BUAD 2080 Exam 4
A(n) ________ requires member nations to harmonize their tax, monetary, and fiscal policies and create a common currency.
economic union
Which of the following is an important goal of regional economic integration?
to raise the living standards of people
Which of the following is a potential drawback of regional economic integration?
trade diversion
Which of the following countries of the Central American Common Market has adopted the U.S. dollar as its official currency?
El Salvador
The main purpose of the ________ is to debate and amend legislation proposed by the European Commission of the EU.
European Parliament
The European Union plan that established its own central bank and currency in January 1999 is known as the ________.
European monetary union
Economic integration whereby countries remove barriers to trade and the movement of labor and capital among members, set a common trade policy against nonmembers, and coordinate their economic policies is called a(n) ________.
economic union
Economic integration whereby countries remove all barriers to trade among themselves, but set a common trade policy against nonmembers is called a(n) ________.
customs union
A group of fifty-three nations on the African continent joined forces in 2002 to create the ________.
African Union
In today's world, the Andean Community is best described as an incomplete ________.
customs union
The common market between Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua is referred to as the ________.
Central American Common Market
For countries to become members of the European Union, they have to meet certain demands laid down by the EU referred to as the ________.
Copenhagen Criteria
No proposed legislation becomes EU law unless the ________ votes it into law.
Council of the European Union
Which of the following statements is true of NAFTA?
It eliminated all tariffs and nontariff trade barriers on goods originating from within North America.
Which of the following is true of trade diversion?
It generally increases the prices of products in a nation
The newly-formed countries that emerged after the break up of the United Frontier States (UFS) are interested in learning more about integration in the Americas. Because the former UFS nations have many similarities with the countries of North and South America, they believe they can learn from the integration experience in the Americas. To that end, they pose the following questions. The regional trade agreement between Canada, Mexico, and the United States to eliminate tariffs and non-tariff barriers between themselves is known as the ________.
North American Free Trade Agreement
Which of the following is a result of trade creation?
The demand for goods tends to increase.
Which of the following countries has been facing difficulties in negotiations regarding its application for European Union membership?
Turkey
The main objectives of the Andean Community include ________.
a common external tariff
Today, the Southern Common Market (MERCOSUR) acts as a(n) ________.
customs union
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. If these twenty-six nations continue to eliminate all barriers to trade among themselves and set a common trade policy against nonmembers, they would create a ________.
customs union
Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and set a common trade policy against nonmembers is called a ________.
common market
The primary purpose of the Gulf Cooperation Council at its formation was to ________.
cooperate with the increasingly powerful trading blocs in Europe at the time
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. Country M wants member nations to harmonize their tax, monetary, and fiscal policies and wants to create a common currency. Country M is requesting for the creation of a(n) ________ in the Moonland nations.
economic union
The common currency of the European Union is known as the ________.
euro
The European Commission is the ________ body of the European Union.
executive
Countries belonging to a ________ maintain whatever policies they see fit against nonmember countries.
free trade area
The newly-formed countries that emerged after the break up of the United Frontier States (UFS) are interested in learning more about integration in the Americas. Because the former UFS nations have many similarities with the countries of North and South America, they believe they can learn from the integration experience in the Americas. To that end, they pose the following questions. The NAFTA is best considered a(n) ________.
free trade area
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. As a first stage of cooperation, the countries agree to remove all barriers to trade among themselves. Each country also maintains policies it sees fit against nonmembers. At this stage, Moonland Union can be described as a ________.
free trade area
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. The regional trading bloc that Zucoland will be joining is most likely a(n) ________.
free trade area
Which of the following is the lowest extent of regional economic integration?
free trade market
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?
greater consensus
Higher levels of trade between nations result in ________.
greater purchasing power
The main challenge facing the Caribbean Community and Common Market (CARICOM) is that ________.
most members trade more with nonmembers than they do with each other
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. Country X advocates the greatest level of integration possible for the member nations of the Moonland Union. Which of the following is Country X most likely to support?
political union
Twenty-six nations of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union. They are not sure, however, to what extent they want to cooperate. If all countries in the bloc are asked to give up the greatest amount of sovereignty, they would most likely be joining a(n) ________
political union
Which of the following is the greatest extent of regional economic integration?
political union
The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________.
regional economic integration
A group of nations in a geographic area undergoing economic integration is called a ________.
regional trading bloc
The major objective of the Association of Southeast Asian Nations (ASEAN) is to ________.
safeguard the region's economic and political stability
The stated aim of the organization for Asia Pacific Economic Cooperation (APEC) is to ________.
strengthen the multilateral trading system
The Free Trade Area of the Americas (FTAA) is a trade agreement ________.
that has been proposed to create the largest free trade area on the planet
Which of the following treaties was signed by the members of the European Coal and Steel Community in 1957 for creating the European Economic Community?
the Treaty of Rome
