MGT301 Ch.9
Before the United Kingdom decided to exit the EU, how many total countries were involved by 2014?
28
is considered the most successful attempt at regional economic integration.
The EU
What three countries made up NAFTA?
United States Canada Mexico
The United States-Mexico-Canada Agreement renegotiated NAFTA and requires automakers to produce _____ of a vehicle's content in North America to qualify for zero tariffs.
62.5 percent
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.
Bolivia, Chile, Colombia, Ecuador, Peru
Mercosur is a free trade pact started in 1988 by which two South American economies? (Check all that apply.)
Brazil Argentina
What are two impediments to establishing economic integration?
Costs of integration Concerns over national sovereignty
Under the Andean Pact, which two members received special concessions based on the size of these countries?
Ecuador Bolivia
What are the four main institutions responsible for determining economic policy in the EU?
European Commission European Parliament Court of Justice Council of the European Union
Because of its economic and political influence, the _____ is considered the most significant trading bloc in Europe.
European Union
Which two groups represent major trading blocks in Europe?
European Union European Free Trade Association
Because of its economic and political influence, the _____ is considered the most significant trading bloc in Europe.
European Union***
One of the reasons the European Union was originally formed was because
Europeans desired a lasting peace after enduring two devastating world wars.
True or False: The political structure responsible for economic policies in the EU consists of a single office known as the Court of Justice.
False
What are three advantages of regional market integration that can result in cost savings to a business? (Check all that apply.)
Free movement of goods across borders Simplified tax regimes Harmonized product standards
What is the least integrated form of economic integration?
Free trade area
What are three forms of economic integration?
Free trade area Common market Full political union
Which two political factors support the idea for economic integration of nations through trade?
Interdependency among nations decreases the potential for violent conflict. It can enhance the political weight of those countries in the world.
In the campaign to leave the EU, certain groups voted to stay and others voted to leave. What were two characteristics of those who wanted to leave?
Less educated Older
What committed EU members to adopt a common currency by January 1, 1999?
Maastricht Treaty
The trade pact developed in 1988, initially between Argentina and Brazil, is called ______.
Mercosur
Which agreement was an attempt at regional economic integration in the United States?
North American Free Trade Agreement
Which three nations are a part of ASEAN? (Check all that apply.)
Philippines Indonesia Singapore
What are two requirements countries must take to qualify for EU membership?
Respect human rights Establish stable democratic government
What two political factors led to the development of the European Union? (Check all that apply.)
The devastation of western Europe during the two world wars. Europe's desire to hold its own on the world's political and economic stage.
One political reason for economic integration is the potential to minimize violent conflict between nations. T or F
True
True or False: The USMCA prohibits duties on music and ebooks.
True
The Maastricht Treaty committed EU members to
adopt a common currency by January 1, 1999.
An argument against regional free trade agreements contends that the benefits have been oversold, but ______ have often been ignored.
costs
There are presently 19 trade blocs in Africa, and many of these blocs have been _____ for years.
dormant
Regional _____ integration creates agreements among countries in a specific geographic area in order to reduce and eventually remove tariff and nontariff barriers to the free flow of goods.
economic
The goal of NAFTA was to
eliminate tariffs on trade between the nations.
Economic theories advocate for BLANK trade and investment that will allow participating countries to gain economically. (Choose free or restricted.)
free
The Association of Southeast Asian Nations was formed with the intent to foster _____.
free trade
During the campaign for leaving the EU, one of the recent claims said that leaving the EU would allow the British to take back control of _____.
immigration
There has been a(n) _____ in regional economic integration in the past two decades.
increase
The creation of a single market creates _____ costs of doing business.
lower
Based on the objectives of the Single European Act, the principle of _____ states that a product standard developed in one EC country should be accepted in another.
mutual recognition
African countries have attempted to form a continental trade agreement, but have been stymied by significant ______ turmoil.
political
Based on economic theories, free trade is viewed as a ______ as all participating nations stand to gain.
positive-sum game
The Single European Act abolished restrictions on cabotage, which is the
right of foreign truckers to pick up and deliver goods within another member state's borders.***
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 U.S. and Canadian workers in the ______ industry following the establishment of NAFTA.
textile
Costa Rica, El Salvador, Guatemala, and other countries formed a common market in the early 1960s that was called
the Central American Common Market.
Some economists argue that regional free trade agreements will provide global benefits only if
trade creation exceeds trade diversion.
The collapse of the Central American Common Market was a result of ______.
war between Honduras and El Salvador***