Deck 8: Regional Economic Integration

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Question
A(n)________ requires member nations to harmonize their tax,monetary,and fiscal policies and create a common currency.

A) customs union
B) economic union
C) free trade area
D) common market
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Question
Which of the following is the greatest extent of regional economic integration?

A) free trade area
B) political union
C) common market
D) customs union
Question
Higher levels of trade between nations result in ________.

A) higher product prices
B) lesser specialization
C) greater purchasing power
D) trade diversion
Question
The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products,people,or capital is called ________.

A) regional economic integration
B) protectionism
C) mercantilism
D) economic nationalism
Question
Regional economic integration is also referred to as ________.

A) mercantilism
B) nationalism
C) protectionism
D) regionalism
Question
Countries belonging to a ________ maintain whatever policies they see fit against nonmember countries.

A) economic union
B) customs union
C) common market
D) free trade area
Question
In a(n)________,members eliminate internal trade barriers,adopt a common external policy toward nonmembers,and eliminate barriers to the movement of the factors of production.

A) free trade area
B) customs union
C) common market
D) economic union
Question
Which of the following is an important goal of regional economic integration?

A) to increase the selling prices of products
B) to raise the living standards of people
C) to limit the choice of products available to customers
D) to establish a socialist government
Question
The least amount of sovereignty that must be surrendered to a trading bloc occurs in a ________.

A) economic union
B) common market
C) free trade area
D) political union
Question
Which of the following is a potential drawback of regional economic integration?

A) ethnocentricity
B) trade diversion
C) economic nationalism
D) protectionism
Question
An increase in the level of trade among nations that results from regional economic integration is called ________.

A) trade diversion
B) mercantilism
C) trade creation
D) economic nationalism
Question
Which of the following is a result of trade creation?

A) The demand for goods tends to increase.
B) Purchasing power of consumers decreases.
C) Consumers have a limited choice for selection of goods.
D) Imported goods are seldom available at lower prices.
Question
Economic integration whereby countries remove barriers to trade and the movement of labor and capital among members,set a common trade policy against nonmembers,and coordinate their economic policies is called a(n)________.

A) customs union
B) common market
C) economic union
D) free trade area
Question
The main difference between a free trade area and a customs union is that the members of a customs union ________.

A) agree to the free movement of all factors of production
B) harmonize their tax, monetary, and fiscal policies and create a common currency
C) agree to treat trade with all nonmember nations in a similar manner, by having a common external tariff.
D) accept a common stance on economic and political policies regarding nonmember nations
Question
A(n)________ eliminates trade barriers among member countries,and is the lowest level of regional economic integration.

A) free trade area
B) customs union
C) common market
D) economic union
Question
Country X wants to encourage trade by eliminating trade barriers with the three countries along its borders.However,Country X wants each of the countries to be able to establish their own trade policies even though this may lead to problems with trade deflection.Which form of economic integration is Country X most likely considering?

A) economic union
B) common market
C) customs union
D) free trade area
Question
A(n)________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

A) free trade area
B) customs union
C) common market
D) economic union
Question
The European Union is an example of ________ integration.

A) regional
B) relative
C) global
D) bilateral
Question
Which of the following is true of trade diversion?

A) It increases the purchasing power of consumers.
B) It increases the level of trade between nonmember nations.
C) It generally increases the prices of products in a nation.
D) It guarantees consumers a wider selection of goods.
Question
Economic integration whereby countries remove all barriers to trade among themselves,but each country determines its own barriers against nonmembers,is called a(n)________.

A) economic union
B) customs union
C) common market
D) free trade area
Question
A result of trade creation is that buyers pay lower prices for imported goods and services after trade barriers are removed.
Question
Some countries in Moonland Union are interested not just in free trade among themselves and a common trade policy against nonmembers,but also in removing all barriers to the movement of labor and capital among themselves.This type of integration is best described as a ________.

A) free trade area
B) preferential trading area
C) customs union
D) common market
Question
A group of nations in a geographic region undergoing economic integration is called a regional trading bloc.
Question
The greatest benefit of regional integration is trade diversion.
Question
The regional trading bloc that Zucoland will be joining is most likely a(n)________.

A) economic union
B) free trade area
C) customs union
D) political union
Question
Trade agreements hinder competitors from other nations to enter the domestic market.
Question
If all countries in the bloc are asked to give up the greatest amount of sovereignty,they would most likely be joining a(n)________.

A) economic union
B) free trade area
C) customs union
D) political union
Question
Countries belonging to a free trade area must concede a certain amount of their national autonomy to the supranational union of which they are a part.
Question
A common market requires that member nations create a common currency.
Question
Scenario: Moonland Union
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate.
As a first stage of cooperation,the countries agree to remove all barriers to trade among themselves.Each country also maintains policies it sees fit against nonmembers.At this stage,Moonland Union can be described as a ________.

A) free trade area
B) political union
C) common market
D) customs union
Question
Country X advocates the greatest level of integration possible for the member nations of the Moonland Union.Which of the following is Country X most likely to support?

A) political union
B) free trade area
C) customs union
D) economic union
Question
Country M wants member nations to harmonize their tax,monetary,and fiscal policies and wants to create a common currency.Country M is requesting for the creation of a(n)________ in the Moonland nations.

A) free trade area
B) economic union
C) customs union
D) common market
Question
Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?

A) trade diversion
B) increased national sovereignty
C) greater consensus
D) production shifts to low-wage nations
Question
Scenario: Moonland Union
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate.
If these twenty-six nations continue to eliminate all barriers to trade among themselves and set a common trade policy against nonmembers,they would create a ________.

A) free trade area
B) preferential trading area
C) customs union
D) political union
Question
A common market area is the greatest extent of national integration.
Question
A political union makes it mandatory for nations to accept a common stance on all economic and political policies within their territories.
Question
The increase in the level of trade between nations that results from regional economic integration is called trade creation.
Question
In a customs union,each country can maintain whatever policy it sees fit against nonmember countries.
Question
Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?

A) increased national sovereignty
B) increased military security
C) trade diversion
D) higher-wage employment
Question
Economic integration can unintentionally reward a less efficient producer within a trading bloc.
Question
Which of the following treaties was signed by the members of the European Coal and Steel Community in 1957 for creating the European Economic Community?

A) the Treaty of Rome
B) the Maastricht Treaty
C) the Treaty of Paris
D) the Treaty of Versailles
Question
A benefit of regional economic integration is that it always expands employment opportunities in all nations.
Question
The least amount of sovereignty that must be surrendered to a trading block occurs in a free trade agreement.
Question
Differentiate among the five levels of economic and political integration.
Question
The primary purpose of the Gulf Cooperation Council (GCC)at its formation was to create a political union between Iraq and Iran.
Question
Which of the following countries has been facing difficulties in negotiations regarding its application for European Union membership?

A) Bulgaria
B) Czech Republic
C) Romania
D) Turkey
Question
In regional economic integration,industries that require mostly unskilled labor tend to shift production to low-wage nations within a trading bloc.
Question
Discuss "political union" as a level of economic integration and "political cooperation" as a benefit of economic integration.
Question
In 1951,Belgium,France,West Germany,Italy,Luxembourg,and the Netherlands signed the Treaty of Paris and created the ________.

A) European Union
B) European Economic Community
C) European Coal and Steel Community
D) European Community
Question
Explain the concepts of trade creation and trade diversion.Who are the winners and losers in each scenario?
Question
The goal of the Single European Act was to remove remaining barriers,increase harmonization,and thereby enhance the competitiveness of European companies.
Question
Which of the following materialized the EU's goals of removing trade barriers,increasing harmonization,and enhancing the competitiveness of European companies?

A) the Maastricht Treaty
B) the European Monetary Union
C) the Single European Act
D) the Copenhagen Criteria
Question
The European Union plan that established its own central bank and currency in January 1999 is known as the ________.

A) Single European Act
B) European Monetary Union
C) Copenhagen Criteria
D) Southern Common Market
Question
When trade diversion occurs,buyers will likely pay more for products.
Question
Currently the most sophisticated and advanced example of regional integration is occurring in ________.

A) Asia
B) Europe
C) North America
D) Africa
Question
Which of the following statements about the euro is true?

A) It was adopted by all existing EU members when it was first initiated.
B) It must be adopted by countries as a precondition to joining the EU.
C) It cannot be used by countries that are not members of the EU.
D) It was designed to eliminate currency as a barrier to trade in the EU.
Question
The ________ called for banking in a single common currency,setting up of monetary and fiscal targets,and political union of the European Union members.

A) Maastricht Treaty
B) European Monetary Union
C) Single European Act
D) Copenhagen Criteria
Question
Discuss free trade areas as a level of regional economic integration.How can regional integration enable employment opportunities?
Question
Discuss the benefits and drawbacks of regional integration.
Question
The ________ is the common currency of the European Union.

A) franc
B) pound
C) euro
D) mark
Question
The European Free Trade Association was formed in 1960 to focus on trade in ________.

A) consumer goods
B) agricultural goods
C) industrial goods
D) services
Question
The main purpose of the ________ is to debate and amend legislation proposed by the European Commission of the EU.

A) European Parliament
B) Council of the European Union
C) Court of Auditors
D) Court of Justice
Question
Which of the following is currently a member of the European Free Trade Association?

A) Slovakia
B) Ireland
C) Norway
D) Italy
Question
Which of the following institutions is least likely to play an important role in monitoring and enforcing economic and political integration in the European Union?

A) European Parliament
B) Council of the European Union
C) European Court of Human Rights
D) European Commission
Question
The Court of Justice is the court of appeals of the European Union.
Question
No proposed legislation becomes EU law unless the ________ votes it into law.

A) Council of the European Union
B) European Parliament
C) Court of Auditors
D) European Commission
Question
The Court of Justice is the ________ of the European Union.

A) court of honor
B) court of appeals
C) small-claims court
D) arbitral tribunal
Question
Which of the following countries is a member of the North American Free Trade Agreement (NAFTA)?

A) Costa Rica
B) Honduras
C) Venezuela
D) Canada
Question
The European Union (EU)and European Free Trade Association (EFTA)created the European Economic Area (EEA).
Question
The Maastricht Treaty called for political union of the member nations.
Question
The European Commission is the ________ body of the European Union.

A) legislative
B) executive
C) financial
D) monitoring
Question
Describe the structure of the European Union.
Question
Like the European Union commissioners,EU justices are required to act in the interest of their native countries.
Question
Which of the following is best classified as an economic union?

A) Southern Common Market (MERCOSUR)
B) European Union (EU)
C) North American Free Trade Agreement (NAFTA)
D) Andean Community
Question
For countries to become members of the European Union,they have to meet certain demands laid down by the EU referred to as the ________.

A) Copenhagen Criteria
B) Closer Economic Relations Agreement
C) Andean Community
D) Euro-Plus Pact
Question
The Council of the European Union is the ________ body of the European Union.

A) legislative
B) executive
C) judicial
D) monitoring
Question
The Council of the European Union is the legislative body of the EU.
Question
Ombudsman and Data Protection Supervisor are the EU institutions that fulfill secondary and support roles.
Question
The European Free Trade Association focuses on trade only in consumer goods,and not in manufactured goods.
Question
While ________ encourages free trade among Canada,Mexico and the United States,manufacturers and distributors must abide by local content requirements and rules of origin.

A) NAFTA
B) LAFTA
C) CAN
D) CAFTA-DR
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Deck 8: Regional Economic Integration
1
A(n)________ requires member nations to harmonize their tax,monetary,and fiscal policies and create a common currency.

A) customs union
B) economic union
C) free trade area
D) common market
B
2
Which of the following is the greatest extent of regional economic integration?

A) free trade area
B) political union
C) common market
D) customs union
B
3
Higher levels of trade between nations result in ________.

A) higher product prices
B) lesser specialization
C) greater purchasing power
D) trade diversion
C
4
The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products,people,or capital is called ________.

A) regional economic integration
B) protectionism
C) mercantilism
D) economic nationalism
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
5
Regional economic integration is also referred to as ________.

A) mercantilism
B) nationalism
C) protectionism
D) regionalism
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
6
Countries belonging to a ________ maintain whatever policies they see fit against nonmember countries.

A) economic union
B) customs union
C) common market
D) free trade area
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
7
In a(n)________,members eliminate internal trade barriers,adopt a common external policy toward nonmembers,and eliminate barriers to the movement of the factors of production.

A) free trade area
B) customs union
C) common market
D) economic union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
8
Which of the following is an important goal of regional economic integration?

A) to increase the selling prices of products
B) to raise the living standards of people
C) to limit the choice of products available to customers
D) to establish a socialist government
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
9
The least amount of sovereignty that must be surrendered to a trading bloc occurs in a ________.

A) economic union
B) common market
C) free trade area
D) political union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
10
Which of the following is a potential drawback of regional economic integration?

A) ethnocentricity
B) trade diversion
C) economic nationalism
D) protectionism
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
11
An increase in the level of trade among nations that results from regional economic integration is called ________.

A) trade diversion
B) mercantilism
C) trade creation
D) economic nationalism
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
12
Which of the following is a result of trade creation?

A) The demand for goods tends to increase.
B) Purchasing power of consumers decreases.
C) Consumers have a limited choice for selection of goods.
D) Imported goods are seldom available at lower prices.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
13
Economic integration whereby countries remove barriers to trade and the movement of labor and capital among members,set a common trade policy against nonmembers,and coordinate their economic policies is called a(n)________.

A) customs union
B) common market
C) economic union
D) free trade area
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
14
The main difference between a free trade area and a customs union is that the members of a customs union ________.

A) agree to the free movement of all factors of production
B) harmonize their tax, monetary, and fiscal policies and create a common currency
C) agree to treat trade with all nonmember nations in a similar manner, by having a common external tariff.
D) accept a common stance on economic and political policies regarding nonmember nations
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
15
A(n)________ eliminates trade barriers among member countries,and is the lowest level of regional economic integration.

A) free trade area
B) customs union
C) common market
D) economic union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
16
Country X wants to encourage trade by eliminating trade barriers with the three countries along its borders.However,Country X wants each of the countries to be able to establish their own trade policies even though this may lead to problems with trade deflection.Which form of economic integration is Country X most likely considering?

A) economic union
B) common market
C) customs union
D) free trade area
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
17
A(n)________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

A) free trade area
B) customs union
C) common market
D) economic union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
18
The European Union is an example of ________ integration.

A) regional
B) relative
C) global
D) bilateral
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
19
Which of the following is true of trade diversion?

A) It increases the purchasing power of consumers.
B) It increases the level of trade between nonmember nations.
C) It generally increases the prices of products in a nation.
D) It guarantees consumers a wider selection of goods.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
20
Economic integration whereby countries remove all barriers to trade among themselves,but each country determines its own barriers against nonmembers,is called a(n)________.

A) economic union
B) customs union
C) common market
D) free trade area
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
21
A result of trade creation is that buyers pay lower prices for imported goods and services after trade barriers are removed.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
22
Some countries in Moonland Union are interested not just in free trade among themselves and a common trade policy against nonmembers,but also in removing all barriers to the movement of labor and capital among themselves.This type of integration is best described as a ________.

A) free trade area
B) preferential trading area
C) customs union
D) common market
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
23
A group of nations in a geographic region undergoing economic integration is called a regional trading bloc.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
24
The greatest benefit of regional integration is trade diversion.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
25
The regional trading bloc that Zucoland will be joining is most likely a(n)________.

A) economic union
B) free trade area
C) customs union
D) political union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
26
Trade agreements hinder competitors from other nations to enter the domestic market.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
27
If all countries in the bloc are asked to give up the greatest amount of sovereignty,they would most likely be joining a(n)________.

A) economic union
B) free trade area
C) customs union
D) political union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
28
Countries belonging to a free trade area must concede a certain amount of their national autonomy to the supranational union of which they are a part.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
29
A common market requires that member nations create a common currency.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
30
Scenario: Moonland Union
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate.
As a first stage of cooperation,the countries agree to remove all barriers to trade among themselves.Each country also maintains policies it sees fit against nonmembers.At this stage,Moonland Union can be described as a ________.

A) free trade area
B) political union
C) common market
D) customs union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
31
Country X advocates the greatest level of integration possible for the member nations of the Moonland Union.Which of the following is Country X most likely to support?

A) political union
B) free trade area
C) customs union
D) economic union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
32
Country M wants member nations to harmonize their tax,monetary,and fiscal policies and wants to create a common currency.Country M is requesting for the creation of a(n)________ in the Moonland nations.

A) free trade area
B) economic union
C) customs union
D) common market
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
33
Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?

A) trade diversion
B) increased national sovereignty
C) greater consensus
D) production shifts to low-wage nations
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
34
Scenario: Moonland Union
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate.
If these twenty-six nations continue to eliminate all barriers to trade among themselves and set a common trade policy against nonmembers,they would create a ________.

A) free trade area
B) preferential trading area
C) customs union
D) political union
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
35
A common market area is the greatest extent of national integration.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
36
A political union makes it mandatory for nations to accept a common stance on all economic and political policies within their territories.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
37
The increase in the level of trade between nations that results from regional economic integration is called trade creation.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
38
In a customs union,each country can maintain whatever policy it sees fit against nonmember countries.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
39
Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?

A) increased national sovereignty
B) increased military security
C) trade diversion
D) higher-wage employment
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
40
Economic integration can unintentionally reward a less efficient producer within a trading bloc.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
41
Which of the following treaties was signed by the members of the European Coal and Steel Community in 1957 for creating the European Economic Community?

A) the Treaty of Rome
B) the Maastricht Treaty
C) the Treaty of Paris
D) the Treaty of Versailles
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
42
A benefit of regional economic integration is that it always expands employment opportunities in all nations.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
43
The least amount of sovereignty that must be surrendered to a trading block occurs in a free trade agreement.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
44
Differentiate among the five levels of economic and political integration.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
45
The primary purpose of the Gulf Cooperation Council (GCC)at its formation was to create a political union between Iraq and Iran.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
46
Which of the following countries has been facing difficulties in negotiations regarding its application for European Union membership?

A) Bulgaria
B) Czech Republic
C) Romania
D) Turkey
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
47
In regional economic integration,industries that require mostly unskilled labor tend to shift production to low-wage nations within a trading bloc.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
48
Discuss "political union" as a level of economic integration and "political cooperation" as a benefit of economic integration.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
49
In 1951,Belgium,France,West Germany,Italy,Luxembourg,and the Netherlands signed the Treaty of Paris and created the ________.

A) European Union
B) European Economic Community
C) European Coal and Steel Community
D) European Community
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
50
Explain the concepts of trade creation and trade diversion.Who are the winners and losers in each scenario?
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
51
The goal of the Single European Act was to remove remaining barriers,increase harmonization,and thereby enhance the competitiveness of European companies.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
52
Which of the following materialized the EU's goals of removing trade barriers,increasing harmonization,and enhancing the competitiveness of European companies?

A) the Maastricht Treaty
B) the European Monetary Union
C) the Single European Act
D) the Copenhagen Criteria
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
53
The European Union plan that established its own central bank and currency in January 1999 is known as the ________.

A) Single European Act
B) European Monetary Union
C) Copenhagen Criteria
D) Southern Common Market
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
54
When trade diversion occurs,buyers will likely pay more for products.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
55
Currently the most sophisticated and advanced example of regional integration is occurring in ________.

A) Asia
B) Europe
C) North America
D) Africa
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
56
Which of the following statements about the euro is true?

A) It was adopted by all existing EU members when it was first initiated.
B) It must be adopted by countries as a precondition to joining the EU.
C) It cannot be used by countries that are not members of the EU.
D) It was designed to eliminate currency as a barrier to trade in the EU.
Unlock Deck
Unlock for access to all 111 flashcards in this deck.
Unlock Deck
k this deck
57
The ________ called for banking in a single common currency,setting up of monetary and fiscal targets,and political union of the European Union members.

A) Maastricht Treaty
B) European Monetary Union
C) Single European Act
D) Copenhagen Criteria
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58
Discuss free trade areas as a level of regional economic integration.How can regional integration enable employment opportunities?
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59
Discuss the benefits and drawbacks of regional integration.
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60
The ________ is the common currency of the European Union.

A) franc
B) pound
C) euro
D) mark
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61
The European Free Trade Association was formed in 1960 to focus on trade in ________.

A) consumer goods
B) agricultural goods
C) industrial goods
D) services
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62
The main purpose of the ________ is to debate and amend legislation proposed by the European Commission of the EU.

A) European Parliament
B) Council of the European Union
C) Court of Auditors
D) Court of Justice
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63
Which of the following is currently a member of the European Free Trade Association?

A) Slovakia
B) Ireland
C) Norway
D) Italy
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64
Which of the following institutions is least likely to play an important role in monitoring and enforcing economic and political integration in the European Union?

A) European Parliament
B) Council of the European Union
C) European Court of Human Rights
D) European Commission
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65
The Court of Justice is the court of appeals of the European Union.
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66
No proposed legislation becomes EU law unless the ________ votes it into law.

A) Council of the European Union
B) European Parliament
C) Court of Auditors
D) European Commission
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67
The Court of Justice is the ________ of the European Union.

A) court of honor
B) court of appeals
C) small-claims court
D) arbitral tribunal
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68
Which of the following countries is a member of the North American Free Trade Agreement (NAFTA)?

A) Costa Rica
B) Honduras
C) Venezuela
D) Canada
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69
The European Union (EU)and European Free Trade Association (EFTA)created the European Economic Area (EEA).
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70
The Maastricht Treaty called for political union of the member nations.
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71
The European Commission is the ________ body of the European Union.

A) legislative
B) executive
C) financial
D) monitoring
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72
Describe the structure of the European Union.
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73
Like the European Union commissioners,EU justices are required to act in the interest of their native countries.
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74
Which of the following is best classified as an economic union?

A) Southern Common Market (MERCOSUR)
B) European Union (EU)
C) North American Free Trade Agreement (NAFTA)
D) Andean Community
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75
For countries to become members of the European Union,they have to meet certain demands laid down by the EU referred to as the ________.

A) Copenhagen Criteria
B) Closer Economic Relations Agreement
C) Andean Community
D) Euro-Plus Pact
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76
The Council of the European Union is the ________ body of the European Union.

A) legislative
B) executive
C) judicial
D) monitoring
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77
The Council of the European Union is the legislative body of the EU.
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78
Ombudsman and Data Protection Supervisor are the EU institutions that fulfill secondary and support roles.
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79
The European Free Trade Association focuses on trade only in consumer goods,and not in manufactured goods.
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80
While ________ encourages free trade among Canada,Mexico and the United States,manufacturers and distributors must abide by local content requirements and rules of origin.

A) NAFTA
B) LAFTA
C) CAN
D) CAFTA-DR
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