Question 1

Essentially, a free trade area (FTA) provides its members with:

Accepted Answer

A free trade area provides its members with a mass market without barriers to impede the flow of goods and services.

Question 2

As George Platt examines markets that might match his company's investment requirements; he is particularly struck by the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt examining when he reviews transportation networks?

Accepted Answer

Geographical closeness does facilitate the functioning of a common market. It is seen that transportation networks are likely to be interrelated and well developed when countries are close together.

Question 3

Nations with _____ economic bases are least likely to encounter frictions in the development and operation of a common market unit.

Accepted Answer

Nations with complementary economic bases are least likely to encounter frictions in the development and operation of a common market unit.

Question 4

The Middle East has been very aggressive in forming multinational market groups.

Accepted Answer

The Middle East has been less aggressive in the formation of successfully functioning multinational market groups.

Question 5

At the most general level, the _____ represents the most important and comprehensive trade agreement in history.

Accepted Answer

The World Trade Organization represents the most important and comprehensive trade agreement in history.

Question 6

The most basic economic integration and cooperation is the:

Accepted Answer

The most basic economic integration and cooperation is the regional cooperation for development (RCD). In the RCD arrangement, governments agree to participate jointly to develop basic industries beneficial to each economy.

Question 7

The Arab Gulf states, Egypt, and Morocco have worked out an agreement on an Arab Free Trade Area, sometimes called the Gulf Arabian Free Trade Area (GAFTA).

Accepted Answer

GAFTA stands for Greater Arab Free Trade Area.

Question 8

A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.

Accepted Answer

In a free trade area, an agreement is made between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.

Question 9

One of the first factors that gave the EU an edge over others in the process of becoming a common market was/were:

Accepted Answer

One of the first major strengths of the European Union was its transportation network; the opening of the tunnel between England and France further bound this common market.

Question 10

The World Trade Organization is wholly dedicated to ____.

Accepted Answer

The World Trade Organization, with its 153 members and 30 observers, is wholly dedicated to making trade among nations more efficient.

Question 11

The initial aim of a multinational market is to protect businesses that operate within its borders.

Accepted Answer

The initial aim of a multinational market is to protect businesses that operate within its borders.

Question 12

_____ is a comprehensive trade agreement that addresses, and in most cases improves, all aspects of doing business within North America.

Accepted Answer

NAFTA is an acronym for North American Free Trade Agreement.

Question 13

Regional economic cooperative agreements have been around since:

Accepted Answer

Regional economic cooperative agreements have been around since the end of World War II.

Question 14

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called:

Accepted Answer

Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.

Question 15

With respect to political factors, which of the following is one of the most cherished possessions of any nation?

Accepted Answer

Before entering into an economic union, a country should be clear about the advantages of the economic union. Moreover, the benefits must greatly outweigh the disadvantages before nations forgo any part of their sovereignty. It is therefore implied that state sovereignty is a cherished possession of any nation.

Question 16

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions?

Accepted Answer

Markets are enlarged through preferential tariff treatment for participating members, common tariff barriers against outsiders, or both.

Question 17

The most advanced and viable of Africa's regional organizations is called the Southern African Development Community.

Accepted Answer

The Southern African Development Community is the most advanced and viable of Africa's regional organizations.

Question 18

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which single market is being talked about?

Accepted Answer

Following the success of the European Steel and Coal Community, a global economic revolution began in 1958 when the European Economic Community was ratified and Europe took the step that would ultimately lead to the present-day European Union (EU).It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances.

Question 19

An expressed goal of a multinational market is to give an advantage to the companies within the market in their dealings with other countries of the market group.

Accepted Answer

In a multinational market, an expressed goal is to give an advantage to the companies within the market in their dealings with other countries of the market group.

Question 20

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European.

Accepted Answer

Cultural similarity eases the shock of economic cooperation with other countries. The more similar the culture, the more likely an agreement is to succeed, because members understand the outlook and viewpoints of their colleagues. Although there is great cultural diversity in the European Union, key members share a long-established Christian heritage and are commonly aware of being European.

Quiz 10: Europe, Africa, and the Middle East

Essentially, a free trade area (FTA) provides its members with:

Nations with _____ economic bases are least likely to encounter frictions in the development and operation of a common market unit.

The Middle East has been very aggressive in forming multinational market groups.

At the most general level, the _____ represents the most important and comprehensive trade agreement in history.

The most basic economic integration and cooperation is the:

The Arab Gulf states, Egypt, and Morocco have worked out an agreement on an Arab Free Trade Area, sometimes called the Gulf Arabian Free Trade Area (GAFTA).

A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.

One of the first factors that gave the EU an edge over others in the process of becoming a common market was/were:

The World Trade Organization is wholly dedicated to ____.

The initial aim of a multinational market is to protect businesses that operate within its borders.

_____ is a comprehensive trade agreement that addresses, and in most cases improves, all aspects of doing business within North America.

Regional economic cooperative agreements have been around since:

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called:

With respect to political factors, which of the following is one of the most cherished possessions of any nation?

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions?

The most advanced and viable of Africa's regional organizations is called the Southern African Development Community.

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which single market is being talked about?

An expressed goal of a multinational market is to give an advantage to the companies within the market in their dealings with other countries of the market group.

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European.