MKTG456 Chapter 3
If after due process a country's trade policies are found to violate WTO rules, the country is expected to change those policies. If changes are not forthcoming, what action can the WTO take? A. Authorize trade sanctions against the losing country B. Devalue the country's currency C. Revisit the deliberations D. Require preferential trade agreements E. Fine the country a fixed financial penalty
A
In Latin America, the Common Market of the South (Mercosur) actually operates as a(n) ________. A. customs union B. community market C. common market D. economic union E. preferential trade participant
A
In the Middle East, what percent of the population is Muslim? A. 95% B. 10% C. 60% D. 80% E. 25%
A
NAFTA is a free trade area because _______. A. the governments of all three nations decided to eliminate tariffs and expand trade and investment B. restrictions are imposed on labor movements among members C. restrictions are imposed on the use of goods, services, and investments D. the issue of illegal immigration from Mexico to the United States is resolved E. the agreement does not leave the door open for discretionary protectionism
A
The African continent is an enormous landmass with a territory of 11.7 million square miles. It is not possible to treat Africa as a single economic unit with ___ countries on the continent. A. 54 B. 22 C. 32 D. 8 E. 69
A
The World Trade Organization (WTO) was formed January 1, 1995, and is the successor to which other organization? A. GATT B. FTAA C. DSB D. NAFTA E. ASEAN
A
The introduction of the euro by the EU resulted in multifaceted advantages that included ________. A. elimination of costs associated with currency conversion B. withdrawal of French Francs from circulation C. a choice for using local or European currency D. elimination of paper currency and coins E. fixed exchange rate worldwide
A
What is the key difference between NAFTA and an economic union? A. The economic union provides free flow of labor between countries. B. NAFTA has eliminated internal tariff barriers. C. NAFTA allows for discretionary protectionism. D. An economic union provides protection of intellectual property rights. E. NAFTA has established external tariffs.
A
Which of the following Mercosur members has a gross domestic product (GDP) greater than the combined GDP of the other eight members? A. Brazil B. Argentina C. Venezuela D. Peru E. Chile
A
Which of the following is NOT one of the trade agreements in the Asia-Pacific region? A. CACM B. APEC C. ASEAN D. ASEAN + 3 E. ASEAN + 6
A
Which of the following is the division of the World Trade Organization responsible for mediating complaints concerning unfair trade barriers? A. Dispute Settlement Body (DSB) B. Preferential Trade Agreements C. Barrier Mediation Group D. World Commerce Court E. The General Agreement on Tariffs and Trade (GATT)
A
Which of the following is the regional organization of oil-producing nations in the Middle East? A. The Gulf Cooperation Council (GCC) B. The Arab Maghreb Union (AMU) C. The Middle East Trade Union (METU) D. The Arab League (AL) E. The Arab Cooperation Council (ACC)
A
Which of the following members of the South African Development Community (SADC) represents about seventy-five percent of the income in the region? A. South Africa B. Botswana C. Mozambique D. Angola E. Namibia
A
Which of the following was the most significant challenge to a fully integrated ASEAN economic community? A. Lack of consensus among all ASEAN member nations B. Geographically separated members C. Resentment of China's "flood" of low-cost imports into member nations D. Historical conflicts between member nations E. Varying political systems of the member nations
A
Which of the following BEST describes an economic union? A. An agreement that allows for free movement of production factors including labor and capital. B. An agreement that seeks to coordinate economic and social policies to facilitate the free flow of capital, labor, and goods and services from country to country. C. An agreement to establish common external tariffs. D. An agreement to eliminate tariffs between two countries. E. An agreement that sets embargos against other countries.
B
Policy in Bhutan is guided by _________. A. currency exchange B. GNH C. GNP D. GNI E. GDP
B
The Treaty of Lagos established ECOWAS and was signed in 1975. What does ECOWAS stand for? A. Economic Citizens of West African States B. Economic Community of West African States C. Educating Citizens of West African States D. Economic Countries of West African Status E. Environmental Citizens of West African States
B
The ________ is the trade agreement among the United States, Canada, and Mexico. A. U.S.-Canada Free Trade Agreement (CFTA) B. North American Free Trade Agreement (NAFTA) C. Common Market of North America (CMNA) D. North American Regional Customs Union (NARCU) E. North American Union (NAU)
B
The number-one destination for exports from the United States is ________. A. Japan B. Canada C. Germany D. Mexico E. China
B
Which of the following best describes the purpose of the African Growth and Opportunities Act (AGOA) signed into law in 2000? A. To create further support for the oil-producing nations of Africa. B. To encourage African nations to make progress toward economic liberalization. C. To remove all trade tariffs from African countries to the United States. D. To create free trade among all African nations. E. To provide more foreign aid from the United States to developing African nations.
B
Which of the following helps describe the European Union (EU)? A. The EU restricts individuals in one country from gaining work permits in another. B. The economic and monetary union of 28 European nations. C. The EU is also called the Eurasian Economic Union. D. The EU has little impact on a company's global marketing strategy. E. The EU is a trade union and does not support a single currency.
B
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) ______________. A. common market B. economic union C. customs union D. European Union E. free trade area
C
The ultimate goal of a free trade area (FTA) is to __________. A. reduce the amount of documentation needed to be completed at the borders B. allow people to move from one country to another freely C. have zero duties on goods that cross borders between the partners D. enable goods to be easily transported between countries E. divide the level of current duties charged
C
The ultimate goal of ________ is to have zero duties on goods that cross the borders between free trade partners. A. the World Trade Organization B. a customs union C. a free trade agreement D. the European Commission E. a preferential trade agreement
C
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? A. Free trade area B. Customs union C. Economic union D. Dispute settlement body E. Common market
C
Which of the following describes the euro zone? A. The northern European countries B. Great Britain C. Countries that adopted the single European currency D. The geographic area where the Euros are accepted E. The Central European countries
C
Which two issues that came to the foreground during Donald Trump's presidential campaign threaten repeal of NAFTA? A. Trade and currency exchange B. Canadian trade and currency exchange C. Illegal immigration and trade D. Illegal immigration and the building of a wall E. Poison pills and FTAs
C
A key to conducting business in the Middle East is ________. A. participation in the Arab Spring B. standardization C. focusing on the company, not the individual D. developing relationships E. segmentation by religious affiliation
D
A key word(s) in conducting business in the Middle East is _______. A. male dominance B. red tape C. discrimination D. connections. E. haggling
D
A regional group called APEC is a forum that brings 19 leaders together each fall to discuss issues of mutual interest. What does APEC stand for? A. Asia-Pacific European Cooperation B. American-Pacific Economy Cooperation C. American-Pacific European Cooperation D. Asia-Pacific Economic Cooperation E. Asia-Pacific Economy Contract
D
How many EU countries are also current members of the Euro zone (i.e., using the common currency called the euro)? A. 28 B. 15 C. 7 D. 19 E. 12
D
The key regional organization, commonly referred to as the Gulf Cooperation Council (GCC), was established in 1981 by A. Belgium, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates B. Bahrain, Kuwait, Oman, Qatar, South Africa, and the United Arab Emirates C. Brazil, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates D. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates E. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United States
D
The year 2017 marked 70 years since the enactment of GATT. What did GATT promote? A. Ending poverty B. Ending global tariffs C. Enforcement of trade agreements D. Trade among members E. Regional currencies
D
Which of the following is a forum that brings together political leaders with mutual interest in the Asian market? A. The Association of Southeast Asian Nations (ASEAN) B. The Trans-Pacific Partnership (TPP) C. Pacific Rim Trade Ministry D. The Asia-Pacific Economic Cooperation (APEC) E. The Commission on the Measurement of Economic Performance
D
In 2000, U.S. President George W. Bush signed the African Growth and Opportunities Act under the theme of "Trade, not Aid." The law is primarily designed to support African nations that make significant progress toward ______________. A. human rights B. better education C. increased exports D. decreased imports E. economic liberalization
E
The formation of an economic union builds upon all of the following key criteria EXCEPT ________________________. A. the establishment of common external barriers B. facilitating the free flow of capital, labor, and goods and services from country to country C. removing internal tariff barriers D. coordinating and harmonizing economic and social policies within the union E. each country maintaining their own currency
E
The newest member country to join the EU at the beginning of 2013 was _______. A. Poland B. Cyprus C. Latvia D. Slovenia E. Croatia
E
What shipping route in the Central American region has positively impacted the region? A. Gulf of Mexico B. Suez Canal C. Amazon River D. Nile River E. Panama Canal
E
Which country did NOT become a signature to the 1991 treaty known as Mercosur or Common Market of the South? A. Paraguay B. Argentina C. Brazil D. Uruguay E. Venezuela
E
Which of the following countries is outside of the Andean Community? A. Ecuador B. Bolivia C. Peru D. Colombia E. Brazil
E
Which of the following organizations was the predecessor to the WTO? A. The Cooperation Council B. Dispute Settlement Body (DSB) C. The European Union (EU) D. The United Nations (UN) E. The General Agreement on Tariffs and Trade (GATT)
E