Chpt 9: Regional Economic Integration
A(n) ______ union adds more economic integration to a common market by requiring a common currency, a common monetary and fiscal policy, and harmonization of tax rates. Multiple choice question. common custom political economic
economic
Restrictions have been placed on new members to the EU to combat the potential problems associated with _____. Multiple choice question. forecasting sovereignty enlargement polarization
enlargement
A(n) _______ union consists of a central governing body that regulates the economic, social, and foreign policy of member states.
political
African countries have attempted to form a continental trade agreement, but have been stymied by significant ______ turmoil. Multiple choice question. religious political economic
political
Under the new USCMA, in order to qualify for zero tariffs, automakers are required to Multiple choice question. source 62% of parts from European nations. manufacture cars in one location in entirety. produce 75% of a vehicle's content in North America. eliminate harmful emissions from all cars by 2050.
produce 75% of a vehicle's content in North America.
What are two aspects of NAFTA? Multiple select question. protection of intellectual property rights implementation of barriers for cross-border flow of services removal of most restrictions on foreign direct investment dismissal of national environmental standards
protection of intellectual property rights removal of most restrictions on foreign direct investment
What are two responsibilities of The European Central Bank? Multiple select question. set tax rates set monetary policy set interest rates set government tariffs
set monetary policy set interest rates
When NAFTA was proposed, most economists argued that it would have a _____ impact on both Canada and the United States. Multiple choice question. large small
small
National currencies were taken out of circulation in _____ for those countries that agreed to the euro as a common currency, Multiple choice question. 2010 2002 1995 1987
2002
Mercosur is a free trade pact started in 1988 by which two South American countries? Multiple select question. Peru Colombia Argentina Brazil
Argentina Brazil
In 1969, which countries created the Andean Pact that was modeled on the EU, but was not as successful in achieving regional groups objectives? Multiple choice question. Argentina, Brazil, Guyana, Paraguay, Uruguay Bolivia, Chile, Colombia, Ecuador, Peru Bolivia, Brazil, Colombia, Peru, Venezuela Argentina, Chile, Colombia, Peru, Venezuela
Bolivia, Chile, Colombia, Ecuador, Peru
In 2004, the US and six Central American countries formed a free trade agreement called Multiple choice question. Mercosur. NATO. CAFTA. NAFTA.
CAFTA.
Studies of the welfare effects of NAFTA suggest that _____ suffered a welfare loss while the other two countries saw small welfare gains. Multiple choice question. Mexico the United States Canada
Canada
What are two factors that support the idea for political integration of nations through trade? Multiple select question. Countries can enhance their political weight in the world Making nations interdependent can decrease the potential for violent conflict Countries will have an incentive to use military action to achieve their objectives Countries will have enhanced independent political power
Countries can enhance their political weight in the world Making nations interdependent can decrease the potential for violent conflict
The _____ concentrated in the trade of industrial goods and was made up of European countries that did not initially join the European Community. Multiple choice question. EFTA CAFTA EU NAFTA
EFTA
The most significant trading block in Europe in terms of numbers and economic influence is the ______ Multiple choice question. NAFTA CAFTA EFTA EU
EU
The movement toward regional economic integration has been most ambitious in _____. Multiple choice question. South America Canada the United States Europe
Europe
What is the name of the bank established in the EU to ensure price stability and is intended to be independent from political pressure? Multiple choice question. European Central Bank European Reserve World Bank International Monetary Fund
European Central Bank
Which of these trade unions is made up of European countries that initially decided NOT to be part of the European Community and emphasized free trade in industrial goods? Multiple choice question. European Free Trade Association Mid-Europe Free Trade Association NAFTA Intercontinental Free Trade Association
European Free Trade Association
Following the devastation of two world wars in Europe, the _____ was established as a means to reach lasting peace. Multiple choice question. United Nations North American Free Trade Association European Union European Free Trade Association
European Union
True or false: The European Union is an example of a fully-formed political union.
False
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 Free movement of goods across borders Implementation of varied currencies Harmonized product standards Simplified tax regimes
Free movement of goods across borders Harmonized product standards Simplified tax regimes
NAFTA abolished tariffs on 99% of the goods traded between _____. (check the three that apply) Multiple select question. Panama Mexico United States Chile Canada
Mexico United States Canada
What are two benefits of a common currency in the European Union? Multiple select question. Savings from handling just one currency Removal of independent national control Easier to compare prices across Europe Higher prices for European consumers
Savings from handling just one currency Easier to compare prices across Europe
What are three advantages of regional market integration that can result in cost savings to a business? Multiple select question. Simplified tax regimes Higher tariff and nontariff barriers Harmonized product standards Free movement of goods across borders Implementation of varied currencies
Simplified tax regimes Harmonized product standards Free movement of goods across borders
Which three nations are a part of ASEAN? Check all that apply. Multiple select question. Singapore Indonesia Mexico Philippines Brazil Argentina
Singapore Indonesia Philippines
Which three long-term EU members have still NOT agreed to the euro as a common currency? Multiple select question. Austria Sweden Great Britain Denmark Germany
Sweden Great Britain Denmark
True or false: As a consequence of competitive pressure in the European automobile industry, the introduction of the euro has led to lower prices for consumers. True false question.TrueFalse
True
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 be seen as a major player in world politics and economics Europe's need for a common language and culture Europe's desire to assist its former colonies
The effects of two world wars on western Europe Europe's desire to be seen as a major player in world politics and economics
True or false: All WTO members were participating in regional trade agreements by 2019. True false question.TrueFalse
True
True or false: As a consequence of competitive pressure in the European automobile industry, the introduction of the euro has led to lower prices for consumers.
True
NAFTA promoters felt that the result of NAFTA members moving production operations to Mexico would lead to Multiple choice question. fewer jobs being available in Mexico. US and Canadian consumers benefiting from lower prices. more jobs available in the US and Canada. US businesses exporting less to Mexico because incomes would decrease.
US and Canadian consumers benefiting from lower prices.
Who are the three members of the North American Free Trade agreement? Multiple select question. United States Canada Costa Rico Greenland Mexico
United States Canada Mexico
A(n) ______ market includes the aspects of a customs union and allows factors of production to move freely among members.
common
An economic union adds what three features to a common market's features? Multiple select question. common monetary & fiscal policy common currency governed by the same legislature coordinated tax rates integration of equity markets
common monetary & fiscal policy common currency coordinated tax rates
One of the first steps to economic and political integration is a(n) ____ union, where trade barriers among member nations are removed and a common trade policy is adopted. Multiple choice question. customs common economic political
customs
The two restrictions put on new members that joined the EU were _____. Multiple select question. free movement of labor among the new and existing members was prohibited for several years they could not adopt the euro for several years they could only adopt the euro if they changed their political systems they could not decrease trade barriers until they adopted the euro
free movement of labor among the new and existing members was prohibited for several years they could not adopt the euro for several years
What are two characteristics of a common market? Multiple select question. free movement of labor and capital no barriers to trade among member countries stringent restrictions on immigration limitations on cross-border flows of capital
free movement of labor and capital no barriers to trade among member countries
In which level of economic integration are all barriers to trade among member countries removed? Multiple choice question. common market economic union customs union free trade area
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 _____. Multiple choice question. full political union common market free trade area customs union
free trade area
While the loss of national sovereignty has been the major reason for the British exit from the EU, more recently concerns over _____ have added to reasons for the exit. Multiple choice question. polarization customization isolation immigration
immigration
As trade barriers have minimized, there has been a(n) (increase or decrease?) in price competition within the European Union and NAFTA.
increase
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 _____ in the US and as a result, it has now been renegotiated to the USCMA. Multiple choice question. job losses price increases trade barriers intellectual property
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. Multiple choice question. technological know-how less-developed economies only one product to offer higher safety standards
less-developed economies
Trade creation takes place when _____-cost producers replace other types of producers already within the free trade area. Multiple choice question. high low
low
The establishment of the euro is seen as an amazing political feat because it required participating governments to give up control over _____ policy. Multiple choice question. monetary tariff immigration trade
monetary
Economic theories suggest that free trade allows countries to Multiple choice question. competitively produce any goods and services they choose. minimize their economic growth. specialize in producing goods and service that they are most efficient at producing. become less efficient in their production capabilities.
specialize in producing goods and service that they are most efficient at producing.
As of the writing of this text, Canada and Mexico were reluctant to sign on to the USMCA deal because the United States is imposing a 25 percent tariff on _____ imports. Multiple choice question. agricultural grocery produce rubber steel
steel
Opponents of NAFTA claimed that there would be a large depletion of _____ from the US and Canada as firms from these countries sought to increase profits by paying lower wages in Mexico. Multiple choice question. quality jobs taxes barriers
taxes
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. Multiple choice question. software development textile oil banking
textile
The Andean Community, while not as successful at meeting the goals it set, was based on the model established by _____. Multiple choice question. CAFTA the European Union Mercosur the North American Free Trade Agreement
the European Union
