Ch 8 (International Business)

Lowest

Is a free trade area the lowest/greatest extent of national integration?

Greatest

Is the Political union the lowest/greatest extent of national integration?

True

True/False Products will qualify for tariff-free status if they meet regional content requirements or if sufficient value was added to them within the NAFTA region.

1. Stable institutions of human rights, democracy, and law 2. Functioning and capable market economy 3. Assume economic, monetary, and political obligations 4. Adopt rules of the Community, Court of Justice, and Treaties

What are the four requirements for countries to become members of the European Union?

The main difference Is that the members of a customs unit agree to treat trade with all nonmember nations in a similar manner.

What is the main difference between a free trade area and a custom union?

The main goal is higher living standards through increased cross-border trade and investment

What is the main goal of regional economic integration?

Copenhagen Criteria

What type of criteria does future countries have to satisfy to become part of the European Union?

1994

When did the North American Free Trade Agreement take effect?

1951

When was the European Union formed?

North American Free Trade Agreement

Which Trade agreement seeks to eliminate trade barriers on most goods originating from North America?

Political Union

Which level of Regional Integration does this describe? Coordinate aspects of members' economic and political systems

Customs Union

Which level of Regional Integration does this describe? Remove barriers to trade among members, and set a common trade policy against nonmembers

Free Trade Area

Which level of Regional Integration does this describe? Remove barriers to trade among members, but each country has own policies for nonmembers

Common Market

Which level of Regional Integration does this describe? Remove barriers to trade, labor, and capital among members, and set a common trade policy against nonmembers

Economic Union

Which level of Regional Integration does this describe? Remove barriers to trade, labor, and capital, set a common trade policy against nonmembers, and coordinate members' economic policies

South America Free Trade Agreement (SAFTA)

Which new proposed trade area could possibly be the largest free trade area on the planet if it materialized?