Chapter 7 Warm Up

Due to the larger market size of an economic​ bloc, member country firms are able to reduce their product prices because they can​ ________.

attain economies of scale

maquiladoras

export-assembly plants

A specific region that is located within a nation is treated as if it were outside the​ nation's borders. This region is designated to receive imported products intended for assembly and subsequent​ re-export. Which term best describes this​ region?

foreign trade zone

Which of the following is a stage of regional assimilation in which member countries decide to remove tariffs and other barriers to trade in goods and services within the​ bloc?

free trade area

Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling trade​ disagreements?

General Agreement on Tariffs and trade

With 28​ countries, which of the following is the​ world's most advanced and largest regional economic​ bloc?

European Union

Which of the following was formed by three countries to increase market​ entrance, remove barriers to​ trade, establish investment​ standards, and encourage bidding on government contracts within the three countries participating in​ it?

North America Free Trade Agreement (NAFTA)

in​ a(n) ________, barriers to trade within a participating country are reduced or​ eliminated, shared external barriers are​ established, and unrestricted movement of​ goods, services, and factors of production is permitted

common market

Regional integration enables member countries to gain bargaining power in world affairs by​ ________.

establishing a stronger political position as a united bloc

Government intervention and trade barriers imposed by developed countries raise​ ______ for developing economies that supply them.

ethical concerns

Currency Control

involves limitations on the expenditure of tangible monetary exchanges from a certain nation or on the influx​ of foreign currencies.

Dumping

refers to exported goods being priced lower than their average value whether in​ home-country markets or foreign​ markets?

Customs

represent locations at the ports of entry in each country where government authorities inspect imported products and levy tariffs.

Tariffs

taxes placed of imported goods that increase the final purchase for the consumer