Chapter 3 INT MAR Exam

The Secretariat for Central American Integration is headquartered in:

Guatemala City.

The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except:

India.

Other than tariffs, there are certain problems that restrict free trade between the European Union and the United States which includes all of the following except:

Internet usage.

The Gulf Cooperation Council (GCC) includes all of the following countries except:

Iraq.

Which of the following statement is not true related to the African Growth and Opportunities Act (AGOA)?

It is designed to help African nations that help neighboring countries in need.

The new country which joined the EU at the beginning of 2015 is:

Lithuania.

The Middle East and North Africa are sometimes viewed as a regional entity referred to as:

MENA.

The five original members of the Central American Integration System did not include:

Venezuela

Political and social instability in the Middle Eastern region can primarily be attributed to:

a wide gap between rich and poor nations due to oil revenues

Trade ministers representing the WTO member nations meet ________ to work on improving world trade

annually

The allure of the Latin American market has been its:

considerable size.

Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving into the region for all of the following reasons except:

core products and Western brand names need changes are appropriate for business.

Arrange the following in order from lowest to highest level of economic integration

free trade area→customs union→common market→economic union

According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because:

terms such as "Parmesan" is used on the package labels..

Which member of the Central American Integration System has both the largest economy and the largest population?

Guatemala

Argentina was allowed to break from the CET and raise duties on consumer goods. This crisis had a silver lining, which is evident from all of the following points except:

Argentina became known for the world's most expensive wines.

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

Argentina devalued its currency for exports and capital transactions.

There are several preferred trading arrangements in Latin America which include all of the following except:

BRIC

Blackberry (formerly known as Research in Motion), the smartphone marketer, is based in:

Canada.

A Canadian-built Caterpillar grader tractor imported into Chile would not be subject to duty because:

Chile and Canada established an FTA.

The country that withdrew from the original members of the Andean Community is:

Chile.

________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.

Customs union

The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n):

Customs union.

A key word(s) in conducting business in the Middle East is:

connection.

In order to form a free trade area, South Africa has signed a Trade, Development, and Cooperation Agreement (TDCA) with:

EU.

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services, and welfare?

Economic union

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n):

Free trade area.

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation:

GATT.

For the past 40 years Bhutan, a kingdom of 754,000 people in the Himalaya mountains, has relied on the following measure:

GNH

The "Common Market of the South" in Latin America is used to describe:

Mercosur.

________ is gaining a reputation as a manufacturing center as well as the world's number one producer of flat-screen TV sets.

Mexico

The world's newest common market includes all of the following countries except:

Nigeria

Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except:

Panama.

Which of the following ASEAN countries alone accounts for more than one-third of 2014 two-way trade exports with the United States?

Singapore

Which one of the ASEAN members has the World's second-largest container port?

Singapore

Bhutan has relied on a measure besides economic growth, namely, gross national happiness (GNH). The GNH Index includes all of the following indicators except:

economic vitality.

The introduction of the euro by EU resulted in multifaceted advantages which include:

elimination of costs associated with currency conversion.

In 2014, the EU filed a complaint that the government of Washington state violated international trade rules by:

extending tax incentives to Boeing for in-state manufacture of the 777x jetliner

There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following except:

goods marketed should have a semblance of western products and services.

Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges which include:

new sources of growth. first mover advantage. exporting as an entry mode. lower wage rate. E) all of the above

Custom unions or a common market does not create a free trade area as compared to NAFTA due to:

no common external tariffs.

The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:

shifting products from one market to another in the event of shortages.

Management strategic options pertaining to products that are facilitated by a single European market include:

standardized packaging and labeling. consolidated production. shift from brand to benefit segmentation. seeking marketing economies. E) all of the above

European countries will definitely benefit by having an FTA with the United States. However there are some sticky points which need resolution. All of the following points need consideration except:

the US government would like easing of restrictions for purchasing European goods.

The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with:

the United States.

The Maastricht Treaty called for:

the creation of an economic and monetary union in Europe

One of the most exciting projects in the Central American region in 2014 was:

the enlargement of the Panama Canal.

NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that:

the governments of all three nations decided to eliminate tariffs.

In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because:

they must import most of the goods and services

The markets of Central and Eastern Europe present interesting opportunities and offer attractive opportunities for low-cost manufacturing due to:

wage rates being lower than in Spain, Portugal and Greece.