question

The country of Argonia and the country of Berylia imposed tariffs on imports from all countries. They set up a free trade area, removing all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Argonia now begins to import sugar from Berylia. Previously, Argonia was indigenously producing sugar at a higher cost. Thus, Argonia benefits from this transaction. This is known as _____.

answer

Correct trade creation

question

Which of the following is true of the criteria to qualify for membership to the European Union (EU)?

answer

Correct The applicants were required to tame inflation.

question

_____ occurs when lower-cost external suppliers are replaced by higher-cost suppliers within a free trade area.

answer

Correct Trade diversion

question

Which of the following is true of the Andean Pact of 1969?

answer

Correct Political and economic problems seem to have hindered cooperation among member-countries of the Andean Pact.

question

Which of the following is the goal of the Caribbean Single Market and Economy?

answer

Correct To harmonize macroeconomic and monetary policy between member states

question

A(n) _____ is defined as a central political apparatus that coordinates the economic, social, and foreign policy of the member states.

answer

Correct political union

question

Which of the following is a solution to the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations?

answer

Correct Establishment of a political union

question

The European Community was established with the signing of the _____ in 1957.

answer

Correct Treaty of Rome

question

Which of the following refers to an association of English-speaking Caribbean states that are attempting to establish a customs union?

answer

Correct CARICOM

question

Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?

answer

Correct Customs union

question

Which of the following is a reason why Mercosur was temporarily suspended in 2001?

answer

Correct An economic crisis in Argentina

question

Which of the following is a drawback of adopting the euro?

answer

Correct Loss of control over national monetary policy

question

The _____ refers to a trade pact among Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, which began in the early 1960s but collapsed in 1969 due to war.

answer

Correct Central American Common Market

question

Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone?

answer

Correct The implied loss of national sovereignty to the European Central Bank

question

_____ occurs when high-cost domestic producers are replaced by low-cost producers within a free trade area.

answer

Correct Trade creation

question

Which of the following is true about how the euro will impact the pan-European capital market?

answer

Correct It will increase efficiency with which investment funds are allocated.

question

Which of the following is true about the European Commission?

answer

Correct The European Union's competition commissioner has been gaining influence as the chief regulator of competition policy in the member-nations of the European Union.

question

Which of the following levels of economic integration involves the use of a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy?

answer

Correct Economic union

question

Which of the following entails a closer economic integration and cooperation than a common market?

answer

Correct Economic union

question

Which of the following is an issue confronting the North American Free Trade Agreement?

answer

Correct Expanding the membership of the agreement

question

The _____ is composed of one representative from the government of each member-state, and whose membership depends on the topic being discussed.

answer

Correct European Council

question

Which of the following is true of the Single European Act?

answer

Correct The act provided the impetus for the restructuring of substantial sections of European industry.

question

Which of the following comprises the euro zone?

answer

Correct The 17 member nations who use euro as its currency

question

Which of the following is true of the Asia-Pacific Economic Cooperation (APEC)?

answer

Correct It was founded in 1990 at the suggestion of Australia.

question

An argument against the North American Free Trade Agreement centered on the fear that ratification would result in:

answer

Correct mass exodus of jobs from the United States into Mexico.

question

The European Council considered to be the ultimate controlling authority within the European Union (EU) because:

answer

Correct draft legislation from the European Commission can become EU law only if the council agrees.

question

The _____ is responsible for proposing European Union legislation, implementing it, and monitoring compliance with European Union laws by member states.

answer

Correct European Commission

question

Which of the following is a consequence of the implementation of the North American Free Trade Agreement?

answer

Correct Some U.S. and Canadian firms would move production to Mexico to take advantage of lower labor costs.

question

Which of the following led to the collapse of the Central American Common Market in 1969?

answer

Correct War between Honduras and El Salvador after a riot at a soccer match between teams from the two countries

question

Which of the following is true of regional economic integration?

answer

Correct By creating a single market, the EU aimed to lower the price for goods and services across the bloc.

question

Which of the following is true of the Treaty of Lisbon that was signed in 2007?

answer

Correct It created the position of the president of the European Council.

question

The _____ refers to a 1969 agreement among Bolivia, Chile, Ecuador, Colombia, and Peru to establish a customs union.

answer

Correct Andean Pact

question

In the context of international labor relations, which of the following is a concern of organized labor?

answer

Correct An international business keeps highly skilled tasks in its home country and farms out only low-skilled tasks to foreign plants.

question

Which of the following is an advantage of an ethnocentric staffing policy?

answer

Correct It helps transfer core competencies to a foreign operation.

question

According to the survey undertaken by Towers Perrin, which of the following countries provides the highest pay to HR executives?

answer

Correct The United States

question

In firms following a(n) _____ staffing policy, the lack of managers' mobility among national operations implies that the pay for expatriates should be kept country specific.

answer

Correct polycentric

question

Firms that use an ethnocentric staffing policy consider it to be:

answer

Correct the best way to maintain a unified corporate culture.

question

Which of the following is a disadvantage of adopting a geocentric staffing approach?

answer

Correct Training and relocation costs increase when transferring managers from country to country.

question

A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.

answer

Correct geocentric

question

Which of the following staffing policies relies extensively on the use of expatriate managers?

answer

Correct Ethnocentric staffing policy

question

A firm's ability to reduce its use of expatriates may be limited, particularly if it is pursuing a(n) _____ staffing policy.

answer

Correct geocentric

question

Broadly speaking, a(n) _____ staffing approach is compatible with an international strategy.

answer

Correct ethnocentric

question

Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?

answer

Correct The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.

question

A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

answer

Correct common market

question

Which of the following is true with regard to establishment of the euro?

answer

Correct It required participating national governments to give up control over monetary policy.

question

Which of the following are the two impediments to regional economic integration?

answer

Correct Costs and national sovereignty

question

Which of the following is true of the euro since its establishment in 1999?

answer

Correct The euro has had a volatile trading history against the U.S. dollar.

question

Which of the following is true of the Andean Pact during the mid-1980s?

answer

Correct The Pact had failed to achieve the objective of a common external tariff.

question

The _____ proposed that all impediments to the formation of a single market be eliminated by December 31, 1992. The result was the Single European Act.

answer

Correct Delors Commission

question

_____ are the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements.

answer

Correct Free trade agreements

question

_____ refers to the pact among Argentina, Brazil, Paraguay, and Uruguay that originated in 1988 to establish a free trade area.

answer

Correct Mercosur

question

Which of the following is the economic level corresponding to the least integration?

answer

Correct A free trade area

question

The _____, which has 754 members as of 2012, is directly elected by the populations of the member-states.

answer

Correct European Parliament

question

The _____ refers to an attempt to establish a free trade area between Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

answer

Correct Association of Southeast Asian Nations

question

_____ occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area?

answer

Correct Trade creation

question

The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as _____.

answer

Correct Central American Free Trade Agreement

question

Which of the following organizations, established in 1951, was the forerunner of the European Union?

answer

Correct European Coal and Steel Community

question

Which of the following is true of the Court of Justice?

answer

Correct It is the supreme appeals court for European Union law.

question

Which of the following is true with regard to an economic union?

answer

Correct It involves the free flow of products and factors of production among member-countries.

question

Which of the following is a feature of a common market?

answer

Correct Allows free movement of factors of production between member nations

question

Which of the following was a change proposed by the Single European Act?

answer

Correct Apply the principle of "mutual recognition" to product standards

question

Which of the following countries has adopted the euro as its currency?

answer

Correct France

question

A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.

answer

Correct free trade area

question

Which of the following is the aim of the Central America Free Trade Agreement?

answer

Correct Lowering of trade barriers between the United States and the Central American Common Market countries

question

Which of the following is true of the East African Community (EAC)?

answer

Correct Their program includes cooperation on immigration, road and telecommunication networks, investment, and capital markets.

question

Which of the following changes were proposed by the Single European Act?

answer

Correct Open public procurement to nonnational suppliers

question

Which of the following is a benefit of adopting the euro?

answer

Correct The adoption of a common currency makes it easier to compare prices across Europe.

question

A key advantage of adopting the euro is that it:

answer

Correct lowers foreign exchange and hedging costs in Europe.

question

_____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

answer

Correct Regional economic integration

question

The European Community became the European Union in 1993 following the ratification of the _____.

answer

Correct Maastricht Treaty

question

Which of the following is a factor that resulted in the establishment of the European Union (EU)?

answer

Correct The devastation of Western Europe during two world wars and the desire for a lasting peace

question

Which of the following is true of the provisions of the North American Free Trade Agreement?

answer

Correct It seeks the removal of most barriers on the cross-border flow of services.

question

Suppose the country of Ceria and Lithinia imposed tariffs on imports from all countries, and then they set up a free trade area, scrapping all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Now, Ceria begins to import sugar from Lithinia. However, Ceria had previously been importing sugar from another country, Cadnia, which produced sugar more cheaply than Ceria or Lithinia. This is known as _____.

answer

Correct trade diversion

question

Which of the following principles did the Single European Act propose to apply to product standards?

answer

Correct The principle of "mutual recognition"

question

Which of the following is true regarding the establishment of the euro?

answer

Correct By adopting the euro, the European Union has created the second most widely traded currency in the world after that of the U.S. dollar.

question

Which of the following supports the economic case for regional economic integration?

answer

Correct Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

question

The right of foreign truckers to pick up and deliver goods within another member-state's borders is known as _____.

answer

Correct cabotage

question

Which of the following is true of the political case for regional economic integration?

answer

Correct Countries can enhance their political weight in the world by grouping their economies.

question

Which of the following is true about the European Parliament?

answer

Correct It is directly elected by the populations of the member-states.

question

Which of the following institutions has a monopoly in proposing European Union legislation?

answer

Correct European Commission

question

Which of the following is considered to be the ultimate controlling authority within the European Union?

answer

Correct European Council

question

Which of the following is true of Alexander Yeats' criticism of the Andean Pact?

answer

Correct He pointed out that Mercosur countries were insulated from outside competition by tariffs that run as high as 70 percent of value.

question

The _____ refers to a permanent bailout fund, worth about €500 billion, set up by the euro zone nations to restore confidence in the euro.

answer

Correct European Stability Mechanism

question

Which of the following is an example of concerns over national sovereignty acting as an impediment to regional economic integration?

answer

Correct Great Britain refusing to adopt the common currency of the European Union, the euro

question

Which of the following are significant trade blocs in Europe?

answer

Correct The European Union and the European Free Trade Association

question

Concerns 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.

answer

Correct national sovereignty

question

The movement toward regional economic integration has been most successful in _____.

answer

Correct Europe

question

The Andean Community now operates as a _____.

answer

Correct customs union

question

Which of the following is true with regard to regional economic integration?

answer

Correct Regional economic integration is good for consumers because it lowers prices.

question

Which of the following is true of the theoretically ideal free trade area?

answer

Correct No discriminatory tariffs, quotas, subsidies, or administrative impediments are allowed to distort trade between members.

BUS 280 q.9 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards