Global business Chap 9 sb

Trade creation takes place when ______-cost producers replace other types of producers already within the free trade area.

low

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

While the British elected to leave the EU in 2016, it didn't actually formally exit until ______.

2020

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, Colombia, Ecuador, Peru

Mercosur is a free trade pact started in 1988 by which two South American countries? Multiple select question. Brazil Colombia Argentina Peru

Brazil Argentina

In 2004, the US and six Central American countries formed a free trade agreement called ______.

CAFTA

EU legislation is proposed by the European ______ which is also responsible for making sure member states follow EU laws.

Commission

The European Parliament must approve all members of the European ______ before this body can begin its work.

Commission

The most significant trading block in Europe in terms of numbers and economic influence is the ______.

EU

The movement toward regional economic integration has been most ambitious in ______.

Europe

What are the two major trading blocks in Europe? Multiple select question. Integrated European Commons European Parliament European Free Trade Association European Union

European Free Trade Association European Union

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

What are two factors that support the idea for political integration of nations through trade? Multiple select question. Making nations interdependent can decrease the potential for violent conflict Countries will have enhanced independent political power Countries can enhance their political weight in the world Countries will have an incentive to use military action to achieve their objectives

Making nations interdependent can decrease the potential for violent conflict Countries can enhance their political weight in the world

NAFTA is a regional economic alliance made up of the United States, Canada and ____________

Mexico

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

What are three advantages of regional market integration that can result in cost savings to a business? Multiple select question. Higher tariff and nontariff barriers Simplified tax regimes Free movement of goods across borders Harmonized product standards Implementation of varied currencies

Simplified tax regimes Free movement of goods across borders Harmonized product standards

Which three nations are a part of ASEAN? Check all that apply. Multiple select question. Argentina Singapore Mexico Brazil Philippines Indonesia

Singapore Philippines Indonesia

The Andean Community, while not as successful at meeting the goals it set, was based on the model established by ______.

The Andean Community, while not as successful at meeting the goals it set, was based on the model established by Blank______.

The European Union is a product of what two political factors? Multiple select question. The effects of two world wars on western Europe Europe's desire to assist its former colonies Europe's need for a common language and culture Europe's desire to be seen as a major player in world politics and economics

The effects of two world wars on western Europe Europe's desire to be seen as a major player in world politics and economics

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

True or false: All WTO members were participating in regional trade agreements by 2021.

True

Who are the three members of the North American Free Trade agreement? Multiple select question. Greenland United States Canada Costa Rico Mexico

United States Canada Mexico

The Maastricht Treaty was established in order to bring Blank______ to the European Union.

a common currency

What are two proposals associated with the Single European Act? Multiple select question. create frontier controls among EC countries apply principles of mutual recognition lift barriers to competition in retail banking implement restrictions on cabotage

apply principles of mutual recognition lift barriers to competition in retail banking

One of the changes proposed by the Single European Act was to abolish the restrictions placed on foreign truckers who pick up and deliver goods within another member's state borders. This hauling process is known as ______.

cabotage

What are two impediments to establishing economic integration? Multiple select question restrictions to the factors of production concerns over national sovereignty potential job losses trade surplus

concerns over national sovereignty potential job losses

Two qualifications put on new members to join the EU were ______. Multiple select question. deregulating markets privatizing state assets creating inflationary standards implementing state-run industries

deregulating markets privatizing state assets

The ______ theories of international trade predict that free trade allows countries to specialize in producing goods and services that they are most efficient at producing, and unrestricted free trade encourages this specialization. Multiple choice question.

economic

Restrictions have been placed on new members to the EU to combat the potential problems associated with ______.

enlargement

The political reasons for regional economic integration have been an important factor in several attempts to establish Blank______ trade areas and customs unions.

free

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

Lauren's company is eager to trade with Canada because there are no quotas or subsidies on the product they want to sell there. This describes a ______.

free trade area

Initially, Mercosur provided a(n) __________ (increase or decrease?) in trade between Brazil and Argentina.

increase

Politicians on both sides of the table in the United States claim that NAFTA is responsible for significant Blank______ in the US and as a result, it has now been renegotiated to the USMCA.

job losses

One argument explaining the difficulty of establishing trade areas in Africa is that these countries have ______ and therefore need to be "protected" by tariff barriers from unfair foreign competition.

less-developed economies

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

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