International Business Chapter 9

Which of the following is a reason why Turkey is not yet a member of the EU?

There are concerns over human rights issues in the country.

Which feature of a customs union differentiates it from a free trade area?

A common external trade policy toward nonmembers

A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Common Market

A _____ eliminates trade barriers between member countries and adopts a common external trade policy, but does not allow free movement of factors of production between member nations.

Customs union

A(n) _____ involves the free flow of products and factors of production between member countries, the adoption of a common external trade policy, a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy.

Economic union

________ is similar to the Federal Trade Commission and the Department of Justice, antitrust authorities in the US

European Commissions

In a free trade area, countries are not allowed to determine their own trade policies with nonmembers.

False

The emergence of single markets will make the business environment within each grouping less competitive

False

Identify the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements.

Free trade areas

_____ is an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under global agreements.

Regional economic integration