Question 1

The Caribbean Single Market and Economy is modeled after

Accepted Answer

A)   the EU's single market.
B)   a planned economy.
C)   a command economy.
D)   the U.S. free trade area.
E)   CAFTA.F) B) and C)
G) B) and E)

Question 2

The European Union is considered a(n)  ________ even though not all members have adopted a common currency.

Accepted Answer

A)   planned economy
B)   free trade area
C)   economic union
D)   customs union
E)   common marketF) A) and C)
G) C) and D)

Question 3

________ is 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.

Accepted Answer

A)   Central American Common Market
B)   Free Trade Area of the Americas
C)   Caribbean Single Market and Economy
D)   Mercosur
E)   CARICOMF) B) and C)
G) A) and E)

Question 4

________ is an association of English-speaking Caribbean states that are attempting to establish a customs union.

Accepted Answer

A)   CARICOM
B)   Central American Free Trade Agreement
C)   Central American Common Market
D)   Free Trade Area of the Americas
E)   Caribbean Single Market and EconomyF) A) and B)
G) All of the above

Question 5

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

Accepted Answer

A)   Asia-Pacific Economic Cooperation
B)   South Asian Association for Regional Cooperation
C)   Asian Clearing Union
D)   Association of Southeast Asian Nations
E)   Maastricht TreatyF) A) and B)
G) C) and D)

Question 6

A political union creates a central source for coordinating the economic, social, and foreign policy of member states.

Accepted Answer

A) True 
 B)False

Question 7

What was a change proposed by the Single European Act?

Accepted Answer

A)   establish frontier controls among European Community countries
B)   increase the resources required for complying with trade bureaucracy
C)   place barriers to competition in the retail banking and insurance businesses
D)   apply the principle of "mutual recognition" to product standards
E)   reduce costs directly by not allowing lower-cost suppliers into national economiesF) A) and D)
G) A) and C)

Question 8

ASEAN has two objectives: foster free trade among member countries and achieve cooperation in ________ policies.

Accepted Answer

A)   political
B)   religious
C)   industrial
D)   financial
E)   agriculturalF) None of the above
G) C) and E)

Question 9

Briefly describe the benefits of the euro.

Accepted Answer

Europeans decided to establish a single ...

Question 10

The ________ has a monopoly in proposing European Union legislation because the council cannot legislate without its permission.

Accepted Answer

A)   Council of the European Union
B)   Court of Justice
C)   European Commission
D)   European Parliament
E)   European CommunityF) A) and D)
G) C) and E)

Question 11

The Central American Free Trade Agreement is an agreement to lower trade barriers between six nations and

Accepted Answer

A)   the United States.
B)   the EU.
C)   France.
D)   the Philippines.
E)   Germany.F) D) and E)
G) A) and B)

Question 12

What is one main impediment to regional economic integration?

Accepted Answer

A)   identical political ideologies
B)   reduced immigration
C)   loss of national sovereignty
D)   lack of popular support
E)   difficult international policiesF) None of the above
G) C) and E)

Question 13

After the creation of a free trade area involving five nations, higher cost external fabric producers were replaced by lower-cost external fabric producers within the free trade area. This is known as

Accepted Answer

A)   trade creation.
B)   strategic pricing.
C)   synergy.
D)   trade diversion.
E)   protectionism.F) B) and E)
G) A) and B)

Question 14

Briefly describe the concept of regional economic integration.

Accepted Answer

By regional economic integration we mean...

Question 15

The European Union was established to help Europe build up its armed defenses in response to World War I.

Accepted Answer

A) True 
 B)False

Question 16

The practices of the European Central Bank are similar to the

Accepted Answer

A)   United States Federal Reserve.
B)   World Trade Organization.
C)   European Parliament.
D)   United Nations.
E)   International Monetary Fund.F) All of the above
G) B) and E)

Question 17

________ is a pact that originated in 1988 to establish a free trade area now including Argentina, Brazil, Paraguay, and Uruguay.

Accepted Answer

A)   ASEAN
B)   NAFTA
C)   Mercosur
D)   CARICOM
E)   CAFTAF) C) and D)
G) A) and B)

Question 18

The European Economic Community became the European Union in 1993 following the ratification of the

Accepted Answer

A)   Maastricht Treaty.
B)   Warsaw Pact.
C)   Treaty of Rome.
D)   Single European Act.
E)   Lisbon Treaty.F) A) and B)
G) C) and D)

Question 19

In a(n)  ________, a group of countries are committed to removing all barriers to the free flow of goods and services between each other but pursue independent external trade policies.

Accepted Answer

A)   free trade area
B)   command economy
C)   efficient market
D)   foreign exchange market
E)   location economyF) A) and B)
G) A) and E)

Question 20

Since it was introduced in 1999, how has the euro compared to the U.S. dollar?

Accepted Answer

A)   The value of the euro has been stable against the U.S. dollar.
B)   The euro's value has steadily appreciated against the U.S. dollar.
C)   The euro's value initially appreciated and then steadily depreciated against the U.S. dollar.
D)   The euro has had a volatile trading history against the U.S. dollar.
E)   The value of the euro rapidly surpassed, and continues to appreciate against the U.S. dollar.F) A) and B)
G) A) and E)

Exam 9: Regional Economic Integration

The European Union was established to help Europe build up its armed defenses in response to World War I.

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

Correct AnswerverifiedShow Answer

A political union creates a central source for coordinating the economic, social, and foreign policy of member states.

Correct AnswerverifiedShow Answer

In a(n) ________, a group of countries are committed to removing all barriers to the free flow of goods and services between each other but pursue independent external trade policies.

Correct AnswerverifiedShow Answer

The Caribbean Single Market and Economy is modeled after

Correct AnswerverifiedShow Answer

What was a change proposed by the Single European Act?

Correct AnswerverifiedShow Answer

The practices of the European Central Bank are similar to the

Correct AnswerverifiedShow Answer

Briefly describe the benefits of the euro.

Correct AnswerverifiedEuropeans decided to establish a single ...View AnswerShow Answer

The European Union is considered a(n) ________ even though not all members have adopted a common currency.

Correct AnswerverifiedShow Answer

________ is an association of English-speaking Caribbean states that are attempting to establish a customs union.

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Since it was introduced in 1999, how has the euro compared to the U.S. dollar?

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The European Economic Community became the European Union in 1993 following the ratification of the

Correct AnswerverifiedShow Answer

The Central American Free Trade Agreement is an agreement to lower trade barriers between six nations and

Correct AnswerverifiedShow Answer

________ is 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.

Correct AnswerverifiedShow Answer

ASEAN has two objectives: foster free trade among member countries and achieve cooperation in ________ policies.

Correct AnswerverifiedShow Answer

The ________ has a monopoly in proposing European Union legislation because the council cannot legislate without its permission.

Correct AnswerverifiedShow Answer

After the creation of a free trade area involving five nations, higher cost external fabric producers were replaced by lower-cost external fabric producers within the free trade area. This is known as

Correct AnswerverifiedShow Answer

________ is a pact that originated in 1988 to establish a free trade area now including Argentina, Brazil, Paraguay, and Uruguay.

Correct AnswerverifiedShow Answer

What is one main impediment to regional economic integration?

Correct AnswerverifiedShow Answer

Briefly describe the concept of regional economic integration.

Correct AnswerverifiedBy regional economic integration we mean...View AnswerShow Answer

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Europeans decided to establish a single ...
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By regional economic integration we mean...
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