Chapter 3

African companies will find it easier to gain access to financing from the U.S. Export-Import Bank due to:

AGOA

The Secretariat for Central American Integration is headquartered in:

Guatemala City.

The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except:

India.

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 Gulf Cooperation Council (GCC) includes all of the following countries except

Iraq.

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

MENA

The non-EU member which uses the euro as its currency is:

Vatican City.

The five original members of the Central American Integration System did not include:

Venezuela.

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

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

all of the above

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

all of the above

Trade ministers representing the WTO member nations meet ________ to work on improving world trade.

annually

The allure of the Latin American market has been its

considerable size.

Arrange the following in order from lowest to highest level of economic integration.

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

The reason why Greece, Ireland, Portugal, and Spain sometimes are referred to as the eurozone's "peripheral countries" is:

that they all rank lower than their EU neighbors in terms of infrastructure.

Considering the progress, attempts to achieve integration in Central America has been described as:

uncoordinated.

The markets of Central and Eastern Europe present interesting opportunities and offer attractive locations for low-cost manufacturing due to:

wage rates being lower than in Spain, Portugal and Greece.

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.

The most important preferential trading arrangements in Latin America do not include:

BRIC

The country that withdrew from the original members of the Andean Community is:

Chile.

A key word(s) in conducting business in the Middle East is:

Connection.

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

Customs union

The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n):

Customs union.

For the past 40 years Bhutan, a kingdom of 700,000 people in the Himalaya mountains, has relied on the following measure:

GNH.

Which member of the Central American Integration System has both the largest economy and the largest population?

Guatemala

In order to form a free trade area, South Africa has signed a Trade, Development, and Cooperation Agreement (TDCA) with:

EU.

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

The new country joining the EU at the beginning of 2014 is:

Estonia.

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n):

Free trade area.

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

GATT

The "Common Market of the South" in Latin America is used to describe:

Mercosur

Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except:

Panama.

In recent years, the economy of selected countries in ECOWAS has improved except in:

Sierra Leone.

Which of the following ASEAN countries ranks number one in terms of two-way trade with the United States?

Singapore

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

Singapore

With the global economic crisis as a backdrop, the first-ever Happiness Congress was held in:

Spain.

NAFTA creates a free trade area in North America. However, Mexican avocado growers:

can only ship avocados to the United States in winter months.

Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving into the region for all of the following reasons except:

core products and Western brand names need changes to meet consumer demands.

The introduction of the euro by 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.

As a result of CFTA, the U.S. automakers participate in the Canadian auto market, thereby benefiting due to:

greater economies of scale

Before an agreement can be reached between the United States and European Union, major differences will have to be worked out. These differences include aspects related to all of the following except:

job creation.

Custom unions or a common market does not create a free trade area as compared to NAFTA due to:

no common external tariffs.

A true economic union requires:

political unity.

The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:

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

About 70% of Ecuador's flower harvest is exported to:

the United States

The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with:

the United States.

The Maastricht Treaty called for:

the creation of an economic and monetary union in Europe.

NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that:

the governments of all three nations decided to eliminate tariffs.

In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because:

they must import most of the goods and services.