Chapter 7 Warm Up
Due to the larger market size of an economic bloc, member country firms are able to reduce their product prices because they can ________.
attain economies of scale
maquiladoras
export-assembly plants
A specific region that is located within a nation is treated as if it were outside the nation's borders. This region is designated to receive imported products intended for assembly and subsequent re-export. Which term best describes this region?
foreign trade zone
Which of the following is a stage of regional assimilation in which member countries decide to remove tariffs and other barriers to trade in goods and services within the bloc?
free trade area
Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling trade disagreements?
General Agreement on Tariffs and trade
With 28 countries, which of the following is the world's most advanced and largest regional economic bloc?
European Union
Which of the following was formed by three countries to increase market entrance, remove barriers to trade, establish investment standards, and encourage bidding on government contracts within the three countries participating in it?
North America Free Trade Agreement (NAFTA)
in a(n) ________, barriers to trade within a participating country are reduced or eliminated, shared external barriers are established, and unrestricted movement of goods, services, and factors of production is permitted
common market
Regional integration enables member countries to gain bargaining power in world affairs by ________.
establishing a stronger political position as a united bloc
Government intervention and trade barriers imposed by developed countries raise ______ for developing economies that supply them.
ethical concerns
Currency Control
involves limitations on the expenditure of tangible monetary exchanges from a certain nation or on the influx of foreign currencies.
Dumping
refers to exported goods being priced lower than their average value whether in home-country markets or foreign markets?
Customs
represent locations at the ports of entry in each country where government authorities inspect imported products and levy tariffs.
Tariffs
taxes placed of imported goods that increase the final purchase for the consumer
