Global Business Attendance questions

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members

True

A political union creates a central source for coordinating the economic, social, and foreign policy of member states

True

The European Free Trade Association is the most enduring free trade area in the world

True

While the World Trade Organization and other institutions have been working toward achieving a free trade regime, complete success has not yet occurred.

True

Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia. This form of FDI is called

A greenfield investment

These latin American countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common external trade policy and charge the same tariffs, which level of economic integration best describes this arrangements

Customs Union

In a free trade area , all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted

False

The flow of foreign direct investment refers to the total accumulated value of foreign owned assets at a given time

False

The globalization of the world economy is having a negative effect on the volume of FDI

False

A computer manufacturing firm from the United States invests in a microprocessor manufacturing plant in Taiwan. This is an example of

Foreign Direct Investment

DiamondPlus Jewelers currently has $583,000 in foreign-owned assets. This represents the _____ of the company.

Stock of FDI

Under a common market agreement, you would find

free movement of factors of production between member nations

Once it undertakes FDI, a firm becomes

multinational enterprise