MGT302 CH 9 - ASU
Two qualifications put on new members to join the EU were ________.
- Deregulating markets - Privatizing state assets
What are two impediments to establishing economic integration?
- Potential job loss - Concerns over national sovereignty
Which three nations are a part of ASEAN?
- Singapore _ Phillipines - Indonesia
The European Union is a product of what two political factors?
- The effects of the two world wars on Western Europe - Europe's desire to be seen as a major player in the world of politics and economics
What are two factors that support the idea for political integration of nations through trade?
-Countries can enhance their political weight in the world -Making nations interdependent can decrease the potential for violent conflict
What are three advantages of regional market integration that can result in cost savings to a business?
-Harmonized product standards -Simplified tax regimes -Free movement of goods across borders
What are two responsibilities of The European Central Bank?
-Set interest rates -Set monetary policy
While the British elected to leave the EU in 2016, it didn't actually formally exit until ____________.
2020
The Maastricht Treaty was established in order to bring _________ to the European Union.
A common currency
Free Trade Area
A group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.
In 2004, the US and six Central American countries formed a free trade agreement called __________.
Central America Free Trade Agreement (CAFTA)
EU legislation is proposed by the European ________ which is also responsible for making sure member states follow EU laws.
Commission
Court of Justice
Comprised of one judge from each member state, this is the supreme appeals court for EU law
The most significant trading block in Europe in terms of numbers and economic influence is the _________.
EU
European Parliament
Elected EU body that provides consultation on issues proposed by the European Commission, debates legislation proposed by the commission and forwarded to it by the council
Customs Union
Eliminates trade barriers between member countries and adopts a common external trade policy
Restrictions have been placed on new members to the EU to combat the potential problems associated with _________.
Enlargement
The movement toward regional economic integration has been most ambitious in ________.
Europe
What is the name of the financial institution established in the EU to ensure price stability and is intended to be independent from political pressure?
European Central Bank
Following the devastation of two world wars in Europe, the _____ was established as a means to reach lasting peace.
European Union
What is considered the most successful attempt at regional economic integration?
European Union
True or false: Atag, a Dutch maker of kitchen appliances, was successful in marketing to the "euro-consumer" and realized it could make fewer products because demand was consistent across Europe. Cultural differences did not affect Atag's approach.
False
True or False: The European Union is considered an optimal currency area.
False - An optimal currency area, that has similarities in the structure of economic activity, makes it feasible to go adopt a single currency and use a single exchange rate as a took of macroeconomic policy.
True or False: Under the terms of the EU-UK Trade and Cooperation Agreement, there is a "full tariff, zero quota" regime in place.
False - Under the agreement, there is a zero-tariff, zero quote regime in place.
The Association of Southeast Asian Nations was formed with the intent to foster __________.
Free trade
In which level of economic integration are all barriers to trade among member countries removed?
Free trade area
Common Market
Has no barriers to trade between member countries, a common external trade policy, and the free movement of the factors of production
Initially, Mercosur provided a(n) _________ in trade between Brazil and Argentina.
Increase
Economic Union
Involves the free flow of products and factors of production between members, the adoption of a common external trade policy, and in addition, a common currency, harmonization of the member countries' tax rates, and a common monetary and fiscal policy
Trade creation takes place when ______-cost producers replace other types of producers already within the free trade area. Multiple choice question.
Low
NAFTA is a regional economic alliance made up of the United States, Canada and ________.
Mexico
According to the Single European Act, a product standard developed in one EC country should be accepted in another. This is known as the principle of _______ recognition.
Mutual
Originally, the Trans-Pacific Partnership was a trade agreement between the United States and countries in the Pacific Rim, including _________.
New Zealand
What was an attempt at regional economic integration for the United States?
North American Free Trade Agreement (NAFTA)
A(n) _______ currency area, makes it possible to adopt a single currency and use a single exchange rate as a tool of macroeconomic policy.
Optimal
African countries have attempted to form a continental trade agreement, but have been stymied by significant _______ turmoil.
Political
African countries have attempted to form a continental trade agreement, but have been stymied by significant ___________ turmoil.
Political
Economic theories point toward the idea that all participating countries will gain from regional integration. In other words, it is a ______-sum game.
Positive
Under the new USMCA, in order to qualify for zero tariffs, automakers are required to ________.
Produce 75% of a vehicle's content in North America
The Central America Free Trade Agreement was designed to ________ between the member nations.
Reduce trade barriers
European Commission
Responsible for proposing EU legislation, implementing it, and monitoring compliance
Economic theories suggest that free trade allows countries to ________.
Specialize in goods and services that they are most efficient at producing
A key impediment to economic integration is that although a majority of citizens may benefit from free trade, certain groups may lose their jobs to low-cost and low-skilled labor in other countries as was the experience of some US and Canadian workers in the ___________ industry following the establishment of NAFTA.
Textile
The Andean Community, while not as successful at meeting the goals it set, was based on the model established by ______.
The European Union
Council of the European Union
The body within the EU that represents the governments of the member states and, along with the European Parliament, acts on legislation.
What happened to the Trans-Pacific Partnership after the United States withdrew from the agreement?
The remaining members continued to work together to create a new agreement.
What is the term for when high-cost domestic producers have been replaced by low-cost producers within a free trade zone?
Trade creation
__________ occurs when high-cost domestic producers are replaced by low-cost producers within a trade bloc, while ________ occurs when low-cost external suppliers are replaced by higher-cost suppliers within a trade bloc.
Trade creation, trade diversion
True or false: All WTO members were participating in regional trade agreements by 2021.
True
Once the British government gave formal notification of its exit from the EU, it was given ________ to negotiate the terms of the exit.
Two years
The eurozone is made up of the European Union members who _____.
Use the euro as currency
The ASEAN Free Trade Area has cut tariffs on what two products to less than 5 percent?
- Agricultural - Manufacturing
What are two proposals associated with the Single European Act?
- Apply principals of mutual recognition - Lift barriers to competition in retail banking
In 1969, which countries created the Andean Pact that was modeled on the EU, but was not as successful in achieving regional groups objectives?
- Bolivia - Chile - Columbia - Ecuador - Peru
