Chapter 9

The is primarily a consultative rather than legislative body.

A. Council of the European Union B. Court of Justice C. European Commission D. European Parliament D

Why is the European Council said to be the ultimate controlling authority within the EU?

A. Draft legislation from the commission can become EU law only. if the council agrees B.its role in settling competition is becoming increasingly imprint to the business C.It is responsible for implementing EU legislation and monitoring compliance with EU laws by member states D. it has the right to vote on the appointment of commissioners

The emerging role of the companies proposing mergers and acquisitions. in competition policy suggests the EU is increasingly willing and able to intervene and impose con

A. European Council B. Court of Justice C. European Commission D. European Parliament C

The_____is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

A. European Parliament B. European Commision C. Court of Justice D. Council of the European Union B

There are two main trading blocks in Europe, the European Union and the

A. European free trade association B. Andean Community C. Mercosur D. European Council A

Which of the following is the most frequently aired objection to free trade in Africa?

A. The countries need to be protected by tariff barriers from unfair foreign competition B.these countries are not ready for a full fledged political union with a common currency C. these economies are too small for free trade to exist D. The larger nations such as South Africa and Kenya stand to lose too much from free trade and compettion A

On average, studies indicate that NAFTA's overall impact has been

A. large but negative B. large but positive C. small but positive D. small but negative C

Establishment of the euro created the largest currency zone in the world, replacing the position the U.S. dollar had held for decades.

A. true B. false B

may also occur when higher-cost external producers are replaced by lower-cost external producers within the free trade area.

A.trade diversion B. a common market C. trade creation D. a customs union C

Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from Country B. Country A previously imported such machinery at lower rates from another country. Which of the following has occurred in this scenario?

A.trade diversion B. trade deficit C. trade creation D. efficiency gain A

A key benefit resulting from the adoption of the euro is the ability to compare prices across member markets.

A.true B.false A

The implied loss of national sovereignty to the European Central Bank (ECB) underlies the decision by Great Britain, Denmark, and Sweden to stay out of the euro zone for now.

A.true B.false A

Which of the following established the second largest currency zone in the world?

A. Treaty of Rome B. Treaty of Lisbon C. Maastricht treaty D. Single European Act C

Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. Thev. however. are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of?

A. a customs union B. an economic union C. a common market D. a free trade area D

eliminates trade barriers between member nations, adopts a common external policy, and permits factors of production to move freely between member countries but it also requires a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy.

A. a free trade area B. a common market C. a customs union D. an economic union D

Which feature of an economic union differentates it from a common market.

A. ability of factors of production to move freely between members B. free flow of products and factors of production between member countries C. a common external trade policy toward nonmembers D. a common monetary and fiscal policy D

A political benefit of economic integration is that it

A. allows countries to specialize in the production of goods and services that they can produce most efficiently B. enables participants to achieve gains from the free flow of investment C. enables participants to achieve gains from the free flow of trade D. reduces the potential for violent conflict and war D

Mercosur originated as - between Brazil and Argentina in 1988.

A. an economic union B. a common market C. a free trade pact D.a customs union C

Which level of economic integration eliminates trade barriers between member countries and adopts a common external trade policy?

A. common market B. economic union C. political union D.customs union

In theory, WTO rules should ensure that a free trade agreement

A. does not result in trade diversion B.results in trade creation C. results in trade diversion D. does not result in trade creation A