International Business - Chapter 8 - Capitalizing on Global and Regional Integration
General Agreement on Tariffs and Trade (GATT)
A multilateral agreement governing the international trade of goods (merchandise).
Trans-Pacific Partnership (TPP)
A multilateral free trade agreement being negotiated by 12 Asia Pacific countries.
Schengen
A passport-free travel zone within the EU.
Non-discrimination
A principle that a country cannot discriminate among its trading partners.
Union of South American States (USAN/UNASUR)
A regional integration mechanism integrating two existing customs union (Andean Community and Mercosur) in South America.
Doha Round
A round of WTO negotiations to reduce agricultural subsidies, slash tariffs, and strengthen intellectual property protection that started in Doha, Qatar, in 2001. Officially known as the "Doha Development Agenda," it was suspended in 2006 due to disagreements.
A customs union in South America that was launched in 1969.
Andean Community
The official title for regional economic integration involving 21 members economies around the Pacific.
Asia-Pacific Economic Cooperation (APEC)
The organization underpinning regional economic integration in Southeast Asia.
Association of Southeast Asian Nations (ASEAN)
A free trade agreement between Australia and New Zealand.
Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER)
What county is the second largest exporter to the United States (after Canada)?
China
Common market
Combining everything a customs union has, a common market, in addition, permits the free movement of goods and people.
Combining everything a customs union has, a common market, in addition, permits the free movement of goods and people.
Common market
One step beyond a free trade area (FTA), a customs union imposes common external policies on nonparticipating countries.
Customs union
The Andean Community is an example of what type of regional economic integration?
Customs union
A round of WTO negotiations to reduce agricultural subsidies, slash tariffs, and strengthen intellectual property protection that started in Doha, Qatar, in 2001. Officially known as the "Doha Development Agenda," it was suspended in 2006 due to disagreements.
Doha Round
The WTO estimates that cutting global trade barriers by one third may raise worldwide income by approximately how much in US$?
$600 billion
United States-Dominican Republic-Central America Free Trade Agreement (CAFTA)
A free trade agreement between the United States and five Central American countries and the Dominican Republic.
Free trade area (FTA)
A group of countries that remove trade barriers among themselves.
Monetary union
A group of countries that use a common currency.
The euro zone accounts for approximately what percent of GDP?
21%
About how many people live in the European Union (EU)?
500 million
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
A WTO agreement governing intellectual property rights.
General Agreement on Trade in Services (GATS)
A WTO agreement governing the international trade of services.
Andean Community
A customs union in South America that was launched in 1969.
Mercosur
A customs union in South America that was launched in 1991.
North American Free Trade Agreement (NAFTA)
A free trade agreement among Canada, Mexico, and the United States.
Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER)
A free trade agreement between Australia and New Zealand.
Having all the features of a common market, members also coordinate and harmonize economic policies (in areas such as monetary, fiscal, and taxation) to blend their economies into a single economic entity.
Economic union
Global economic integration
Efforts to reduce trade and investment barriers around the globe.
Regional economic integration
Efforts to reduce trade and investment barriers within one region.
The currency currently used in 18 EU countries.
Euro
What is the common currency of most of the nations in the European Union?
Euro
The 18 EU countries that currently use the euro as the official currency.
Euro zone
The official title of European economic integration since 1993.
European Union (EU)
Under NAFTA, ____ blossomed in Mexico.
Export assembly factories
NAFTA is a free trade agreement between the US and Mexico.
False
Regional integration can lead to discrimination against member countries.
False
The European Union (EU) is a political union.
False
A group of countries that remove trade barriers among themselves.
Free trade area (FTA)
NAFTA is an example of what type of regional economic integration?
Free-trade area (FTA)
A multilateral agreement governing the international trade of goods (merchandise)
General Agreement on Tariffs and Trade (GATT)
A WTO agreement governing the international trade of services.
General Agreement on Trade in Services (GATS)
Efforts to reduce trade and investment barriers around the globe.
Global economic integration
Economic union
Having all the features of a common market, members also coordinate and harmonize economic policies (in areas such as monetary, fiscal, and taxation) to blend their economies into a single economic entity.
A customs union in South America that was launched in 1991.
Mercosur
A group of countries that use a common currency.
Monetary union
The global system that governs international trade among countries--otherwise known as the GATT/WTO system.
Multilateral trading system
A principle that a country cannot discriminate among its trading partners.
Non-discrimination
A free trade agreement among Canada, Mexico, and the United States.
North American Free Trade Agreement (NAFTA)
Customs union
One step beyond a free trade area (FTA), a customs union imposes common external policies on nonparticipating countries.
The integration of political and economic affairs of a region.
Political union
Efforts to reduce trade and investment barriers within one region.
Regional economic integration
A passport-free travel zone within the EU.
Schengen
Since 1992, passport and customs control among 12 of the member countries of the EU has been disbanded, and checkpoints at border crossing are no longer manned. This area became known as the:
Schengen
Euro zone
The 18 EU countries that currently use the euro as the official currency.
Euro
The currency currently used in 18 EU countries.
Multilateral trading system
The global system that governs international trade among countries--otherwise known as the GATT/WTO system.
Political union
The integration of political and economic affairs of a region.
Asia-Pacific Economic Cooperation (APEC)
The official title for regional economic integration involving 21 member economies around the Pacific.
European Union (EU)
The official title of European economic integration since 1993.
World Trade Organization (WTO)
The official title of the multilateral trading system and the organization underpinning this system since 2005.
Association of Southeast Asian Nations (ASEAN)
The organization underpinning regional economic integration in Southeast Asia.
A WTO agreement governing intellectual property rights.
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
A multilateral free trade agreement being negotiated by 12 Asia Pacific countries.
Trans-Pacific Partnership (TPP)
Canada is the largest exporter to the US, and China is the second-largest exporter to the US.
True
GATT became the WTO.
True
NAFTA is a free trade agreement among the US, Canada, and Mexico.
True
Regional integration can lead to discrimination against countries that are not members of the regional economic organization.
True
The European Union (EU) is an economic union.
True
The WTO includes, among other things, trade dispute mechanisms.
True
A regional integration mechanism integrating two existing customs unions (Andean Community and Mercosur) in South America.
Union of South American Nations
A regional integration mechanism integrating two existing customs unions (Andean Community and Mercosur) in South America.
Union of South American States (USAN/UNASUR)
A free trade agreement between the United States and five Central American countries and the Dominican Republic.
United States-Dominican Republic-Central America Free Trade Agreement (CAFTA)
The official title of the multilateral trading system and the organization underpinning this system since 2005.
World Trade Organization (WTO)
