Chapter 10
The blueprint for the European Union began with the Treaty of Rome in 1957.
TRUE The Treaty of Rome established the European Economic Community (EEC). The European Union is an extension of the EEC.
The WTO is wholly dedicated to making trade among nations more efficient.
TRUE The World Trade Organization, with its 160 members and 24 observers, is wholly dedicated to making trade among nations more efficient.
The initial aim of a multinational market is to protect businesses that operate within its borders.
TRUE The initial aim of a multinational market is to protect businesses that operate within its borders
The first Soviet republics to declare independence were the Baltic states.
TRUE The series of events after the aborted coup against Mikhail Gorbachev led to the complete dissolution of the USSR. The first Soviet republics to declare independence were the Baltic states, which quickly gained recognition by several Western nations.
Which of these levels of economic integration has no restrictions on internal trade and free flow of capital among member nations and lacks only political unity to become a political union? A. Common market B. Free trade area C. Regional cooperation group D. Customs union E. Preferential trade agreement
A. Common market A common market is a unified economy and lacks only political unity to become a political union.
When the Soviet Union dissolved, the _____ emerged that had 12 members that agreed to a loose economic and political alliance with open borders but no central government. A. European Trade Pact B. Commonwealth of Independent States C. Eurasian Alliance D. Russian Confederation E. Post-Soviet Bloc
B. Commonwealth of Independent States
With the expansion of the European Union, existing members fear: A. retaliation by the Soviet Union against them. B. a flood of cheap labor into their countries. C. that OPEC will cut off supplies to countries supporting the expansion of the European Union. D. free movement of capital amongst the member nations. E. that they would need to close the borders between member nations.
B. a flood of cheap labor into their countries.
The institutions of the European Union form a(n) _____ pattern. A. bilateral B. unitary C. federal D. provincial E. autarchic
C. federal with executive, parliamentary, and judicial branches.
Which of the following treaties allows for the free movement of goods, persons, services, and capital throughout the member states of the European community. A. Rome Treaty B. Berlin Treaty C. Maastricht Treaty D. Barcelona Treaty E. Athens Treaty
C. Maastricht Treaty
Though now disbanded, which of the following was considered to be the most notable enforced political union of the last 40 years? A. NATO B. NAFTA C. MERCOSUR D. COMECON E. LAFTA
D. COMECON The most notable enforced political union was the Council for Mutual Economic Assistance (COMECON), a centrally controlled group of countries organized by the Soviet Union
Which of the following countries rejected the euro? A. Austria B. Greece C. Finland D. Denmark E. Spain
D. Denmark
The adoption of the euro has facilitated which of the following? A. Increased complexity of online marketing B. Elimination of parallel imports C. Increase in European import tariffs by 60 percent D. Easily recognizable price differentials E. Decrease in the toughness of market competition in Europe
D. Easily recognizable price differentials
Which of the following is true of large multinational markets? A. They lead to negligible marketing efficiencies. B. They are incapable of achieving economies of scale. C. They are particularly important to businesses not accustomed to mass production. D. They result in decreased purchasing power. E. They employ coordinated programs to foster economic growth.
E. They employ coordinated programs to foster economic growth. Most multinational groups have coordinated programs to foster economic growth as part of their cooperative efforts.
A commonwealth of nations is an organization providing for the strongest possible economic integration relationship
FALSE A commonwealth of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration.
A customs union is the most fully integrated form of regional cooperation.
FALSE A political union is the most fully integrated form of regional cooperation. It involves complete political and economic integration, either voluntary or enforced.
Europe and Asia have a trade group that has emerged and persisted since the dissolution of the Soviet Union called the Newly Independent States.
FALSE Europe and Asia have a trade group that has emerged and persisted since the dissolution of the Soviet Union: the Commonwealth of Independent States (CIS).
Historically, standards have been used to effectively increase market access.
FALSE Historically, standards have been used to effectively limit market access. Restrictive standards have kept competing products, whether from other European countries or elsewhere, out of their respective markets.
With the adoption of the euro, price differentials are much easier to spot, and the consumer can search for the best bargains in brand-name products more easily.
TRUE With the adoption of the euro, price differentials are much easier to spot, and the consumer can search for the best bargains in brand-name products more easily.
Which of the following is one of the reasons that have hampered the conferences held by the United Nations Economic Commission for Africa to bring about holistic integration? A. Governmental inexperience B. Depletion of natural resources C. Excessive influx of products D. Lack of beneficial funds E. Excess of cheap labor
A. Governmental inexperience
Which of the following statements is true of the European Parliament? A. It has extensive budgetary powers that allow it to be involved in major EU expenditures. B. It serves as a purely consultative body. C. It is responsible for debating and deciding which proposals of the Single European Act to accept as binding on EU members. D. It initiates policy and supervises its observance by member states. E. It is responsible for challenging any measures incompatible with the Treaty of Rome.
A. It has extensive budgetary powers that allow it to be involved in major EU expenditures.
Which of the following is the basic requisite for the development of a supranational market arrangement? A. Political amenability among countries B. Business strategy sharing C. Adoption of common cultural prejudices D. Protection of the market by exercising boycotts E. Regulation of demand by increasing tariffs
A. Political amenability among countries Political amenability among countries is another basic requisite for the development of a supranational market arrangement.
Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions? A. Preferential tariff treatment for participating members B. Use of embargos to eliminate rival competition C. Formulation of cartels D. Seeking economic dominance through boycotts of rivals E. Movement toward a common language as a means to overcoming economic hurdles
A. Preferential tariff treatment for participating members
_____ has the potential to become the newest big emerging market (BEM), but its development will depend on government action and external investment by other governments and multinational firms. A. South Africa B. Canada C. Japan D. Singapore E. Britain
A. South Africa
Which of the following provisions established the parameters of the creation of a common currency for the European Union? A. The Economic and Monetary Union provision of the Maastricht Treaty B. The Single Currency provision of the Treaty of Rome C. The Enhanced Cooperation provision of the Treaty of Utrecht D. The Economic Union provision of the Treaty of Vienna E. The Free Trade provision of the Anglo-Irish Treaty
A. The Economic and Monetary Union provision of the Maastricht Treaty
Which of the following European Union institutions originally had only a consultative role but can now amend and adopt Union legislation? A. The European Parliament B. The Council of Ministers C. The Court of Justice D. The European Commission E. The European Central Bank
A. The European Parliament
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of _____. A. capitalism B. autocracy C. Marxist socialism D. despotism E. autarchism
A. capitalism
One of the long-term challenges facing the European Union in the next 50 years is: A. deciding about further enlargement. B. creation of a common currency. C. reducing the free flow of capital between its member nations. D. deciding on how to control the individualistic European population. E. establishing a court that would settle the disputes among member nations.
A. deciding about further enlargement.
A _____ involves complete political and economic integration, either voluntary or enforced. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)
A. political union
The most fully integrated form of regional cooperation is called a: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).
A. political union.
Which of the following is a requisite for the survival of any economic union? A. Avoiding potentially significant opportunities for international business B. Having agreements and mechanisms in place in order to settle economic disputes C. Including into the union, countries with diverse economies, distinctive monetary systems, developed agricultural bases, and different natural resources D. Establishing of a comprehensive agriculture and economic policy E. Ensuring biased treatment of goods produced within the union
B. Having agreements and mechanisms in place in order to settle economic disputes For an economic union to survive, it must have agreements and mechanisms in place to settle economic disputes.
Which of the following is a consequence of creation of large mass markets? A. It will cripple businesses accustomed to mass production and mass distribution. B. It will increase the significance of small national markets. C. It will lead to decreased purchasing power. D. It will increase import tariffs worldwide by at least 70 percent. E. It will lead to an overall drop in international trade.
B. It will increase the significance of small national markets. Economic integration creates large mass markets. Many national markets, too small to bother with individually, take on new dimensions and significance when combined with markets from cooperating countries.
Which of the following is one of the multilateral free trade agreements signed by the United States? A. CETA B. NAFTA C. NATO D. MERCOSUR E. LAFTA
B. NAFTA
The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the _____. A. UNDP B. OECD C. ASEAN D. LAIA E. APEC
B. OECD
Which is the trade group that is part of Europe and Asia and has emerged and persisted since the dissolution of the Soviet Union comprising of all the republics save the Baltic states? A. The European Union East B. The Commonwealth of Independent States C. The Eastern Bloc Economic Area D. The European Free Trade Association E. The Euro-Soviet Union
B. The Commonwealth of Independent States Europe (and Asia) has one other trade group that has emerged and persisted since the dissolution of the Soviet Union: the Commonwealth of Independent States (CIS).
Which of the following institutions is responsible for challenging any measures incompatible with the Treaty of Rome and for passing judgment, at the request of a national court, on the interpretation or validity of points of European Union Law? A. The International Court of Justice B. The European Court of Justice C. The International Criminal Court D. The European Common Judicial Council E. The European Security Council
B. The European Court of Justice
It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here? A. The European Commission B. The European Economic Community C. The Organization for Security and Co-operation in Europe D. The Asia-Pacific Economic Cooperation E. The European Community
B. The European Economic Community Following the success of the European Steel and Coal Community, a global economic revolution began in 1958 when the European Economic Community was ratified and Europe took the step that would ultimately lead to the present-day European Union (EU). It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances.
Which of the following makes the South African market an important base for serving nearby African markets that are too small to be considered individually? A. The rise of communism in South Africa B. The South African market's developed infrastructure C. The economic embargo imposed by the United Nations D. The existence of inward-looking trade and investment policies E. The South African government's nationalization initiative
B. The South African market's developed infrastructure
Which of the following is a provision of the commonwealth agreement signed by the Commonwealth of Independent States? A. To reject the powers of the old regimes B. To keep the ruble but allow new currencies C. To create disjointed control of nuclear weapons D. To invalidate all Soviet foreign treaties and debt obligations E. To avoid creating a European Union-style free trade association
B. To keep the ruble but allow new currencies The main provisions of the commonwealth agreement are to repeal all Soviet laws and assume the powers of the old regimes; launch radical economic reforms, including freeing most prices; keep the ruble but allow new currencies; establish a European Union-style free trade association; create joint control of nuclear weapons; and fulfill all Soviet foreign treaties and debt obligations.
Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European. A. a common language B. a long-established Christian heritage C. a dislike for foreigners D. a strong affiliation to monarchy and feudalism E. a democratic background and heritage
B. a long-established Christian heritage
Essentially, a free trade area (FTA) provides its members with: A. complete political integration. B. a mass market without trade barriers among partner countries. C. a regional cooperation for social development. D. a common market that eliminates all external tariffs. E. a market that offsets higher nontrade barriers with lower external tariff.
B. a mass market without trade barriers among partner countries. A free trade area provides its members with a mass market without barriers to impede the flow of goods and services among partner countries.
The Commonwealth of Independent States is: A. a political alliance with a central government. B. an economic and political alliance with open borders and no central government. C. an economic and political alliance with closed borders and a federal government. D. a federation of many states. E. a supranational organization similar to the old European community.
B. an economic and political alliance with open borders and no central government.
A _____ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations. A. preferential trade B. common market C. regional cooperation for development D. customs union E. free trade area
B. common market A common market agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.
The ties that bind members of the Commonwealth of Independent States stem mainly from their: A. agreement to the European Trade Pact. B. former Soviet membership. C. UN membership. D. affiliation to the Eurasian Alliance. E. WTO membership.
B. former Soviet membership.
Multinational market groups form: A. a large organization that promotes harmony by mutual agreement to a common peace treaty. B. large markets that provide potentially significant opportunities for international business. C. a conglomerate that seeks to undertake foreign trading ventures as one company. D. a nonprofit entity that works together to aid the development of underdeveloped countries. E. regional trading blocs without trade restrictions internally but with borders protected from outsiders.
B. large markets that provide potentially significant opportunities for international business. Multinational market groups form large markets that provide potentially significant opportunities for international business
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing post-communist market reforms. This implies that: A. the region is against establishing free markets. B. new business opportunities are emerging in this region. C. all of the eastern European countries can be viewed as one entity. D. all of these countries have made the same level of progress. E. all of these countries have had the same success in economic reform and growth.
B. new business opportunities are emerging in this region. Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing post communist market reforms. New business opportunities are emerging almost daily, and the region is described as anywhere from chaotic with big risks to an exciting place with untold opportunities.
Which of the following is the weakest of political unions that is mostly based on economic history and a sense of tradition? A. A conglomerate B. A community C. A commonwealth D. A proprietary colony E. A trade association
C. A commonwealth
ECOWAS, SADC, and EAC are active regional cooperative groups in _____. A. North America B. Australia C. Africa D. Europe E. Asia
C. Africa
The first Soviet republics to declare independence from the Soviet Union were the _____. A. Russian SFSR B. Ukrainian SSR C. Baltic states D. Falkland Islands E. Papal states
C. Baltic states
The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies. A. European Parliament B. European Committee of the Regions C. European Commission D. European Court of Auditors E. European Court of Justice
C. European Commission
Which of the following statements is true of the European Court of Justice? A. It initiates policy and supervises its observance by member states. B. Its decisions require approval by the top three nations of the European Union. C. Its decisions are final and cannot be appealed in national courts. D. It primarily has a consultative role in interpreting the nuances of the EU law. E. It can amend and adopt Union legislation.
C. Its decisions are final and cannot be appealed in national courts.
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called: A. multilateral economic associations. B. cartels. C. multinational market regions. D. trade associations. E. political and cultural associations.
C. Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.
The Treaty of _____ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers. A. Kent B. Paris C. Rome D. Cannes E. Hamburg
C. Rome
Which of these is the most advanced and viable of Africa's regional organizations? A. Economic Community of West African States B. African Development Bank C. Southern African Development Community D. Organization of African Unity E. Economic Community of Central African States
C. Southern African Development Community
Which of the following institutions has the responsibility to debate and decide which proposals of the Single European Act to accept as binding on European Union members? A. The European Commission B. The European Parliament C. The Council of Ministers D. The European Court of Justice E. The European Committee of the Regions
C. The Council of Ministers
A (n) _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. A. autarchy B. monocracy C. commonwealth D. proprietary colony E. trade association
C. commonwealth commonwealth of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration.
South Africa is most likely to experience rapid economic growth in as few as 10 years owing to: A. the rise of communism. B. its induction into the ASEAN. C. its industrial base. D. the economic embargo laid upon it by the UN. E. the decoupling of small African markets from it.
C. its industrial base.
The most basic economic integration and cooperation is the: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).
C. regional cooperation for development (RCD).
Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and: A. introducing autarchic trade policies. B. increasing trade barriers. C. wrestling with inflation. D. making import controls stringent. E. switching to a socialistic economy.
C. wrestling with inflation. Most eastern European countries are: privatizing state-owned enterprises, establishing free market pricing systems, relaxing import controls, and wrestling with inflation.
The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the _____. A. COMECON B. European Free Trade Area C. European Economic Area D. European Union E. Trans-Pacific Union
D. European Union
Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the: A. Newly Independent States. B. Economic Community of West African States. C. Commonwealth of Independent States. D. European Union. E. Trans-Pacific Union.
D. European Union.
As George Platt examines markets that might match his company's investment requirements, he is particularly interested in the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt most likely examining when reviewing transportation networks? A. Cultural factors B. Trade factors C. Political factors D. Geographic proximity E. Economic factors
D. Geographic proximity
What is the reason for Estonia's economic growth since independence from the Soviet Union to handily outpace the other Baltic nations? A. It took up the ruble. B. It nationalized all companies and land. C. It helped all its struggling banks by using state funds. D. It adopted the freest trading regime of the three Baltic nations. E. It joined the European Union immediately after its independence in 1992.
D. It adopted the freest trading regime of the three Baltic nations.
Which of the following is true of the Maastricht Treaty? A. It serves as a deterrent for the political unification of the European countries. B. It restricts movement of goods between the United Kingdom and France. C. It allows for the free movement of persons between the United States and Canada. D. It allows for the free movement of goods throughout the member states of the European Union. E. It is the first European treaty whose terms have been universally accepted.
D. It allows for the free movement of goods throughout the member states of the European Union.
Which of the following is a long-term challenge that the European Union is facing? A. Eliminating all tariffs on internal trade amongst member nations B. Establishing a common currency for the Union C. Including Asia into the Union D. Limiting the political aspects of the Union E. Finding ways to contract the Union
D. Limiting the political aspects of the Union The long-term challenges facing the Union in the next 50 years appear to fall into three categories: (1) improving the Union's economic performance, (2) deciding how to limit the political aspects of union, and (3) deciding about further enlargement. The last problem may well disappear as both multilateral and bilateral agreements continue to multiply around the world and as the WTO continues to gain influence and traction in trade barrier reduction.
With respect to the political factors that affect supranational markets, which of the following is one of the most cherished possessions of any nation? A. A two-party system B. A three-party system C. State federalism D. State sovereignty E. A benevolent upper class
D. State sovereignty Before entering into an economic union, a country should be clear about the advantages of the economic union. Moreover, the benefits must greatly outweigh the disadvantages before nations forgo any part of their sovereignty. It is therefore implied that state sovereignty is a cherished possession of any nation.
Which of the following was a customs union before becoming a common market? A. NAFTA B. DR-CAFTA C. Israel-Mexico Free Trade Agreement D. The European Union E. South Asian Free Trade Area
D. The European Union
Which of the following statements is true of the legal instruments used by the European Union? A. The European Union issues regulations that are binding against the member states if the national courts of the member states agree to the regulations. B. The European Union must confer with the United Nations before issuing directives against member states. C. The European Union directs all disputes involving the European Union law to the International Court of Justice. D. The European Union has the authority to issue regulations that bind the member states directly. E. The European Union requires the approval of individual nations to address binding decisions against an enterprise of that nation.
D. The European Union has the authority to issue regulations that bind the member states directly.
At the most general level, the _____ represents the most important and comprehensive trade agreement in history. A. NAFTA B. Amsterdam Treaty C. MERCOSUR D. WTO E. ASEAN
D. WTO
One of the first factors that gave the European Union an edge over others in the process of becoming a common market was: A. a similarity in agriculture and monetary policies. B. a similarity in political systems. C. a similarity in languages. D. a well-developed transportation network. E. a common affiliation toward communism.
D. a well-developed transportation network.
A _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group. A. preferential trade area B. currency union C. regional cooperation for development D. customs union E. free trade area
D. customs union A customs union enjoys the free trade area's reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the union.
A _____ is an intermediate step in the transition from a free trade area to a common market. A. political union B. currency union C. regional cooperation for development (RCD) D. customs union E. preferential trade area
D. customs union The customs union is a logical stage of cooperation in the transition from an FTA to a common market.
The _____ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members. A. Treaty of Rome B. Single European Act C. Maastricht Treaty D. Expansion Act E. Amsterdam Treaty
E. Amsterdam Treaty
The _____ is the decision-making body of the European Union that can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers
E. Council of Ministers
The European Union was created when the 12 nations of the European Community ratified the _____. A. Kent Treaty B. Paris Treaty C. Rome Treaty D. Cannes Treaty E. Maastricht Treaty
E. Maastricht Treaty
Which of the following institutions drafted the Maastricht Treaty that was presented to the European Union member states for ratification? A. The United Nations B. The World Trade Organization C. The European Commission D. The Commonwealth Delineation E. The Council of Ministers
E. The Council of Ministers
Which of the following is a reason for East Asia's economic success? A. The availability of an extraordinarily rich land B. The existence of a common currency C. The implementation of Marxist-socialist policies D. The rise of autocracy E. The emphasis placed on education and healthcare
E. The emphasis placed on education and healthcare The formula for success in East Asia was an outward-oriented, market-based economic policy coupled with an emphasis on education and healthcare.
Nations with complementary economic bases are least likely to: A. develop a distinctive monetary system. B. allow individual differences to be outweighed by the total benefit of economic integration. C. experience internal economic development. D. achieve enlargement of market opportunities through preferential tariff treatment. E. encounter frictions in the development and operation of a common market unit.
E. encounter frictions in the development and operation of a common market unit. Nations with complementary economic bases are least likely to encounter frictions in the development and operation of a common market unit.
Yugoslavia has been facing internal strife due to: A. reunification with Slovenia. B. European Parliament sanctions. C. adoption of Marxist-socialist policies. D. rise of autocracy. E. ethnic divisions.
E. ethnic divisions.
The Economic and Monetary Union provision of the Maastricht Treaty established the parameters of the creation of the _____. A. dollar B. pound C. rupee D. ruble E. euro
E. euro
A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. A. restricted trade area B. noncooperation agreement C. regional cooperation for development D. tariff pact E. free trade area
E. free trade area A free trade area is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.
The World Trade Organization is wholly dedicated to _____. A. the expansion of capitalism B. the elimination of language barriers in trade C. free and open national borders D. the enforcement of international anti-bribery laws E. making trade among nations more efficient
E. making trade among nations more efficient
Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit.
FALSE Nations with complementary economic bases are LEAST likely to encounter frictions in the development and operation of a common market unit.
The European Union has been an officially established political union since its inception.
FALSE Now that the Economic and Monetary Union is in place and most participating members share a common currency, the European Union is headed toward political union as well.
One of the major consequences of the Maastricht Treaty (1992) was that the 12 members of the European Union agreed to dissolve the Union.
FALSE The 12 nations of the European Community ratified the Maastricht Treaty and committed themselves to economic and political integration.
The Arab states on the Persian Gulf, Egypt, and Morocco have worked out an agreement on the Gulf Arabian Free Trade Area (GAFTA).
FALSE The Arab states on the Persian Gulf, Egypt, and Morocco worked out an agreement on an Arab Free Trade Area, sometimes called the Greater Arab Free Trade Area (GAFTA).
All three Baltic states started off with the same legacy of efficient industry and American-style capitalist economies.
FALSE The Baltic states started off with roughly the same legacy of inefficient industry and Soviet-style command economies.
The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC).
FALSE The Commonwealth of Independent States (CIS) was formed by the republics of the former Soviet Union.
The Council of Ministers of the European Union can enact into law all proposals involving changes in tax rates on products and services by majority vote.
FALSE The Council can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote.
The decisions of the European Court of Justice can be appealed in national courts.
FALSE The European Court of Justice (ECJ) is the European Union's Supreme Court. It is responsible for challenging any measures incompatible with the Treaty of Rome and for passing judgment, at the request of a national court, on the interpretation or validity of points of European Union law. The court's decisions are final and cannot be appealed in national courts.
The European Union is most accurately described as a free trade area.
FALSE The European Union is a common market that is on the road to a political union.
The importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form the World Trade organization (WTO).
FALSE The communist threat no longer exists, but the importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form the Union (EU).
The most basic level of economic integration and cooperation is the geographical local federation (GLF).
FALSE The most basic level of economic integration and cooperation is the regional cooperation for development (RCD).
A free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services.
TRUE A free trade area provides its members with a mass market without barriers to impede the flow of goods and services.
At the most general level, the WTO represents the most important and comprehensive trade agreement in history.
TRUE At the most general level, the World Trade Organization represents the most important and comprehensive trade agreement in history. However, beyond the WTO, multinational market groups take several other forms, varying significantly in the degree of cooperation, dependence, and interrelationship among participating nations.
Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD), have renamed their regional group the Economic Cooperation Organization (ECO).
TRUE Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD), have renamed their regional group the Economic Cooperation Organization (ECO).
Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.
TRUE Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.
An important objective of the member countries of the United Nations is bringing about mutual economic development.
TRUE Part of the efforts of the 193 member countries in the United Nations includes mutual economic development.
Ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007.
TRUE Ten new countries were added to the European Union in 2004. Bulgaria and Romania entered in 2007.
In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members.
TRUE The Amsterdam Treaty increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members.
The Commonwealth of Independent States is a loose economic and political alliance with open borders but no central government.
TRUE The CIS is a loose economic and political alliance with open borders but no central government.
The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty.
TRUE The European Union was created upon ratification of the Maastricht Treaty by 12 nations of the European Community.
The most advanced and viable of Africa's regional organizations is called the Southern African Development Community.
TRUE The Southern African Development Community is the most advanced and viable of Africa's regional organizations.