Question 1

The Andean Community now operates as a customs union.

Accepted Answer

A) True 
 B)False

Question 2

Since the number of trade groups in the African continent is impressive, progress toward the establishment of meaningful trade blocs has been fast.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  Command economy
B)  Customs union
C)  Efficient market
D)  Free trade area
E)  Economic unionF) B) and D)
G) C) and D)

Question 4

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

Accepted Answer

A)  Absence of a common external trade policy with regard to nonmembers
B)  Free movement of factors of production between member nations
C)  Establishment of barriers to the free flow of goods between member nations
D)  Lack of administrative machinery to oversee trade relations with nonmembers
E)  Mandatory use of a common currency among member nationsF) A) and B)
G) C) and D)

Question 5

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

Accepted Answer

A)  The judges are required to act as representatives of national interests.
B)  It comprises several judges from a few selected countries.
C)  It is the supreme appeals court for European Union law.
D)  A member country cannot bring another member country to this court.
E)  Member countries cannot bring the commission or the council to this court.F) A) and C)
G) C) and D)

Question 6

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

Accepted Answer

A)  Loss of control over national monetary policy
B)  Increase in the cost of capital
C)  Reduction in the liquidity of capital markets
D)  Reduction of price differentials within the euro zone
E)  Loss of investment options open to both individuals and institutionsF) C) and D)
G) B) and E)

Question 7

Which of the following 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

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

Accepted Answer

A)  It does not allow financial institutions unrestricted access to the Mexican market.
B)  It abolishes special treatment (protection)  given to Mexican energy and railway industries.
C)  It allows lowering of national environmental standards to lure investment.
D)  It seeks the removal of most barriers on the cross-border flow of services.
E)  It does not deal with the protection of intellectual property rights.F) A) and E)
G) B) and C)

Question 9

What are the two political factors that led to the creation of the European Union?

Accepted Answer

The European Union (EU) is the product o...

Question 10

The European Commission is the ultimate controlling authority within the European Union because draft legislation from the commission can become EU law only if the council agrees.

Accepted Answer

A) True 
 B)False

Question 11

In a free trade area, all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.

Accepted Answer

A) True 
 B)False

Question 12

Briefly describe the concept of regional economic integration.

Accepted Answer

By regional economic integration we mean...

Question 13

As with free trade in general, regional economic integration creates gain for consumers, but it can be challenging for some producers.

Accepted Answer

A) True 
 B)False

Question 14

What were the objectives of the Single European Act?

Accepted Answer

The purpose of the Single European Act w...

Question 15

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

Accepted Answer

A)  The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
B)  Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
C)  Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
D)  The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
E)  There is no consensus on trade policies between Brazil and Argentina.F) D) and E)
G) A) and B)

Question 16

With the signing of the Treaty of Rome in 1957, the European Free Trade Association was established.

Accepted Answer

A) True 
 B)False

Question 17

Establishment of the euro required participating national governments to:

Accepted Answer

A)  have a sound fiscal situation.
B)  have stable exchange rates.
C)  be democratic in nature.
D)  give up control over monetary policy.
E)  have a high degree of price stability.F) B) and E)
G) D) and E)

Question 18

In a customs union, a common currency is adopted.

Accepted Answer

A) True 
 B)False

Question 19

How is a common market different from an economic union?

Accepted Answer

A common market has no barriers to trade...

Question 20

Describe the Central American Common Market and the Central America Free Trade Agreement.

Accepted Answer

In the early 1960s, Costa Rica, El Salva...

Exam 9: Regional Economic Integration

The European Commission is the ultimate controlling authority within the European Union because draft legislation from the commission can become EU law only if the council agrees.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Describe the Central American Common Market and the Central America Free Trade Agreement.

Correct AnswerverifiedIn the early 1960s, Costa Rica, El Salva...View AnswerShow Answer

How is a common market different from an economic union?

Correct AnswerverifiedA common market has no barriers to trade...View AnswerShow Answer

With the signing of the Treaty of Rome in 1957, the European Free Trade Association was established.

Correct AnswerverifiedShow Answer

What are the two political factors that led to the creation of the European Union?

Correct AnswerverifiedThe European Union (EU) is the product o...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Establishment of the euro required participating national governments to:

Correct AnswerverifiedShow Answer

Since the number of trade groups in the African continent is impressive, progress toward the establishment of meaningful trade blocs has been fast.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a free trade area, all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What were the objectives of the Single European Act?

Correct AnswerverifiedThe purpose of the Single European Act w...View AnswerShow Answer

In a customs union, a common currency is adopted.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As with free trade in general, regional economic integration creates gain for consumers, but it can be challenging for some producers.

Correct AnswerverifiedShow Answer

Briefly describe the concept of regional economic integration.

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

The Andean Community now operates as a customs union.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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In the early 1960s, Costa Rica, El Salva...
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A common market has no barriers to trade...
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Correct Answer
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Correct Answer
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The European Union (EU) is the product o...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The purpose of the Single European Act w...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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By regional economic integration we mean...
View Answer

Correct Answer
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Correct Answer
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