MKT 495 TEST 1 CH3 Review

Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges, which include:

All of these

Management strategic options pertaining to products that are facilitated by a single European market include:

All of these

Other than tariffs, there are certain problems that restrict free trade between the European Union and the United States which includes all of the following except:

Internet usage

The new country, which joined the EU at the beginning of 2015, is:

Lithuania

The Middle East and North Africa are sometimes viewed as a regional entity referred to as:

MENA

Although the ASEAN member countries are geographically close, they have historically been divided in many respects.

True

Coca-Cola had to delay launching its Powerade sports drink in Europe due to the lack of uniform food safety laws in the European Union.

True

Competing ideologies in South America help explain why intraregional trade is not yielding more benefits.

True

In a common market there are no internal barriers to trade, and it allows free movement of factors of production such as labor and capital.

True

In addition to eliminating internal barriers to trade, members of a customs union agree to the establishment of common external tariffs.

True

In an economic union, a doctor or lawyer qualified in one country can practice in another member country.

True

One of the reasons why Bhutan is called the "forbidden kingdom" is that the country's leaders limit tourism.

True

Some companies choose not to manufacture in Mexico since a lack of checkpoints means that cargo sits on trucks at bottleneck points such as Tijuana, a key hub for manufacturing.

True

The GATT had no enforcement power since the losing party in a dispute was entitled to ignore the ruling.

True

The six countries in the Gulf Cooperation Council (GCC) hold about 45 percent of the world's known oil reserves, but their production amounts to only 18 percent of world oil output.

True

When the ASEAN countries expanded to include Australia, New Zealand, and India, it was dubbed as "ASEAN + 6."

True

Political and social instability in the Middle Eastern region can primarily be attributed to:

a wide gap between rich and poor nations due to oil revenues.

Select the best answer that represents the lowest to the highest level of economic integration.

free trade area → customs union → common market → economic union

According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because:

terms such as "Parmesan" are used on the package labels.

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

Argentina devalued its currency for exports and capital transactions.

There are several preferred trade arrangements in Latin America which include all of the following except:

BRIC.

________ is a key word(s) in conducting business in the Middle East.

Connection

________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.

Customs union

A free trade area represents the most fully developed form of preferential trade agreement among nations.

False

Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA.

False

The Asia-Pacific Economic Cooperation (APEC) launched an economic bloc called the ASEAN Economic Community (AEC).

False

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization known as:

GATT

For more than 40 years, Bhutan, a kingdom of 754,000 people in the Himalaya mountains, has relied on the following measure:

GNH

The business environment in Europe has undergone considerable transformation since 1992 with significant implications for all elements of the marketing mix except:

Process

Which of the following ASEAN countries alone accounts for more than one-third of 2014 two-way trade exports with the United States?

Singapore

Which one of the ASEAN members has the World's second-largest container port?

Singapore

The form of economic cooperation that calls for establishing common external tariffs is known as a(n):

customs union.

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services, and welfare?

economic union

Bhutan has relied on a measure besides economic growth, namely, gross national happiness (GNH). The GNH Index includes all of the following indicators except:

economic vitality.

The introduction of the euro by the EU resulted in multifaceted advantages, which include:

elimination of costs associated with currency conversion.

There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following except:

goods marketed should have a semblance of western products and services.

The enlargement of the EU has affected marketing strategies in the Euro zone countries by:

shifting products from one market to another in the event of shortages.

European countries would benefit by having an FTA with the United States. However, there are some sticky points, which need resolution. All of the following points need consideration except:

the U.S. government would like easing of restrictions for purchasing European goods.