Exam 8: International Economic Integration and Institutions

The Maastricht Treaty contains several high-impacting provisions. Which of the following is an exemption?

Economic integration is concerned with increasing trade barriers or impediments between at least two participating nations and the establishment of cooperation and coordination between them.

The IMF and World Bank are called the Bretton Woods Institutions because they were both established at Bretton Woods, New Hampshire.

The three most fundamental institutions affecting global level cooperation of nations are the WTO, the World Bank, and the IMF.

Which is NOT a form of economic integration?

Firms realign investment capital among members of the trading bloc once protective barriers have been removed altogether. This is an example of rationalized foreign direct investment.

Which of the following is NOT a form of economic integration?

International economic integration is propelled by several levels of cooperation. They are

The ______________________ is a strategy by which MNEs defend their preexisting market share achieved through exports by switching to direct production inside the region.

The IDA focuses on

Cartel members may also seek lower, as well as more stable, prices for their goods.

The ___________________is a strategy by which MNEs choose to ensure market penetration by investing directly in the region before the region is officially integrated.

The ________ size of the market improves economies of scale, which in turn elevate production nations.

LAFTA is an example of a free trade area form of economic integration.

Which of the following is NOT a NAFTA member?

With the exception of the ________, few regional agreements have specified the rules of non-tariff barrier reduction, intellectual property protection, and service trade.

Which of the following is NOT one of the objectives of THE WTO?

Escape clauses are allowances prohibited by the WTO.

NAFTA also includes side agreements on labor adjustment, technology, and import surges.

______________ is a particular customs union that allows not only free trade of products and services but also free mobility of production factors across national member borders.