Question 1

Discuss the four main institutions within the European Union.

Accepted Answer

The four main institutions in this struc...

Question 2

Describe two impediments to regional economic integration.

Accepted Answer

Despite the strong economic and politica...

Question 3

How did the Treaty of Rome affect trade?

Accepted Answer

A)   It obliged all European Union members to adopt the euro.
B)   It committed the European Economic Community to establish common policies in agriculture and transportation.
C)   It called for the establishment of internal trade barriers.
D)   It allowed members to determine the level of protection applied to goods coming from outside.
E)   It called for the abolition of a common external tariff.F) B) and D)
G) C) and D)

Question 4

Canada and the United States agree to remove all barriers to the trade of goods between them. However, the countries agree that each would be allowed to determine its own trade policies with regard to nonmembers. The economic integration between these countries is called a(n)

Accepted Answer

A)   free trade area.
B)   customs union.
C)   common market.
D)   economic union.
E)   political union.F) B) and D)
G) B) and E)

Question 5

Which political factor resulted in the establishment of the European Union (EU) ?

Accepted Answer

A)   spectacular success of the North American Free Trade Agreement (NAFT
A)  
B)   trade impasse following the oil crisis in the 1970s that occurred due to collusion among oil producing nations
C)   devastation of Western Europe during two world wars and the desire for a lasting peace
D)   emergence of Japan as an economic and industrial superpower despite the nuclear holocaust
E)   rise of communism in EuropeF) B) and C)
G) None of the above

Question 6

While the countries of Canada and Mexico are committed to removing all barriers to the free flow of goods and services between each other, they are independent in their trade policy dealings with other countries. This represents a(n)

Accepted Answer

A)   free trade area.
B)   customs union.
C)   common market.
D)   economic union.
E)   political union.F) A) and B)
G) A) and C)

Question 7

The European Parliament, which meets in Strasbourg, France, is primarily a legislative rather than consultative body.

Accepted Answer

A) True 
 B)False

Question 8

The failure of the Doha Round of talks helped foster renewed emphasis on bilateral trade agreements.

Accepted Answer

A) True 
 B)False

Question 9

The Court of Justice acts as

Accepted Answer

A)   the co-legislator for almost all European laws.
B)   a consultative body rather than a legislative body.
C)   the supreme appeals court for European Union law.
D)   the ultimate controlling authority within the EU for legislation.
E)   a monitor for EU compliance laws.F) A) and B)
G) C) and D)

Question 10

The goal of the Caribbean Single Market and Economy is to

Accepted Answer

A)   remove all trade barriers between member nations in practice.
B)   establish a political union.
C)   adopt a common currency.
D)   harmonize macroeconomic and monetary policy between member states.
E)   establish an economic union.F) C) and D)
G) B) and E)

Question 11

Under a common market agreement, you would find

Accepted Answer

A)   absence of a common external trade policy with regard to nonmembers.
B)   free movement of factors of production between member nations.
C)   establishment of barriers to the free flow of goods between member nations.
D)   a lack of administrative machinery to oversee trade relations with nonmembers.
E)   mandatory use of a common currency among member nations.F) C) and E)
G) B) and E)

Question 12

The countries of the Andean Pact have faced

Accepted Answer

A)   fast-paced democratic reforms.
B)   low unemployment.
C)   political stability.
D)   low economic growth.
E)   diminished debt burdens.F) None of the above
G) A) and D)

Question 13

What were the objectives of the Single European Act?

Accepted Answer

The purpose of the Single European Act w...

Question 14

Define trade creation and trade diversion with respect to regional economic integration.

Accepted Answer

Trade creation occurs when high-cost dom...

Question 15

One advantage to adopting the euro is that is represents an optimal currency area.

Accepted Answer

A) True 
 B)False

Question 16

What is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements?

Accepted Answer

A)   licensing agreements
B)   economic unions
C)   common markets
D)   free trade agreements
E)   political unionsF) A) and B)
G) All of the above

Question 17

How is a common market different from an economic union?

Accepted Answer

A common market has no barriers to trade...

Question 18

Describe the Central American Common Market and the Central America Free Trade Agreement.

Accepted Answer

In the early 1960s, Costa Rica, El Salva...

Question 19

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

Accepted Answer

A) True 
 B)False

Question 20

The purpose of the Central America Free Trade Agreement is to

Accepted Answer

A)   lower trade barriers between the United States and the Central American Common Market countries.
B)   eliminate trade barriers between the CARICOM and Central American Common Market countries.
C)   reduce of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries.
D)   introduce a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
E)   reduce tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua.F) D) and E)
G) A) and B)

Exam 9: Regional Economic Integration

Canada and the United States agree to remove all barriers to the trade of goods between them. However, the countries agree that each would be allowed to determine its own trade policies with regard to nonmembers. The economic integration between these countries is called a(n)

Correct AnswerverifiedShow Answer

The countries of the Andean Pact have faced

Correct AnswerverifiedShow Answer

Describe two impediments to regional economic integration.

Correct AnswerverifiedDespite the strong economic and politica...View AnswerShow Answer

Define trade creation and trade diversion with respect to regional economic integration.

Correct AnswerverifiedTrade creation occurs when high-cost dom...View AnswerShow Answer

The Court of Justice acts as

Correct AnswerverifiedShow Answer

Which political factor resulted in the establishment of the European Union (EU) ?

Correct AnswerverifiedShow Answer

One advantage to adopting the euro is that is represents an optimal currency area.

Correct AnswerverifiedShow Answer

Discuss the four main institutions within the European Union.

Correct AnswerverifiedThe four main institutions in this struc...View AnswerShow Answer

Under a common market agreement, you would find

Correct AnswerverifiedShow Answer

What is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements?

Correct AnswerverifiedShow Answer

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

Correct AnswerverifiedShow Answer

The purpose of the Central America Free Trade Agreement is to

Correct AnswerverifiedShow Answer

How did the Treaty of Rome affect trade?

Correct AnswerverifiedShow Answer

Describe the Central American Common Market and the Central America Free Trade Agreement.

Correct AnswerverifiedIn the early 1960s, Costa Rica, El Salva...View AnswerShow Answer

While the countries of Canada and Mexico are committed to removing all barriers to the free flow of goods and services between each other, they are independent in their trade policy dealings with other countries. This represents a(n)

Correct AnswerverifiedShow Answer

The goal of the Caribbean Single Market and Economy is to

Correct AnswerverifiedShow Answer

What were the objectives of the Single European Act?

Correct AnswerverifiedThe purpose of the Single European Act w...View AnswerShow Answer

The failure of the Doha Round of talks helped foster renewed emphasis on bilateral trade agreements.

Correct AnswerverifiedShow Answer

How is a common market different from an economic union?

Correct AnswerverifiedA common market has no barriers to trade...View AnswerShow Answer

The European Parliament, which meets in Strasbourg, France, is primarily a legislative rather than consultative body.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Despite the strong economic and politica...
View Answer

Correct Answer
verified
Trade creation occurs when high-cost dom...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The four main institutions in this struc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the early 1960s, Costa Rica, El Salva...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The purpose of the Single European Act w...
View Answer

Correct Answer
verified

Correct Answer
verified
A common market has no barriers to trade...
View Answer

Correct Answer
verified