Global Business Ch.8

What does the WTO's nondiscrimination policy mean?

If country A lowers a trade barrier, it has to do the same for all WTO member countries.

How does the WTO enforce trade dispute settlements?

The WTO authorizes the winning country to use tariff retaliation

Which of the following is an example of a free trade area (FTA)?

United States-Mexico-Canada Agreement (USMCA)

The GATT, GATS, and TRIPS agreements assisted in defining the responsibilities of which organization?

World Trade Organization

Which of the following is the correct description of a free trade area (FTA)?

a group of countries that remove trade barriers among themselves

What do opponents argue is a barrier to global integration?

regional agreements

The Doha Round failed to accomplish its goals of promoting economic development in developing countries:

True

What has the slowdown in multilateralism led to?

- an acceleration of regionalism - no change in the status quo

What is the name of the organization for regional economic integration involving 21 member economies around the Pacific Ocean?

APEC

What are three examples of regional integration in the Asia Pacific?

ASEAN, ANZCERTA, APEC

Which countries are founding members of the Eurasian Economic Union (EAEU)?

Belarus, Kazakhstan, and Russia

Which region has the largest economy?

European Union (EU)

Efforts to achieve regional economic integration in Africa has proven highly effective:

False

In practice, managers should focus their attention more on a global level than a regional level:

False

Which of the following is a benefit of adopting the euro?

It imposes monetary disciplines on governments.

Which statement is TRUE about trade politics?

Managers that ignore trade politics may find themselves ill-equipped to handle changes in the external environment that impact business.

Mutual suspicion and rivalry are common between which two custom unions?

The Andean Community and Mercosur

What does global economic integration seek to build?

confidence

All of the following are benefits of global economic integration EXCEPT for which example?

creates a universal taxation system for business

The European Union (EU) is an example of what type of regional economic integration?

economic union

All of the following are viewed as hindrances to regional trade EXCEPT which example?

lower tax rates between regional trading members