INB 300 Chapter 9

Which of the following is an economic benefit of global economic integration?

It allows for disputes to be handled constructively.

Which of the following is a disadvantage of regional economic integration?

It may result in some loss of sovereignty in an economic dimension.

Which of the following will result from global economic integration?

Its fundamental goal is to promote peace among countries.

The _____, signed in 2007 and enacted in 2009, amended the Maastricht Treaty that served as a constitutional basis for the European Union (EU).

Lisbon Treaty

The Forman Free Trade Agreement (FFTA) is an economic union established to promote regional economic integration among its five member countries. In this case, which of the following is likely to be true?

Members of the FFTA coordinate and harmonize monetary, fiscal, and taxation policies.

The most (in)famous loophole in merchandise trade created through the General Agreement on Tariffs and Trade (GATT) was the _____.

Multifiber Arrangement (MFA)

Which of the following was a result of the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER)?

Tariffs and nontariff barriers between the countries were removed..

Which of the following is a difference between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO)?

The GATT does not cover Intellectual Property (IP) protection, whereas the WTO includes IP protection.

Which of the following agreements was signed among Canada, Mexico, and the United States?

The North American Free Trade Agreement (NAFTA)

The region consisting of eighteen European countries using a common currency is called the _____.

euro zone

Andean Community is relatively more protectionist and suspicious of the United States, whereas Mercosur is more pro-free trade.

false

Given the slowdown of multilateralism and the acceleration of regionalism, managers should focus their attention more at global levels than regional levels.

false

Protectionist policies promote free trade and economic gains.

false

The European Union (EU) is now a political union.

false

Turkey is a part of the European Union (EU).

false

North American Free Trade Agreement (NAFTA) is a free trade agreement (FTA) among Canada, Mexico, and the United States.

true

The Doha Round refers to a round of the World Trade Organization (WTO) negotiations to reduce agricultural subsidies, slash tariffs, and strengthen intellectual property protection.

true

Global economic integration refers to efforts to reduce trade and investment barriers around the globe.

true

In 2008, Andean Community and Mercusur countries agreed to form the Union of South American Nations (USAN).

true

The benefits of Association of Southeast Asian Nations (ASEAN) free trade area (AFTA) are limited because:

ASEAN's main trading partners are outside the region.

Which of the following customs unions in South America is more pro-free trade?

Andean Community

The free trade area formed by Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua—plus the Dominican Republic is called the _____.

Central America Free Trade Agreement (CAFTA)

Which of the following is a disadvantage of global economic integration?

Critics may not be happy with the environmental impact.

Simon is a citizen of Belgium. He can travel to places such as France, Germany, and Greece without a passport. These states of the European Union are referred to as the _____.

Schengen

Which of the following is an economic benefit of global economic integration?

The World Trade Organization (WTO)

Which of the following was agreed upon and launched at the end of the Uruguay Round in 1994?

The World Trade Organization (WTO)

Which of the following was the General Agreement on Tariffs and Trade's (GATT's) successor?

The World Trade Organization (WTO)

_____ was established in 1995 as the global multilateral trading system and the organization that supports it.

The World Trade Organization (WTO)

In comparison with the General Agreement on Tariffs and Trade (GATT), which of the following statements is true of the World Trade Organization (WTO)?

The World Trade Organization (WTO) includes effective trade dispute settlement mechanism.

The South East Trading Zone (SETZ) is a monetary union comprising eleven member countries. In this case, which of the following statements is true?

The member countries will integrate political and economic affairs of a region.

Praziland is one of the five countries in a free trade area (FTA). In this case, which of the following is likely to be true of the FTA?

The members of the FTA will remove trade barriers among themselves.

Which of the following improvements resulted after the establishment of the General Agreement on Tariffs and Trade (GATT)?

Trade growth consistently outpaced the gross domestic product (GDP) growth.

Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies?

Trade in services and intellectual property (IP) protection was not covered.

_____ has been developing because Asia-Pacific Economic Cooperation (APEC) is too big and too difficult to get anything meaningful done.

Trans-Pacific Partnership (TPP)

Entrepreneurs are founders and owners of new businesses or managers of existing firms.

true

In the context of the World Trade Organization's (WTO's) trade dispute settlement mechanisms, the losing country:

can defy the WTO ruling by doing nothing and suffer trade retaliation by the winning country.

Which of the following countries is a member country of Asia-Pacific Economic Cooperation (APEC)?

chile

The North West Trading Zone (NWTZ) is a free trade area comprising eleven countries in the Moresian continent. The member countries of this free trade area use different currencies. In addition to imposing common external policies, the NWTZ permits the free movement of goods and people. In this case, the NWTZ is a _____.

common market

The North Symorian Trade Confederate (NSTC) was established to promote regional economic integration within six countries belonging to the same subcontinent. This free trade area has imposed common external policies on nonparticipants. In this case, NSTC is a _____.

customs union

Lumberne is a continent comprising 18 countries. Currently, Lumberne is a free trade area and an economic union including all 18 countries as members of free trade. Although each country is politically independent, governments of at least 12 countries are negotiating to form a common government. If Lumberne comes to be led by a single government, it would be a _____.

political union