BUSMHR 2000 Chapter 9 Regional Economic Integration

Before the United Kingdom decided to exit the EU, how many total countries were involved by 2014?

28

Mercosur is a free trade pact started in 1988 by which two South American economies? (Check all that apply.)

Argentina Brazil

Under the Andean Pact,, which two members received special concessions based on the size of these countries?

Bolivia Ecuador

In 1969, which countries created the Andean Pact that was modeled on the EU, but was not as successful in achieving regional groups objectives?

Bolivia, Chile, Colombia, Ecuador, Peru

The European Parliament must approve all members of the European ______ before this body can begin its work.

Commission

What are two impediments to establishing economic integration? (Check all that apply.)

Costs of integration Concerns over national sovereignty

What two political factors led to the development of the European Union? (Check all that apply.)

Europe's desire to hold its own on the world's political and economic stage The devastation of western Europe during the two world wars

Which institution has a monopoly in proposing European Union legislation?

European Commission

The most significant trading block in Europe based on economic and political influence is the _____.

European Union

What are the two major trading blocks in Europe? (Check all that apply.)

European Union European Free Trade Association

One of the reasons the European Union was originally formed was because

Europeans desired a lasting peace after enduring two devastating world wars.

What are two factors that support the idea for political integration of nations through trade? (Check all that apply.)

Making nations interdependent can decrease the potential for violent conflict. Countries can enhance their political weight in the world.

The trade pact developed in 1988, initially between Argentina and Brazil, is called ______.

Mercosur

Which agreement was an attempt at regional economic integration in the United States?

North American Free Trade Agreement

What are three advantages of regional market integration that can result in cost savings to a business? (Check all that apply.)

Simplified tax regimes Free movement of goods across borders Harmonized product standards

Which three nations are a part of ASEAN? Check all that apply.

Singapore Indonesia Philippines

______ is considered the most successful attempt at regional economic integration.

The EU

True or false: One political reason that supports economic integration is the potential to reduce violent conflict between nations.

True

What three countries established the North American Free Trade agreement? (Check all that apply.)

US Canada Mexico

The Maastricht Treaty committed EU members to

adopt a common currency by January 1, 1999.

One of the changes proposed by the Single European Act was to abolish the restrictions placed on foreign truckers who pick up and deliver goods within another member's state borders. This hauling process is known as ______.

cabotage

An argument against regional free trade agreements contends that the benefits have been oversold, but ______ have often been ignored.

costs

There are presently 19 trade blocs in Africa, and many of these blocs have been _____ for years.

dormant

Regional _____ integration creates agreements among countries in a specific geographic area in order to reduce and eventually remove tariff and nontariff barriers to the free flow of goods.

economic

What are two methods a country would use to achieve economic integration? (Check all that apply.)

economic union common market

What are two requirements countries must take to qualify for EU membership?

establish stable democratic government respect human rights

The Association of Southeast Asian Nations was formed with the intent to foster _____.

free trade

The least integrated form of economic integration is a

free trade area.

During the campaign for leaving the EU, one of the recent claims said that leaving the EU would allow the British to take back control of _____.

immigration

There has been a(n) _____ in regional economic integration in the past two decades.

increase

The creation of a single market creates _____ costs of doing business.

lower

According to the Single European Act, a product standard developed in one EC country should be accepted in another. This is known as the principle of ______.

mutual recognition

African countries have attempted to form a continental trade agreement, but have been stymied by significant ______ turmoil.

political

Based on economic theories, free trade is viewed as a ______ as all participating nations stand to gain.

positive-sum game

Economic theories suggest that free trade allows countries to

specialize in producing goods and service that they are most efficient at producing.

A key impediment to economic integration is that although a majority of citizens may benefit from free trade, certain groups may lose their jobs to low-cost and low-skilled labor in other countries as was the experience of some US and Canadian workers in the ______ industry following the establishment of NAFTA.

textile

Some economists argue that regional free trade agreements will provide global benefits only if

trade creation exceeds trade diversion.

After the British government formally notified of its intent to exit the European Union, the country had _____ to negotiate the terms of the exit.

two years