SB Ch9-10

The Council of Ministers

Parliamentary

The Economic and Monetary Union was established under a provision of the -Treaty of Vienna. -Warsaw Pact. -First Geneva Convention. -Maastricht Treaty.

Maastricht Treaty.

Because Mercosur has helped improve the economies of its member states, other Latin American countries are forming similar economic cooperation groups. -True -False

True

The European Union allows differential pricing and needs to standardize prices to prevent parallel imports. -True -False

True

To facilitate transport of goods, the member countries of economic unions should be in close geographical proximity. -True -False

True

Which of the following reflects economic progress in Latin American countries? -imposition of restrictive investment policies -encouraging private ownership of businesses -establishment of protectionism -exclusion of foreign private ownership

encouraging private ownership of businesses

The members of the European Commission are responsible for _____. -passing judgment on the interpretation or validity of points of European Union law -establishing restrictive border customs procedures among member states -creating nontariff trade barriers to protect the individual markets of member states -ensuring that member states comply with the principles of the common market

ensuring that member states comply with the principles of the common market

An agreement between two or more countries to reduce customs duties and nontariff trade barriers among member countries while they impose individual tariffs on goods from external countries is known as a _____. -free trade area -common market -customs union -political union

free trade area

The parliamentary branch of the European Union is _____. -the European Commission -the Federal Assembly -the European Parliament -the Court of Justice

the European Parliament

Which of the following aimed at creating a free trade area extending from Alaska to Argentina? -the Caribbean Community and Common Market -the North American Free Trade Agreement -the Economic Cooperation Organization -the Regional Cooperation for Development

the North American Free Trade Agreement

Mercosur, the second-largest common-market agreement in the Americas, is based on -the Treaty of Nice. -the Treaty of Jeddah. -the Treaty of Versailles. -the Treaty of Asunción.

the Treaty of Asunción.

Which sector tends to work in the countryside? -the urban sector -the modern sector -the high-income sector -the agricultural sector

the agricultural sector

Which substage of the marketing process is primarily oriented toward subsistence? -the self-sufficient stage -the mass production stage -the commercial-transition stage -the mass distribution stage

the self-sufficient stage

The formation of multinational market regions has been encouraged by _____. -the establishment of planned economies -restrictive customs border procedures among nations -the transition to a free market system -the removal of all common markets

the transition to a free market system

One of the most common mistakes among economic planners is -placing too much emphasis on distribution of goods while neglecting production. -paying little attention to problems that reduce industrial production. -thinking distribution of goods is not as important as the production of them. -ignoring the need for investment and finance.

thinking distribution of goods is not as important as the production of them.

To achieve economic growth, developing nations are -adopting restrictive trade policies. -transferring state-owned enterprises into private ownership. -draining state treasuries. -prohibiting foreign investment within the country.

transferring state-owned enterprises into private ownership.

Which sector of the economy is characterized by jet airports, international hotels, and new factories? -urban -transitional -nomadic -agricultural

urban

The second-largest common-market agreement in the Americas is -the North American Free Trade Agreement. -Mercosur. -the Dominican Republic-Central American Free Trade Agreement. -the Caribbean Community and Common Market.

Mercosur.

Which country had plenty of oil and population but needed investment, technology, and exports and, therefore, ratified the North American Free Trade Agreement (NAFTA)? -Brazil -Mexico -Chile -India

Mexico

Which country on the African continent is not a part of the African Union? -Ethiopia -Morocco -Zambia -Kenya

Morocco

Identify an accurate statement about Eastern European economies. -They are all market-driven economies. -They are all insulated from the effects of inflation. -Most of them are privatizing state-owned enterprises. -Most of them are imposing strict and restrictive import controls.

Most of them are privatizing state-owned enterprises.

The Court of Justice

Judiciary

Which of the following did the Economic and Monetary Union achieve in 2002? Multiple select question. -A central bank was established. -Nontariff trade barriers between member countries were increased. -Conversion rates were determined. -Euro banknotes and coins were completely circulated. -The legal status of member nations' currencies was canceled.

-A central bank was established. -Conversion rates were determined. -Euro banknotes and coins were completely circulated. -The legal status of member nations' currencies was canceled.

Which of the following do developing countries strive to achieve as they grow their economies? Multiple select question. -Industrialization -A heightened sense of moral responsibility among the citizens -A reduction of per capita income -Social equality

-Industrialization -A heightened sense of moral responsibility among the citizens -Social equality

Identify the countries that are bound by the Dominican Republic-Central American Free Trade Agreement.. Multiple select question. -Nicaragua -United States -Dominican Republic -Guatemala -Costa Rica -El Salvador -Honduras -Argentina

-Nicaragua -United States -Dominican Republic -Guatemala -Costa Rica -El Salvador -Honduras

Which factors have led to the rise of multinational market groups? Multiple select question. -The elimination of global competition -The restructuring of eastern Europe into independent market-driven economies -The globalization of markets -The unification of independent states into the Soviet Union

-The restructuring of eastern Europe into independent market-driven economies -The globalization of markets

Identify the factors that require market potential to be evaluated regionally rather than by individual country. Multiple select question. -The worldwide trend toward economic cooperation -The dissolution of the Soviet Union into independent states -Enhanced global competition -The restructuring of eastern Europe into socialist economies

-The worldwide trend toward economic cooperation -The dissolution of the Soviet Union into independent states -Enhanced global competition

According to the classification system of the United Nations, which of the following are true of less-developed countries? Multiple select question. -They are just beginning to trade globally. -They have high per capita income levels. -They are major exporters of automobiles, electronics, and other manufactured items. -They are developing their industries.

-They are just beginning to trade globally. -They are developing their industries.

Identify the provisions of the agreement between the member states of the Commonwealth of Independent States. Multiple select question. -To establish a free trade association similar to the European Union -To incorporate economic reforms -To allow other currencies besides the ruble -To establish socialist economies in all member states -To fulfill all Soviet foreign treaties and debt obligations -To create joint control of nuclear weapons -To repeal all Soviet laws

-To establish a free trade association similar to the European Union -To incorporate economic reforms -To allow other currencies besides the ruble -To fulfill all Soviet foreign treaties and debt obligations -To create joint control of nuclear weapons -To repeal all Soviet laws

Identify the factors that created economic chaos in Latin American countries and eventually led to the formation of economic cooperation groups. Multiple select question. -Vital industries were owned by governments instead of private companies. -Investment policies were too liberal and needed tighter regulating. -Policies were designed to protect the economies of individual countries. -Money was owed to other countries. -Businesses had to comply with too many regulations.

-Vital industries were owned by governments instead of private companies. -Policies were designed to protect the economies of individual countries. -Money was owed to other countries. -Businesses had to comply with too many regulations.

Capital goods that support the needs of various industries are also known as Multiple select question. -infrastructure. -industrialization. -social overhead capital. -exportable materials.

-infrastructure. -social overhead capital.

Which factors contribute to the economic growth of newly industrialized countries? Multiple select question. -orientation toward exports -political stability -encouragement of self-employment -low rates of domestic savings

-orientation toward exports -political stability -encouragement of self-employment

Data regarding market metrics tend to be least available for ______. -Africa and the Middle East -Latin America -the European Union -the United States

Africa and the Middle East

Which countries joined the European Union in 2007? -Greece and Italy -Mexico and Canada -Bulgaria and Romania -Argentina and Chile

Bulgaria and Romania

How do economic unions develop and enlarge markets for member countries? -By providing assured outlets for goods manufactured by member countries -By increasing import duties on goods manufactured in member countries -By imposing restrictive border customs procedures among member countries -By imposing common tariff barriers against member countries

By providing assured outlets for goods manufactured by member countries

The North American Free Trade Agreement exists among -the United States, the United Kingdom, and the Netherlands. -Brazil, Russia, and the United States. -Canada, Mexico, and the United States. -France, the United States, and Argentina.

Canada, Mexico, and the United States.

Which trade group exists in Europe and is composed of republics of the former Union of Soviet Socialist Republics? -Commonwealth of Independent States -Southern Common Market -Economic and Monetary Union -European Union

Commonwealth of Independent States

How has the adoption of the euro as a common currency affected the European Union? -Consumers can search for best bargains in branded products. -Price differentials have become impossible to spot. -External countries have stopped trading with the European Union. -A socialist economy has been established in the European Union.

Consumers can search for best bargains in branded products.

The European Commission

Executive

Marketers should use the same marketing strategies in all underdeveloped economies. -True -False

False

The Council of Ministers of the European Union requires a simple majority vote to amend tax rates on products and services. -True -False

False

The formation of an economic union is independent of the political orientation of member countries. -True -False

False

The success of multinational companies is independent of time zones. -True -False

False

The North American Free Trade Agreement aimed to ultimately establish the -Economic Cooperation Organization. -United States-Canada Free Trade Area. -Free Trade Area of the Americas. -Regional Cooperation for Development.

Free Trade Area of the Americas.

Identify a factor that facilitates the success of an economic union. -A lack of political alignment among member nations -Restrictive border customs procedures among member nations -Geographic and temporal proximity of member nations -Common tariff barriers against member nations

Geographic and temporal proximity of member nations

Egypt and Morocco have ratified an agreement to form the _____. -Greater Arab Free Trade Area -Economic and Monetary Union -Greater Arab Council -Economic Commission

Greater Arab Free Trade Area

Identify an accurate statement about big emerging markets. -They lack the potential for economic growth. -Half of the people in the world live in one. -They are all geographically small. -They represent extremely small markets.

Half of the people in the world live in one.

Identify a problem faced by the European Union because of its expansion. -It has lost the authority to make any of its decisions binding on member states. -All member states have imposed nontariff trade barriers against one another. -Illegal immigrants are entering through the borders of new states. -External countries do not trade or invest with member states any longer.

Illegal immigrants are entering through the borders of new states.

Identify a factor that has increased trade among nations. -In developing regions of the world, countries have loosened their trade and investment policies. -Countries generate a larger gross national product when they abandon capitalism and adopt socialism. -Countries around the world have maintained the economic status quo. -Governments have been assuming control of privately owned businesses, which tends to improve productivity.

In developing regions of the world, countries have loosened their trade and investment policies.

How does marketing affect a nation's economy? -It has no effect on economic growth. -It tends to create an imbalance between production and consumption. -It ignores the distribution and channel system. -It helps ensure that as the country produces more goods, consumers will want to buy them.

It helps ensure that as the country produces more goods, consumers will want to buy them.

Identify an accurate statement about the Commonwealth of Independent States. -It has a central government. -It has adopted the euro as its common currency. -It is a loose political union with open borders. -It seeks to establish Soviet laws across member states.

It is a loose political union with open borders.

Which of the following occurs when the incomes of people increase? -Demand for more costly goods declines drastically. -Large households have lower disposable incomes. -Young working people have no discretionary income. -People at all income levels buy more products of all kinds.

People at all income levels buy more products of all kinds.

How does the distance from the equator affect the economic development of regions? -Only those regions that lie on the equator are economically developed. -Only those regions that lie on the equator are not economically developed. -Regions farther from the equator tend to have lower economic development. -Regions farther from the equator tend to have greater economic development.

Regions farther from the equator tend to have greater economic development.

Which institution of the European Union is responsible for deciding which proposals of the Single European Act will apply to member states? -The European Commission -The Federal Assembly -The European Court of Justice -The Council of Ministers

The Council of Ministers

Which institution of the European Union initiates policies and oversees their adoption by member states? -The European Parliament -The European Court of Justice -The Federal Assembly -The European Commission

The European Commission

Which economic union was formed in 1958 and led to the emergence of multinational markets? -The Central American Common Market -The Economic Cooperation Organization -The European Economic Community -The Regional Cooperation for Development

The European Economic Community

Which multinational market group is the most cooperatively secure and economically important? -The European Union -The Central American Common Market -The Union State of Russia and Belarus -The Southern Cone Free Trade Area

The European Union

Identify an accurate statement about a country in which the income of its citizens is rising. -There is no new demand at any income level. -The middle class begins to buy more expensive items. -Young working people have no discretionary income. -Large households have lower disposable incomes.

The middle class begins to buy more expensive items.

Identify an accurate statement about economic development in Africa. -The entire continent of Africa has adopted a single currency. -Africa has achieved the highest economic integration in the world. -The political instability in Africa has resulted in little economic progress. -There are no regional cooperative groups in Africa.

The political instability in Africa has resulted in little economic progress.

Economic unions create multinational markets, which in turn create marketing efficiencies for participants. How do these marketing efficiencies affect businesses? -The purchasing power of their customers increases. -They always experience diseconomies of scale. -They never engage in trade with nonmember countries. -The costs of goods manufactured by them always increase.

The purchasing power of their customers increases.

When trading with the Middle East and Africa, what advantage does Europe have over Asia and the Americas? -They all lie in the southern hemisphere of the world. -They are all fully industrialized trading areas. -They are part of the same market region, and they share time zones. -Europe shares a common cultural outlook with them.

They are part of the same market region, and they share time zones.

Identify a feature of big emerging markets. -They offer marketing opportunities for no more than a few types of products. -They include numerous countries, but only a few of those countries are generating most of the economic growth. -Most of them have already grown about as much as they can, and now their economies are in danger of stagnation. -They consist of a few small countries scattered here and there around the world, connected only by the Internet.

They include numerous countries, but only a few of those countries are generating most of the economic growth.

In large markets created by economic integration, businesses that rely on mass production and mass distribution are more likely to -face a substantial increase in costs when they produce more goods. -raise the prices of their products. -achieve marketing efficiencies. -face restrictive policies on foreign trade and investment.

achieve marketing efficiencies.

The ultimate aim of the European Union is to -impose common tariff barriers against member countries. -achieve the political union of member countries. -hike tariffs on goods produced in member countries. -eliminate the national sovereignty of all member countries.

achieve the political union of member countries.

Agreements between member countries of an economic union are more likely to succeed if the members -are culturally similar. -exist in different time zones. -lack political alignment. -engage in pseudoparticipation.

are culturally similar.

In an underdeveloped country, marketers must -superimpose a homogenized marketing solution. -disregard how well that country previously responded to their products. -assume that the business will be agile enough to handle whatever the marketing plan might be. -consider how much the market in that country has already been developed.

consider how much the market in that country has already been developed.

The objective of the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) is to -create jobs and encourage commerce. -impose higher tariffs on goods imported by one signatory from another. -create separate commercial markets for all goods and services. -increase trade barriers among the signatories.

create jobs and encourage commerce.

The Internet affects the economies of countries by -decreasing the transaction costs of small firms. -creating a barrier between rich economies and wealthy consumers. -slowing the spread of new technologies. -enabling large companies to dominate small businesses worldwide.

decreasing the transaction costs of small firms.

The economic progress in Latin American countries is marked by -tariffs that prevent most imports from other countries. -governments transferring their enterprises to privately owned companies. -the imposition of restrictive investment policies. -a trend to replace democratic rule with military dictatorships.

governments transferring their enterprises to privately owned companies.

Member countries of an economic union must -be geographically dispersed. -have similar political aspirations. -engage in subornation. -prohibit all foreign investment.

have similar political aspirations.

The Internet affects small firms by -reducing their ability to market to wealthy consumers. -helping them market their products globally. -on average, tripling their transaction costs. -interfering with the adoption of new technologies.

helping them market their products globally.

Highways, telephone systems, financial institutions, and electric power lines are part of a country's -market. -distribution. -culture. -infrastructure.

infrastructure.

The Arab Common Market aims to _____. -impose nontariff trade barriers on all Arab countries -establish restrictive border customs procedures among Arab countries -create socialist economies in all Arab countries -integrate the economies of the Arab countries

integrate the economies of the Arab countries

An industrially developing country called Moonopia has recently begun trading at an international level. How would the United Nations classify Moonopia's stage of economic development? -least-developed country -more-developed country -most-developed country -less-developed country

less-developed country

A true statement about Eastern European economies is that _____. -they are all socialist economies -most of them are adopting restrictive foreign trade policies -most of them are relaxing import controls -they are all insulated from the effects of inflation

most of them are relaxing import controls

International trade has grown in recent years because -countries have adopted more restrictive trade and investment policies. -privately owned enterprises are being converted to government jobs. -societies tend to resist globalization. -people around the world are improving their standard of living.

people around the world are improving their standard of living.

Economic unions enlarge markets by _____. -providing preferential tariff treatment to member countries -increasing import duties on goods manufactured in member countries -imposing restrictive border customs procedures among member countries -imposing common tariff barriers against member countries

providing preferential tariff treatment to member countries

A free trade area _____. -requires less economic integration than a regional cooperation group -cannot exist between more than two countries -reduces nontariff trade barriers among member countries -imposes a common external tariff on products imported from nonmember countries

reduces nontariff trade barriers among member countries

The simplest grouping for economic integration and cooperation is the _____. -political union -regional cooperation for development group -integrated customs union and agreement -common market

regional cooperation for development group

The rapid economic growth of newly industrialized countries typically stems from -an unstable political environment. -lax enforcement of contracts and property rights. -selling goods almost exclusively within the country instead of pursuing foreign markets. -self-employed people engaging in free enterprise.

self-employed people engaging in free enterprise.

Economic unions tend to be successful if member countries -engage in pseudoparticipation. -share a cultural heritage. -prohibit all foreign trade and investment. -import goods only from nonmember nations.

share a cultural heritage.

In the evolution of the marketing process, which marketing institutions are most likely to exist during the agricultural and raw materials stage? -wholesalers and specialized institutions -small-scale merchants, traders, and fairs -integrated channels of distribution -large-scale and chain retailers

small-scale merchants, traders, and fairs

In a regional cooperation for development arrangement, countries -cannot purchase a specified share of the output of their joint venture. -form a unified economy and lack only political unity to become a political union. -work together to develop basic industries that benefit each of them. -cannot commit in advance to finance a new joint venture.

work together to develop basic industries that benefit each of them.