Int. Bus. ch.9

What are two impediments to establishing economic integration?

-concerns over national sovereignty -potential job losses

What are two proposals associated with the Single European Act?

-lift barriers to competition in retail banking -apply principles of mutual recognition

The ASEAN Free Trade Area has cut tariffs on what two products to less than 5 percent?

-manufacturing -agricultural

The most significant trading block in Europe in terms of numbers and economic influence is the ______.

EU

True or False: The European Union is considered an optimal currency area.

False

Initially, Mercosur provided a(n) ______ in trade between Brazil and Argentina.

Increase

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 ______ recognition.

mutual

An ______ currency area, makes it possible to adopt a single currency and use a single exchange rate as a tool of macroeconomic policy.

optimal

The eurozone is made up of the European Union members who ______.

use the euro as currency

NAFTA abolished tariffs on 99% of the goods traded between ______. (check the three that apply)

-Canada -US -Mexico

What are two factors that support the idea for political integration of nations through trade?

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

What are the two major trading blocks in Europe?

-EU -EFTA

What are two benefits of a common currency in the European Union?

-Savings from handling just one currency -Easier to compare prices across Europe

Two qualifications put on new members to join the EU were ______.

-privatizing state assets -deregulating markets

What are two aspects of NAFTA?

-protection of intellectual property rights -removal of most restrictions on foreign direct investment

What are two responsibilities of The European Central Bank?

-set monetary policy -set interest rates

While the British elected to leave the EU in 2016, it didn't actually formally exit until ______.

2020

Mercosur is a free trade pact started in 1988 by which two South American countries?

Argentina and Brazil

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

What is the name of the financial institution established in the EU to ensure price stability and is intended to be independent from political pressure?

European Central Bank

During 2007 and 2008, many investors were taking money out of the US by selling dollar-denominated assets, like US stocks, and purchasing euro-denominated assets. As a result, the value of the euro ______.

Increased

One of the first steps to economic and political integration is a(n) ______ union, where trade barriers among member nations are removed and a common trade policy is adopted.

customs

Restrictions have been placed on new members to the EU to combat the potential problems associated with ______.

enlargement

In which level of economic integration are all barriers to trade among member countries removed?

free trade area

Lauren's company is eager to trade with Canada because there are no quotas or subsidies on the product they want to sell there. This describes a ______.

free trade area

Politicians on both sides of the table in the United States claim that NAFTA is responsible for significant ______ in the US and as a result, it has now been renegotiated to the USMCA.

job losses

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

political

Economic theories point toward the idea that all participating countries will gain from regional integration. In other words, it is a ______-sum game.

positive

Under the new USMCA, in order to qualify for zero tariffs, automakers are required to ______.

produce 75% of a vehicle's content in North America

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

Once the British government gave formal notification of its exit from the EU, it was given ______ to negotiate the terms of the exit.

two years

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

Indonesia, Singapore, Philippines

A customs union is put in place to ______.

regulate foreign trade policy among members

Economic theories suggest that free trade allows countries to ______.

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

The European Union is a product of what two political factors?

-The effects of two world wars on western Europe -Europe's desire to be seen as a major player in world politics and economics

One argument explaining the difficulty of establishing trade areas in Africa is that these countries have ______ and therefore need to be "protected" by tariff barriers from unfair foreign competition.

less-developed economies

The Central America Free Trade Agreement was designed to ______ between the member nations.

reduce trade barriers

EU legislation is proposed by the European ______ which is also responsible for making sure member states follow EU laws.

Commission

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

Commission

The weakening of which currency helped raise the value of the euro from $1.17 in 1999 to $1.54 in 2008?

Dollar

The emphasis of the ______ has been on free trade in industrial goods, and it was founded by those western European countries that initially decided not to be part of the European Community.

EFTA

Following the devastation of two world wars in Europe, the ______ was established as a means to reach lasting peace.

EU

The movement toward regional economic integration has been most ambitious in ______.

Europe

Which trade union is made up of European countries that initially decided NOT to be part of the European Community and emphasized free trade in industrial goods?

European Free Trade Association

What is considered the most successful attempt at regional economic integration?

European Union

NAFTA is a regional economic alliance made up of the United States, Canada and

Mexico

In 2004, the US and six Central American countries formed a free trade agreement called ______.

NAFTA

Originally, the Trans-Pacific Partnership was a trade agreement between the United States and countries in the Pacific Rim, including ______.

New Zealand

What was an attempt at regional economic integration for the United States?

North American Free Trade Agreement

The Andean Community, while not as successful at meeting the goals it set, was based on the model established by ______.

The European Union

What happened to the Trans-Pacific Partnership after the United States withdrew from the agreement?

The remaining members continued to work together to create a new agreement.

True or false: All WTO members were participating in regional trade agreements by 2021.

True

True or false: As a consequence of competitive pressure in the European automobile industry, the introduction of the euro has led to lower prices for consumers.

True

The Maastricht Treaty was established in order to bring ______ to the European Union.

a common currency

The political reasons for regional economic integration have been an important factor in several attempts to establish ______ trade areas and customs unions.

free