Deck 8: Capitalizing on Global and Regional Integration

Question 1

Every time a WTO country lowers a trade barrier,it has to do the same for all other member countries.

Answer 1

True

Question 2

The refusal of Japan,the EU,and the US to reduce farm subsidies was one of the reasons for the collapse of the Doha Round.

Answer 2

True

Question 3

While emphasizing economic benefits,the most fundamental goal of global economic integration is to promote peace.

Answer 3

True

Question 4

Britain,Denmark,and Sweden are the only three countries which did not join the EU.

Question 5

GATT 1994 refers to the agreement governing the international trade of goods in the WTO.

Question 6

Regional economic integration refers to efforts to reduce trade and investment barriers within one economic region.

Question 7

TRIPS is a WTO agreement governing the international trade of services.

Question 8

The GATT differed from the WTO in that the GATT was not considered an organization.

Question 9

The Doha Round primarily aimed at strengthening economic development in developed economies.

Question 10

The crucial principle of GATT/WTO is nondiscrimination,ensuring that countries do not discriminate among its trading partners.

Question 11

The Multifibre Arrangement (MFA)was in violation of the GATT.

Question 12

All WTO members are obliged to follow WTO rulings on settlement disputes as law.

Question 13

All members of the EU have adopted the euro as their currency.

Question 14

The GATT system is an example of a strictly bilateral trading system.

Question 15

Local content requirements is an example of a nontariff barrier.

Question 16

European Economic Community is the official title of European economic integration since 1993.

Question 17

One of the main objectives for establishing the WTO was to strengthen the trade dispute settlement mechanism.

Question 18

The WTO sets time limits for a panel,consisting of three neutral countries,to reach a judgment for trade dispute settlements.

Question 19

The GATT was a multilateral agreement governing the international trade of goods (merchandise)before World War II.

Question 20

General Agreement on Tariffs and Trade (GATT)expanded considerably to become the EU.

Question 21

The Andean Community is more pro-free trade than Mercosur.

Question 22

The Mercosur countries collectively represent the second largest US export in Latin America.

Question 23

Which of the following agreements was in direct violation of the principles of GATT?

A) Trade policy review
B) Multifibre Arrangement
C) General Agreement on Trade in Services
D) Trade-Related Aspects of Intellectual Property Rights

Question 24

The Trans-Pacific Partnership (TPP)is a multilateral free trade agreement that aims to further liberalize the economies of the entire Western Hemisphere.

Question 25

The UNASUR is a free trade agreement between the United States and five Central American countries and the Dominican Republic.

Question 26

From an institution-based view,China's economic development since it joined WTO shows the amount of benefits associated with WTO membership.

Question 27

A customs union imposes common external policies on nonparticipants in order to combat trade diversion.

Question 28

Which of the following is an example of regional economic integration?

A) The European Union
B) The British Commonwealth
C) The Cingular and AT&T merger
D) The Commonwealth of Independent States

Question 29

The _____ was a multilateral agreement,created in 1948,governing the international trade of goods (merchandise).

A) WTO
B) GATT
C) UN
D) EU

Question 30

The General Agreement on Tariffs and Trade (GATT)expanded considerably into a multilateral trading system called _____.

A) EU
B) NAFTA
C) UN
D) WTO

Question 31

Which of the following is referred to as a multilateral trading system?

A) WTO
B) EU
C) NAFTA
D) ASEAN

Question 32

Regional integration deals in Africa show the least amount of protectionism in international trade.

Question 33

Due to the slowdown of multilateralism and the acceleration of regionalism,managers are advised to focus their attention more at global than regional levels.

Question 34

NAFTA is a free trade agreement between Latin American countries.

Question 35

All the countries of Europe are part of the European Union (EU).

Question 36

ACFTA is currently the largest Free Trade Area in terms of population.

Question 37

NAFTA is an example of an economic union.

Question 38

The Andean Community's largest trading partner is the United States.

Question 39

Passport-free travel zones can only be setup in political unions.

Question 40

The former Soviet Union is an example of a political union.

Question 41

A(n)_____ refers to a group of countries that use a common currency.

A) political union
B) customs union
C) monetary union
D) trade union

Question 42

GATS is a WTO agreement governing _____.

A) trade dispute settlement mechanisms
B) the international trade of services
C) intellectual property rights
D) trade policy reviews

Question 43

Which of the following features refers to the Schengen area in the EU?

A) A passport-free travel zone
B) An open migration zone for workers
C) A common currency zone
D) A Non-EU members' zone

Question 44

In which of the following types of economic integration systems will the establishment of a common currency be possible?

A) Customs union
B) Economic union
C) Free trade area
D) Common market

Question 45

Which of the following changes was introduced to the EU through the Lisbon Treaty?

A) Establishment a passport-free travel zone within the EU
B) Appointment of a long-term President of the European Council
C) Transformation of the EU into an FTA
D) Creation of a common currency for EU members

Question 46

The European Union (EU)was established when the ____ went into effect in 1993.

A) Treaty of Rome
B) Maastricht Treaty
C) Lisbon Treaty
D) ECSC Treaty

Question 47

Which of the following is a WTO agreement regulating intellectual property?

A) GATT
B) GATS
C) MFA
D) TRIPS

Question 48

Which of the following was part of the agenda of the Doha Round?

A) Reducing agricultural subsidies in developing countries
B) Increasing tariffs in the industries that developed countries might benefit from
C) Freeing up trade in services
D) Loosening intellectual property protection

Question 49

In a(n)____,members coordinate and harmonize monetary,fiscal,and taxation policies.

A) customs union
B) common market
C) economic union
D) free trade area

Question 50

Which of the following is an example of a political union?

A) The EU
B) The United States
C) The British Commonwealth
D) The Andean Community

Question 51

Which of the following is an example of a customs union?

A) The former Soviet Union
B) The EU (European Union)
C) The Andean Community (South America)
D) The NAFTA (North American Free Trade Agreement)

Question 52

The EU is an example of a(n)____.

A) free trade area
B) customs union
C) common market
D) economic union

Question 53

NAFTA is an example of a(n)_____.

A) free trade area
B) customs union
C) common market
D) economic union

Question 54

Which of the following is an effect of adopting the euro as a currency for EU members?

A) It implements independent monetary policies for each nation.
B) It provides unlimited flexibility in fiscal policy making.
C) It increases currency conversion costs.
D) It facilitates direct and transparent price comparison.

Question 55

The WTO differs from "GATT 1948" in that the WTO _____.

A) has trade in services as its primary trade focus
B) has provisions that allows members to review other members' trade policies
C) has no rules governing intellectual property rights
D) has no mechanism to settle member disputes

Question 56

The _____ was the only round of trade negotiations sponsored by the WTO to reduce agricultural subsidies,slash tariffs,and strengthen intellectual property protection.

A) Copenhagen Consensus
B) WTO Ministerial Conference of 1999
C) Uruguay Round
D) Doha Round

Question 57

A free trade area _____.

A) imposes common external policies on nonparticipants in order to combat trade diversion
B) permits the free movement of goods and people among member nations
C) comprises a group of countries that remove trade barriers among themselves
D) coordinates and harmonizes economic policies in order to blend their economies into a single economic entity

Question 58

Which of the following regions describes the euro zone?

A) A region that comprises EU members without a common currency
B) A region that comprises all EU members
C) A region that has passport-free traveling
D) A region that has a common currency

Question 59

Which of the following characterizes a customs union?

A) It requires each member to maintain different external policies regarding non-members.
B) It imposes common external policies on non-members.
C) It integrates the political and economic affairs of a region.
D) It permits the free movement of goods and people among its members.

Question 60

The Euro is currently used in _____.

A) all EU member countries
B) all European countries
C) 17 EU countries
D) Schengen countries only

Question 61

Which of the following is true of the customs unions in South America?

A) The Andean Community's largest trading partner is China.
B) Mercosur is more pro-free trade than the Andean Community.
C) Andean Community and Mercosur countries are today integrated into the FTAA.
D) Mercosur is relatively more protectionist than the Andean Community.

Question 62

Discuss how the institution-based perspective accounts for the success of MNEs by focusing on regional opportunities.

Question 63

Discuss the benefits and challenges faced by the EU member countries sharing a common currency,the euro.

Question 64

Which of the following is the economic trade agreement between Australia and New Zealand?

A) CER
B) ASEAN
C) APEC
D) CAFTA

Question 65

Inspired by the EU's success,ASEAN set up an FTA called _____ in 1992.

A) NAFTA
B) ACFTA
C) AFTA
D) CAFTA

Question 66

_____ refers to the official title for regional economic integration involving 21 member economies around the Pacific.

A) UNASUR
B) APEC
C) NAFTA
D) CAFTA

Question 67

Discuss the formation of GATT and the issues that precipitated the formation of the WTO (Post GATT).

Question 68

Explain possible benefits of global economic integration.

Question 69

Describe the European Union as an economic union.

Question 70

Explain the formation of APEC.

Question 71

The _____ is a free trade agreement among Canada,the United States,and Mexico.

A) Andean Community
B) ASEAN
C) NAFTA
D) Commonwealth of Independent States

Question 72

Which of the following countries is an original signatory of the Trans-Pacific Partnership (TPP)?

A) The United States of America
B) Australia
C) Chile
D) Japan

Question 73

Which of the following is true of the Union of South American Nations (USAN)?

A) It is made of nations that are not present in either the Andean Community or Mercosur.
B) It is a proposed integration of Mercosur and the Andean Community.
C) It is a proposed free trade area integrating the Andean Community and ASEAN.
D) Its integration mechanism is modeled after the NAFTA.

Question 74

Describe the pros and cons of regional economic integration.

Question 75

CAFTA refers to _____.

A) a regional integration mechanism integrating two existing customs unions (Andean Community and Mercosur) in South America
B) a free trade agreement between the United States and five Central American countries and the Dominican Republic
C) a proposed free trade area for the entire Western Hemisphere
D) a proposed customs union between nations that are present near the Pacific Ocean

Question 76

Which of the following South American countries pulled out of the Andean Community and joined Mercosur in 2006?

A) Uruguay
B) Peru
C) Colombia
D) Venezuela

Question 77

Discuss whether global and regional economic integration create more benefits or more challenges.

Question 78

_____ is the organization underpinning regional economic integration in Southeast Asia.

A) ASEAN
B) APEC
C) ANZCERTA
D) UNASUR