-specific bilateral or multilateral agreement level. A common market is a more complex regional agreement usually reserved for a more advanced stage.

Question 7

People in neighboring countries often share a language, as well as other cultural elements.

Accepted Answer

People in neighboring countries often share a language, as well as other cultural elements, such as traditions, norms, and religion. North Africa and the Middle East are examples of this phenomenon.

Question 8

The Asia-Pacific Economic Cooperation (APEC) is attempting to forge an institutional integration that will lead to a free trade association.

Accepted Answer

Although APEC does not attempt to forge such an integration, it has nevertheless been instrumental in fostering free trade.

Question 9

Under the NAFTA agreement, in order to benefit from a duty-free status, goods must have a 51% North American content.

Accepted Answer

Under the NAFTA agreement, in order to benefit from a duty-free status, goods must have a 60% North American content.

Question 10

Countries with a different level of economic development are more likely to be successful in establishing and maintaining regional economic integration mechanisms than countries of similar levels of economic development because the more powerful country acts as a "benevolent dictator."

Accepted Answer

Countries with a similar level of economic development are more likely to be successful in establishing and maintaining regional economic integration mechanisms than countries of different levels of economic development. In an unbalanced relationship the more powerful country is likely to further its own interest at the expense of countries that lag behind it on economic development.

Question 11

A common language between neighboring countries facilitates commerce and marketing.

Accepted Answer

The commonality of language and other elements of culture facilitate interaction between neighboring countries and promote cooperation: In an economic relationship in which culture does not constitute a barrier to communication, individuals are more likely to understand their counterparts and their position. In addition, a common language facilitates commerce and marketing in particular.

Question 12

One of the more important obstacles to regional economic and political integration is the threat of losing national identity and sovereignty as part of the larger regional structure.

Accepted Answer

One of the more important obstacles to regional economic and political integration is the threat of losing national identity and sovereignty as part of the larger regional structure. Countries have many icons of national identity that generations have fought for centuries to maintain.

Question 13

The countries of the former Soviet Union have experienced Russian economic, political, and cultural dominance. As a result, Russian is spoken in many countries in Europe and Asia that were formerly part of the Soviet Empire.

Accepted Answer

Russia's economic, political, and cultural dominance in the former Soviet Union has resulted, for example, in the use of the Russian language from the Baltics (Estonia, Lithuania, and Latvia) and the Ukraine, to the Asian republics of the former federation, such as Turkmenistan and Azerbaijan.

Question 14

Former colonies of the British Empire form the Commonwealth of Independent States, a body that meets periodically to address issues of common concern and that recognizes the British monarchy as its symbolic leader.

Accepted Answer

Former colonies of the British Empire form the Commonwealth of Nations, a body that meets periodically to address issues of common concern and that recognizes the British monarchy as its symbolic leader.

Question 15

In spite of the national vote against joining the European Union, Switzerland is engaging in bilateral negotiations, securing agreements that would help it to join.

Accepted Answer

In spite of the national vote against joining the European Union, Switzerland is engaging in bilateral negotiations, securing agreements that would help it join. It has negotiated issues in the area of the collection of statistics, on the environment, agricultural production and customs fraud, cross-border security, youth and education, among others.

Question 16

In a free trade agreement, countries are free to charge their own tariffs to all entities external to the free trade market.

Accepted Answer

A free trade agreement takes place between two or more countries and it involves a reduction in, or even elimination of, customs duties and other trade barriers on all goods and services traded between the member countries. Countries are free to charge their own tariffs to all entities external to the free trade market.

Question 17

A history of dominance by one nation in a region often leads to shared cultural elements among the different peoples in that region.

Accepted Answer

A history of dominance by one nation in a region often leads to shared cultural elements, such as language and culture, among the different peoples in that region.

Question 18

The European Union is characterized by a shared regional culture.

Accepted Answer

The European Union is not characterized by a shared regional culture. The Union is successful primarily due to economic commonalities, not cultural similarities.

Question 19

The Commonwealth of Independent States (CIS) has never had any noteworthy economic content.

Accepted Answer

The text uses the CIS as an example of a political agreement. The 12 non-Baltic successors to the Soviet Union formed the CIS, but as the text states, nothing important came out of the agreement.

Question 20

None of the European Free Trade Association (EFTA) members have joined the European Monetary Union.

Accepted Answer

Norway participated in the Schengen agreement on the elimination of border controls, but none of the EFTA countries have joined the European Monetary Union.

Quiz 4: Regional Economic and Political Integration