Question 1

Please briefly explain the following forms of economic integration: free trade area, customs union, common market, economic union, and full political union.Provide an example of each form of economic integration.

Accepted Answer

Free Trade Area: In a free trade area, a...

Question 2

Because many governments have accepted part or all of the case for intervention, unrestricted free trade and FDI have proved to be

Accepted Answer

A)  only an ideal.
B)  a reality.
C)  a goal which should be realized soon.
D)  a goal that there is no rationale for.
E)  a goal for the WTO

Question 3

The European Union effectively became a single market with 340 million consumers in

Accepted Answer

A)  1992
B)  1998
C)  1994
D)  1993
E)  2001

Question 4

Which of the following statement is not accurate in regard to the European Union?

Accepted Answer

A)  Members of the European Union have mostly established a single currency
B)  Members of the European Union are moving toward a closer political union
C)  Members of the European Union have enlarged the EU to the current 27 countries
D)  Members of the European Union are discussing a common language
E)  Members of the European Union are discussing enlarging the EU to include another 4 European states

Question 5

The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers within the free trade are is called

Accepted Answer

A)  trade alteration.
B)  trade qualification.
C)  trade diversification
D)  trade diversion.
E)  trade creation.

Question 6

On January 1, 1993, the _______________ effectively became a single market with 340 million consumers.

Accepted Answer

A)  European Union
B)  South American Union
C)  North American Union
D)  Southeast Asia Union
E)  British Commonwealth

Question 7

Trade creation occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

Accepted Answer

A) True 
 B)False

Question 8

The two main reasons that have made ______________ difficult to achieve are cost and concerns over national sovereignty.

Accepted Answer

A)  political integration
B)  sociological integration
C)  religious integration
D)  cultural integration
E)  economic integration

Question 9

According to the textbook, most attempts to achieve regional economic integration have been

Accepted Answer

A)  extremely successful.
B)  amicable and friendly.
C)  contentious and halting.
D)  uneventful.
E)  failures

Question 10

A _______________ eliminates trade barriers between member countries and adopts a common external trade policy.

Accepted Answer

A)  free trade area
B)  global union
C)  tariff union
D)  common market
E)  customs union

Question 11

The ______________ is directly elected by the populations of the member states.

Accepted Answer

A)  European Committee
B)  European Parliament
C)  European Union
D)  European Task Force
E)  European Joint Commission

Question 12

Define trade creation and trade diversion with respect to regional economic integration.Given that integration can both create and divert trade, under what circumstances will regional integration be in the best interest of the world economy?

Accepted Answer

Trade creation occurs when high-cost dom...

Question 13

How many countries are members of the European Union?

Accepted Answer

A)  4
B)  9
C)  15
D)  36
E)  27

Question 14

The free trade area known as MERCOSUR consists of the following four countries:

Accepted Answer

A)  Chile, Mexico, Columbia, and Paraguay
B)  Argentina, Brazil, Paraguay, and Uruguay
C)  Chile, Brazil, Uruguay, and Columbia
D)  Mexico, Columbia, Paraguay, and Uruguay
E)  Argentina, Chile, Uruguay, and Brazil

Question 15

Like the common market, a(n)  _______________ involves the free flow of products and factors of production between members and the adoption of a common external trade policy.

Accepted Answer

A)  free trade area
B)  economic union
C)  global union
D)  customs union
E)  currency union

Question 16

Baulter Inc is an example of a Canadian company exporting to ________________

Accepted Answer

A)  the United States
B)  the EU
C)  Mexico
D)  India
E)  China

Question 17

The European Free Trade Association currently includes the following four countries:

Accepted Answer

A)  Ireland, Iceland, Denmark, and Belgium
B)  Norway, Iceland, Switzerland, and Liechtenstein
C)  Finland, Great Britain, Belgium, and Denmark
D)  Sweden, Norway, Austria, and Finland
E)  Romania, Bulgaria, Turkey, Croatia

Question 18

Of the two trade blocks in Europe, the _______________ is by far the more significant, not just in terms of membership, but also in terms of economic and political influence in the world economy.

Accepted Answer

A)  European Free Trade Association
B)  North Atlantic Trade Block
C)  European Union
D)  European Federation
E)  Mediterranean common market

Question 19

In the context of regional trade integration, concern about ______________ arise because close economic integration demands that countries give up some degree of their control over such key policy issues as monetary policy, fiscal policy, and trade policy.

Accepted Answer

A)  cost
B)  national sovereignty
C)  financial stability
D)  cultural uniformity
E)  tax sharing

Question 20

The first year after NAFTA turned out to be a largely negative experience for all three countries.

Accepted Answer

A) True 
 B)False

Exam 8: Regional Economic Integration

Trade creation occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

Correct AnswerverifiedShow Answer

Please briefly explain the following forms of economic integration: free trade area, customs union, common market, economic union, and full political union.Provide an example of each form of economic integration.

Correct AnswerverifiedFree Trade Area: In a free trade area, a...View AnswerShow Answer

The European Union effectively became a single market with 340 million consumers in

Correct AnswerverifiedShow Answer

Define trade creation and trade diversion with respect to regional economic integration.Given that integration can both create and divert trade, under what circumstances will regional integration be in the best interest of the world economy?

Correct AnswerverifiedTrade creation occurs when high-cost dom...View AnswerShow Answer

The free trade area known as MERCOSUR consists of the following four countries:

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How many countries are members of the European Union?

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Of the two trade blocks in Europe, the _______________ is by far the more significant, not just in terms of membership, but also in terms of economic and political influence in the world economy.

Correct AnswerverifiedShow Answer

Baulter Inc is an example of a Canadian company exporting to ________________

Correct AnswerverifiedShow Answer

On January 1, 1993, the _______________ effectively became a single market with 340 million consumers.

Correct AnswerverifiedShow Answer

The first year after NAFTA turned out to be a largely negative experience for all three countries.

Correct AnswerverifiedShow Answer

Because many governments have accepted part or all of the case for intervention, unrestricted free trade and FDI have proved to be

Correct AnswerverifiedShow Answer

A _______________ eliminates trade barriers between member countries and adopts a common external trade policy.

Correct AnswerverifiedShow Answer

According to the textbook, most attempts to achieve regional economic integration have been

Correct AnswerverifiedShow Answer

The ______________ is directly elected by the populations of the member states.

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The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers within the free trade are is called

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In the context of regional trade integration, concern about ______________ arise because close economic integration demands that countries give up some degree of their control over such key policy issues as monetary policy, fiscal policy, and trade policy.

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Like the common market, a(n) _______________ involves the free flow of products and factors of production between members and the adoption of a common external trade policy.

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The European Free Trade Association currently includes the following four countries:

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The two main reasons that have made ______________ difficult to achieve are cost and concerns over national sovereignty.

Correct AnswerverifiedShow Answer

Which of the following statement is not accurate in regard to the European Union?

Correct AnswerverifiedShow Answer

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Free Trade Area: In a free trade area, a...
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Trade creation occurs when high-cost dom...
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