MKTG456 Chapter 3

If after due process a​ country's trade policies are found to violate WTO​ rules, the country is expected to change those policies. If changes are not​ forthcoming, what action can the WTO​ take? A. Authorize trade sanctions against the losing country B. Devalue the​ country's currency C. Revisit the deliberations D. Require preferential trade agreements E. Fine the country a fixed financial penalty

A

In Latin​ America, the Common Market of the South​ (Mercosur) actually operates as​ a(n) ________. A. customs union B. community market C. common market D. economic union E. preferential trade participant

A

In the Middle​ East, what percent of the population is​ Muslim? A. 95% B. 10% C. 60% D. 80% E. 25%

A

NAFTA is a free trade area because​ _______. A. the governments of all three nations decided to eliminate tariffs and expand trade and investment B. restrictions are imposed on labor movements among members C. restrictions are imposed on the use of​ goods, services, and investments D. the issue of illegal immigration from Mexico to the United States is resolved E. the agreement does not leave the door open for discretionary protectionism

A

The African continent is an enormous landmass with a territory of 11.7 million square miles. It is not possible to treat Africa as a single economic unit with​ ___ countries on the continent. A. 54 B. 22 C. 32 D. 8 E. 69

A

The World Trade Organization​ (WTO) was formed January​ 1, 1995, and is the successor to which other​ organization? A. GATT B. FTAA C. DSB D. NAFTA E. ASEAN

A

The introduction of the euro by the EU resulted in multifaceted advantages that included​ ________. A. elimination of costs associated with currency conversion B. withdrawal of French Francs from circulation C. a choice for using local or European currency D. elimination of paper currency and coins E. fixed exchange rate worldwide

A

What is the key difference between NAFTA and an economic​ union? A. The economic union provides free flow of labor between countries. B. NAFTA has eliminated internal tariff barriers. C. NAFTA allows for discretionary protectionism. D. An economic union provides protection of intellectual property rights. E. NAFTA has established external tariffs.

A

Which of the following Mercosur members has a gross domestic product​ (GDP) greater than the combined GDP of the other eight​ members? A. Brazil B. Argentina C. Venezuela D. Peru E. Chile

A

Which of the following is NOT one of the trade agreements in the​ Asia-Pacific region? A. CACM B. APEC C. ASEAN D. ASEAN​ + 3 E. ASEAN​ + 6

A

Which of the following is the division of the World Trade Organization responsible for mediating complaints concerning unfair trade​ barriers? A. Dispute Settlement Body​ (DSB) B. Preferential Trade Agreements C. Barrier Mediation Group D. World Commerce Court E. The General Agreement on Tariffs and Trade​ (GATT)

A

Which of the following is the regional organization of​ oil-producing nations in the Middle​ East? A. The Gulf Cooperation Council​ (GCC) B. The Arab Maghreb Union​ (AMU) C. The Middle East Trade Union​ (METU) D. The Arab League​ (AL) E. The Arab Cooperation Council​ (ACC)

A

Which of the following members of the South African Development Community​ (SADC) represents about​ seventy-five percent of the income in the​ region? A. South Africa B. Botswana C. Mozambique D. Angola E. Namibia

A

Which of the following was the most significant challenge to a fully integrated ASEAN economic​ community? A. Lack of consensus among all ASEAN member nations B. Geographically separated members C. Resentment of​ China's "flood" of​ low-cost imports into member nations D. Historical conflicts between member nations E. Varying political systems of the member nations

A

Which of the following BEST describes an economic​ union? A. An agreement that allows for free movement of production factors including labor and capital. B. An agreement that seeks to coordinate economic and social policies to facilitate the free flow of​ capital, labor, and goods and services from country to country. C. An agreement to establish common external tariffs. D. An agreement to eliminate tariffs between two countries. E. An agreement that sets embargos against other countries.

B

Policy in Bhutan is guided by​ _________. A. currency exchange B. GNH C. GNP D. GNI E. GDP

B

The Treaty of Lagos established ECOWAS and was signed in 1975. What does ECOWAS stand​ for? A. Economic Citizens of West African States B. Economic Community of West African States C. Educating Citizens of West African States D. Economic Countries of West African Status E. Environmental Citizens of West African States

B

The​ ________ is the trade agreement among the United​ States, Canada, and Mexico. A. U.S.-Canada Free Trade Agreement​ (CFTA) B. North American Free Trade Agreement​ (NAFTA) C. Common Market of North America​ (CMNA) D. North American Regional Customs Union​ (NARCU) E. North American Union​ (NAU)

B

The​ number-one destination for exports from the United States is​ ________. A. Japan B. Canada C. Germany D. Mexico E. China

B

Which of the following best describes the purpose of the African Growth and Opportunities Act​ (AGOA) signed into law in​ 2000? A. To create further support for the​ oil-producing nations of Africa. B. To encourage African nations to make progress toward economic liberalization. C. To remove all trade tariffs from African countries to the United States. D. To create free trade among all African nations. E. To provide more foreign aid from the United States to developing African nations.

B

Which of the following helps describe the European Union​ (EU)? A. The EU restricts individuals in one country from gaining work permits in another. B. The economic and monetary union of 28 European nations. C. The EU is also called the Eurasian Economic Union. D. The EU has little impact on a​ company's global marketing strategy. E. The EU is a trade union and does not support a single currency.

B

The form of economic cooperation that calls for​ 1) eliminating internal barriers to trade and​ 2) establishing common external barriers is known as​ a(n) ______________. A. common market B. economic union C. customs union D. European Union E. free trade area

C

The ultimate goal of a free trade area​ (FTA) is to​ __________. A. reduce the amount of documentation needed to be completed at the borders B. allow people to move from one country to another freely C. have zero duties on goods that cross borders between the partners D. enable goods to be easily transported between countries E. divide the level of current duties charged

C

The ultimate goal of​ ________ is to have zero duties on goods that cross the borders between free trade partners. A. the World Trade Organization B. a customs union C. a free trade agreement D. the European Commission E. a preferential trade agreement

C

Which form of regional cooperation​ agreement, when fully​ implemented, entails creation of a unified central​ bank; the use of a single​ currency; and common policies on​ agriculture, social services and​ welfare? A. Free trade area B. Customs union C. Economic union D. Dispute settlement body E. Common market

C

Which of the following describes the euro​ zone? A. The northern European countries B. Great Britain C. Countries that adopted the single European currency D. The geographic area where the Euros are accepted E. The Central European countries

C

Which two issues that came to the foreground during Donald​ Trump's presidential campaign threaten repeal of​ NAFTA? A. Trade and currency exchange B. Canadian trade and currency exchange C. Illegal immigration and trade D. Illegal immigration and the building of a wall E. Poison pills and FTAs

C

A key to conducting business in the Middle East is​ ________. A. participation in the Arab Spring B. standardization C. focusing on the​ company, not the individual D. developing relationships E. segmentation by religious affiliation

D

A key​ word(s) in conducting business in the Middle East is​ _______. A. male dominance B. red tape C. discrimination D. connections. E. haggling

D

A regional group called APEC is a forum that brings 19 leaders together each fall to discuss issues of mutual interest. What does APEC stand​ for? A. Asia-Pacific European Cooperation B. American-Pacific Economy Cooperation C. American-Pacific European Cooperation D. Asia-Pacific Economic Cooperation E. Asia-Pacific Economy Contract

D

How many EU countries are also current members of the Euro zone​ (i.e., using the common currency called the​ euro)? A. 28 B. 15 C. 7 D. 19 E. 12

D

The key regional​ organization, commonly referred to as the Gulf Cooperation Council​ (GCC​), was established in 1981 by A. Belgium, Kuwait,​ Oman, Qatar, Saudi​ Arabia, and the United Arab Emirates B. Bahrain, Kuwait,​ Oman, Qatar, South​ Africa, and the United Arab Emirates C. Brazil, Kuwait,​ Oman, Qatar, Saudi​ Arabia, and the United Arab Emirates D. Bahrain, Kuwait,​ Oman, Qatar, Saudi​ Arabia, and the United Arab Emirates E. Bahrain, Kuwait,​ Oman, Qatar, Saudi​ Arabia, and the United States

D

The year 2017 marked 70 years since the enactment of GATT. What did GATT​ promote? A. Ending poverty B. Ending global tariffs C. Enforcement of trade agreements D. Trade among members E. Regional currencies

D

Which of the following is a forum that brings together political leaders with mutual interest in the Asian​ market? A. The Association of Southeast Asian Nations​ (ASEAN) B. The​ Trans-Pacific Partnership​ (TPP) C. Pacific Rim Trade Ministry D. The​ Asia-Pacific Economic Cooperation​ (APEC) E. The Commission on the Measurement of Economic Performance

D

In​ 2000, U.S. President George W. Bush signed the African Growth and Opportunities Act under the theme of​ "Trade, not​ Aid." The law is primarily designed to support African nations that make significant progress toward​ ______________. A. human rights B. better education C. increased exports D. decreased imports E. economic liberalization

E

The formation of an economic union builds upon all of the following key criteria EXCEPT​ ________________________. A. the establishment of common external barriers B. facilitating the free flow of​ capital, labor, and goods and services from country to country C. removing internal tariff barriers D. coordinating and harmonizing economic and social policies within the union E. each country maintaining their own currency

E

The newest member country to join the EU at the beginning of 2013 was​ _______. A. Poland B. Cyprus C. Latvia D. Slovenia E. Croatia

E

What shipping route in the Central American region has positively impacted the​ region? A. Gulf of Mexico B. Suez Canal C. Amazon River D. Nile River E. Panama Canal

E

Which country did NOT become a signature to the 1991 treaty known as Mercosur or Common Market of the​ South? A. Paraguay B. Argentina C. Brazil D. Uruguay E. Venezuela

E

Which of the following countries is outside of the Andean​ Community? A. Ecuador B. Bolivia C. Peru D. Colombia E. Brazil

E

Which of the following organizations was the predecessor to the​ WTO? A. The Cooperation Council B. Dispute Settlement Body​ (DSB) C. The European Union​ (EU) D. The United Nations​ (UN) E. The General Agreement on Tariffs and Trade​ (GATT)

E