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Copyright?2020McGraw-HillEducation.Allrightsreserved.
NoreproductionordistributionwithoutthepriorwrittenonsentofMcGraw-HillEducation.
InternationalMarketing,18e(Cateora)
Chapter10Europe,Africa,andtheMiddleEast
1)Multinationalmarketregionsarethosegroupsofcountriesthatseekmutualeconomicbenefitfromreducinginterregionaltradeandtariffbarriers.
Answer:TRUE
Explanation:Multinationalmarketregionsarethosegroupsofcountriesthatseekmutualeconomicbenefitfromreducinginterregionaltradeandtariffbarriers.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
2)AnimportantobjectiveofthemembercountriesoftheUnitedNationsisbringingaboutmutualeconomicdevelopment.
Answer:TRUE
Explanation:Partoftheeffortsofthe193membercountriesintheUnitedNationsincludesmutualeconomicdevelopment.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
3)TheWTOprimarypurposeismakingtrademoreprofitableforemergingeconomies.
Answer:FALSE
Explanation:TheWorldTradeOrganization,withits164membersandover20observers,iswhollydedicatedtomakingtradeamongnationsmoreefficient.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
4)Nationswithcomplementaryeconomicbasesaremostlikelytoencounterfrictionsinthedevelopmentandoperationofacommonmarketunit.
Answer:FALSE
Explanation:Nationswithcomplementaryeconomicbasesareleastlikelytoencounterfrictionsinthedevelopmentandoperationofacommonmarketunit.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
5)TheimportanceofpoliticalunitytofullyachieveallthebenefitsofeconomicintegrationdroveEuropeancountriestoformtheWorldTradeOrganization(WTO).
Answer:FALSE
Explanation:TheimportanceofpoliticalunitytofullyachieveallthebenefitsofeconomicintegrationhasdrivenEuropeancountriestoformtheUnion(EU).
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
6)Themostbasiclevelofeconomicintegrationandcooperationisthegeographicallocalfederation(GLF).
Answer:FALSE
Explanation:Themostbasiclevelofeconomicintegrationandcooperationistheregionalcooperationfordevelopment(RCD).
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
7)Atthemostgenerallevel,theWTOrepresentsthemostimportantandcomprehensivetradeagreementinhistory.
Answer:TRUE
Explanation:Atthemostgenerallevel,theWorldTradeOrganizationrepresentsthemostimportantandcomprehensivetradeagreementinhistory.However,beyondtheWTO,multinationalmarketgroupstakeseveralotherforms,varyingsignificantlyinthedegreeofcooperation,dependence,andinterrelationshipamongparticipatingnations.
Difficulty:1Easy
Topic:TheWorldTradingSystem,GATT,andtheWTO
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
8)Afreetradearea(FTA)providesitsmemberswithamassmarketwithoutbarrierstoimpedetheflowofgoodsandservices.
Answer:TRUE
Explanation:Afreetradeareaprovidesitsmemberswithamassmarketwithoutbarrierstoimpedetheflowofgoodsandservices.Itisanagreementbetweentwoormorecountriestoreduceoreliminatecustomsdutiesandnontarifftradebarriersamongpartnercountrieswhilemembersmaintainindividualtariffschedulesforexternalcountries.
Difficulty:1Easy
Topic:TradePolicyandGovernmentInterventioninInternationalTrade
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
9)Acustomsunionisthemostfullyintegratedformofregionalcooperation.
Answer:FALSE
Explanation:Apoliticalunionisthemostfullyintegratedformofregionalcooperation.Itinvolvescompletepoliticalandeconomicintegration,eithervoluntaryorenforced.Whereas,acustomsunionenjoysthefreetradearea'sreducedoreliminatedinternaltariffsandaddsacommonexternaltariffonproductsimportedfromcountriesoutsidetheunion.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
10)TheblueprintfortheEuropeanUnionbeganwiththeTreatyofRomein1957.
Answer:TRUE
Explanation:TheTreatyofRomeestablishedtheEuropeanEconomicCommunity(EEC).TheEuropeanUnionisanextensionoftheEEC.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
11)Acommonwealthofnationsisanorganizationprovidingforthestrongestpossibleeconomicintegrationrelationship.
Answer:FALSE
Explanation:Acommonwealthofnationsisavoluntaryorganizationprovidingfortheloosestpossiblerelationshipthatcanbeclassifiedaseconomicintegration.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
12)TheEuropeanUnionwascreatedwhenthe12nationsoftheEuropeanCommunityratifiedtheMaastrichtTreaty.
Answer:TRUE
Explanation:TheEuropeanUnionwascreateduponratificationoftheMaastrichtTreatyby12nationsoftheEuropeanCommunity.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
13)TheCommonwealthofIndependentStates(CIS)wasformedbyBritainbecauseitdidnotwanttojointheEuropeanEconomicCommunity(EEC).
Answer:FALSE
Explanation:TheCommonwealthofIndependentStates(CIS)wasformedbytherepublicsoftheformerSovietUnion.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-02Patternsofinternationalcooperation.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
14)Historically,standardshavebeenusedtoeffectivelyincreasemarketaccess,suchasthesaleofGermanbeerinItaly.
Answer:FALSE
Explanation:Historically,standardshavebeenusedtoeffectivelylimitmarketaccess.Restrictivestandardshavekeptcompetingproducts,whetherfromotherEuropeancountriesorelsewhere,outoftheirrespectivemarkets.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-03TheevolutionoftheEuropeanUnion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
15)Inlinewithitsgoalofenlargement,tennewcountriesjoinedtheEuropeanUnionin2004followedbyBulgariaandRomaniain2007.
Answer:TRUE
Explanation:TheprocessofenlargementwasforalongtimethemostimportantitemontheEU'sagenda.Tennewcountrieswereaddedin2004,someaheadofschedule.BulgariaandRomaniaenteredasplannedin2007.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-03TheevolutionoftheEuropeanUnion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
16)TheCouncilofMinistersoftheEuropeanUnioncanenactintolawallproposalsinvolvingchangesintaxratesonproductsandservicesbymajorityvote.
Answer:FALSE
Explanation:TheCouncilcanenactintolawallproposalsbymajorityvoteexceptforchangesintaxratesonproductsandservices,whichrequireunanimousvote.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-03TheevolutionoftheEuropeanUnion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
17)ThedecisionsoftheEuropeanCourtofJusticearenotfinal,butcanbeappealedinnationalcourts.
Answer:FALSE
Explanation:TheEuropeanCourtofJustice(ECJ)istheEuropeanUnion'sSupremeCourt.ItisresponsibleforchallenginganymeasuresincompatiblewiththeTreatyofRomeandforpassingjudgment,attherequestofanationalcourt,ontheinterpretationorvalidityofpointsofEuropeanUnionlaw.Thecourt'sdecisionsarefinalandcannotbeappealedinnationalcourts.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-03TheevolutionoftheEuropeanUnion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
18)IntheAmsterdamTreaty,theEuropeanUnionagreedtoaccommodatethechangesbroughtaboutbythemonetaryunionandtheadmissionofnewmembers.
Answer:TRUE
Explanation:TheAmsterdamTreatyincreasestheauthorityoftheinstitutionsoftheEuropeanUnionandisdesignedtoaccommodatethechangesbroughtaboutbythemonetaryunionandtheadmissionofnewmembers.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-03TheevolutionoftheEuropeanUnion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
19)AllthreeBalticstatesstartedoffwiththesamelegacyofefficientindustryandAmerican-stylecapitalisteconomies.
Answer:FALSE
Explanation:TheBalticstatesstartedoffwithroughlythesamelegacyofinefficientindustryandSoviet-stylecommandeconomies.
Difficulty:1Easy
Topic:OverviewofRegionalEconomicIntegrationanditsDifferentLevels
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
20)EuropeandAsiahaveatradegroupthathasemergedandpersistedsincethedissolutionoftheSovietUnioncalledtheCommonwealthofIndependentStates.
Answer:TRUE
Explanation:WithintheEuropeanregionistheCommonwealthofIndependentStates.Newanduntested,itisacoalitionof12formerUSSRrepublics.In2009,GeorgiaresignedfromtheCommonwealth.
Difficulty:1Easy
Topic:OverviewofRegionalEconomicIntegrationanditsDifferentLevels
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
21)TheCommonwealthofIndependentStatesisalooseeconomicandpoliticalalliancewithopenbordersbutnocentralgovernment.
Answer:TRUE
Explanation:TheCISisalooseeconomicandpoliticalalliancewithopenbordersbutnocentralgovernment.
Difficulty:1Easy
Topic:OverviewofRegionalEconomicIntegrationanditsDifferentLevels
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
22)ThefirstSovietrepublicstodeclareindependenceweretheBalticstates.
Answer:TRUE
Explanation:TheseriesofeventsaftertheabortedcoupagainstMikhailGorbachevledtothecompletedissolutionoftheUSSR.ThefirstSovietrepublicstodeclareindependenceweretheBalticstates,whichquicklygainedrecognitionbyseveralWesternnations.
Difficulty:1Easy
Topic:OverviewofRegionalEconomicIntegrationanditsDifferentLevels
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
23)EconomicgrowthamongAfricancountrieshasbeenonthedownswingforthepastseveralyears.
Answer:FALSE
Explanation:Inpartstimulatedbyincreasingforeigndirectinvestment,particularlyfromChinaforinfrastructureprojects,prospectsforenterprisesouthoftheSaharaareontheupswing.Despiteglobaleconomicproblemsandlocalpoliticalandenvironmentaldisruptions,growthamongAfricancountrieshasbeenpickingupnicelyinthepastfewyears.
Difficulty:1Easy
Topic:ChallengesFacingAfrican,MiddleEastern,andSouthAmericanCountries
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
24)TheSouthernAfricanDevelopmentCommunityisthemostadvancedandviableofAfrica'sregionalorganizations.
Answer:TRUE
Explanation:TheSouthernAfricanDevelopmentCommunityisthemostadvancedandviableofAfrica'sregionalorganizations.Its15membersencompassalandmassofsevenmillionsquarekilometerscontainingabundantnaturalresourcesandapopulationofmorethan250million.
Difficulty:1Easy
Topic:OverviewofRegionalEconomicIntegrationanditsDifferentLevels
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
25)Iran,Pakistan,andTurkey,formerlytheRegionalCooperationforDevelopment(RCD),haverenamedtheirregionalgrouptheEconomicCooperationOrganization(ECO).
Answer:TRUE
Explanation:Iran,Pakistan,andTurkey,formerlytheRegionalCooperationforDevelopment(RCD),haverenamedtheirregionalgrouptheEconomicCooperationOrganization(ECO).
Difficulty:1Easy
Topic:ChallengesFacingAfrican,MiddleEastern,andSouthAmericanCountries
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
26)TheArabstatesonthePersianGulf,Egypt,andMoroccoworkedoutanagreementonanArabFreeTradeArea,sometimescalledtheGreaterArabFreeTradeArea(GAFTA).
Answer:TRUE
Explanation:TheArabstatesonthePersianGulf,Egypt,andMoroccoworkedoutanagreementonanArabFreeTradeArea,sometimescalledtheGreaterArabFreeTradeArea(GAFTA).
Difficulty:1Easy
Topic:ChallengesFacingAfrican,MiddleEastern,andSouthAmericanCountries
LearningObjective:10-04EvolvingpatternsoftradeaseasternEuropeandtheformerSovietstatesembracefree-marketsystems.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
27)Theinitialaimofamultinationalmarketistoprotectbusinessesthatoperatewithinitsborders.
Answer:TRUE
Explanation:Theinitialaimofamultinationalmarketistoprotectbusinessesthatoperatewithinitsborders.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-05Strategicimplicationsformarketingintheregion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
28)Withtheadoptionoftheeuro,pricedifferentialsaremucheasiertospot,andEUconsumerscansearchforthebestbargainsinbrand-nameproductsmoreeasily.
Answer:TRUE
Explanation:Withtheadoptionoftheeuro,pricedifferentialsaremucheasiertospot,andtheconsumercansearchforthebestbargainsinbrand-nameproductsmoreeasily.
Difficulty:1Easy
Topic:WesternEurope'sMarketplaceintheWorldEconomy
LearningObjective:10-06ThesizeandnatureofmarketingopportunitiesintheEuropean/African/MiddleEastregions.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
29)Groupsofcountriesthatseekmutualeconomicbenefitfromreducinginterregionaltradeandtariffbarriersarecalled
A)multilateraleconomicassociations.
B)cartels.
C)multinationalmarketregions.
D)tradeassociations.
E)politicalandculturalassociations.
Answer:C
Explanation:Multinationalmarketregionsarethosegroupsofcountriesthatseekmutualeconomicbenefitfromreducinginterregionaltradeandtariffbarriers.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
30)Multinationalmarketgroupsform
A)alargeorganizationthatpromotesharmonybymutualagreementtoacommonpeacetreaty.
B)largemarketsthatprovidepotentiallysignificantopportunitiesforinternationalbusiness.
C)aconglomeratethatseekstoundertakeforeigntradingventuresasonecompany.
D)anonprofitentitythatworkstogethertoaidthedevelopmentofunderdevelopedcountries.
E)regionaltradingblocswithouttraderestrictionsinternallyandbordersrestrictedfromoutsiders.
Answer:B
Explanation:Multinationalmarketgroupsformlargemarketsthatprovidepotentiallysignificantopportunitiesforinternationalbusiness.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
31)ItwasnotuntilthissinglemarketwasestablishedthattheUnitedStates,Japan,andothercountriesgaveseriousthoughttocreatingotheralliances.Whatisbeingreferredtohere?
A)theEuropeanCommission
B)theEuropeanEconomicCommunity
C)theOrganizationforSecurityandCo-operationinEurope
D)theAsia-PacificEconomicCooperation
E)theEuropeanCommunity
Answer:B
Explanation:FollowingthesuccessoftheEuropeanSteelandCoalCommunity,aglobaleconomicrevolutionbeganin1958whentheEuropeanEconomicCommunitywasratifiedandEuropetookthestepthatwouldultimatelyleadtothepresent-dayEuropeanUnion(EU).ItwasnotuntilthissinglemarketwasestablishedthattheUnitedStates,Japan,andothercountriesgaveseriousthoughttocreatingotheralliances.
Difficulty:1Easy
Topic:HistoryandImplicationsRegionalEconomicAgreements
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
32)TheWorldTradeOrganizationiswhollydedicatedto
A)expandingcapitalism.
B)eliminatinglanguagebarriersintrade.
C)havingfreeandopennationalborders.
D)enforcinginternationalanti-briberylaws.
E)improvingtheefficiencyoftradeamongnations.
Answer:E
Explanation:TheWorldTradeOrganization,withits160membersand24observers,iswhollydedicatedtomakingtradeamongnationsmoreefficient.
Difficulty:1Easy
Topic:TheWorldTradingSystem,GATT,andtheWTO
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
33)Everytypeofeconomicunionsharesthedevelopmentandenlargementofmarketopportunitiesasabasicorientation.Whatbestdescribestheprimarywaymarketopportunitiesareenlargedbyeconomicunions?
A)preferentialtarifftreatmentforparticipatingmembers
B)useofembargostoeliminaterivalcompetition
C)formulationofcartels
D)questforeconomicdominancethroughboycottsofrivals
E)movementtowardacommonlanguageasameanstoovercomingeconomichurdles
Answer:A
Explanation:Usually,marketsareenlargedthroughpreferentialtarifftreatmentforparticipatingmembers,commontariffbarriersagainstoutsiders,orboth.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
34)Nationswithcomplementaryeconomicbasesareleastlikelyto
A)developadistinctivemonetarysystem.
B)allowindividualdifferencestobeoutweighedbythetotalbenefitofeconomicintegration.
C)experienceinternaleconomicdevelopment.
D)achieveenlargementofmarketopportunitiesthroughpreferentialtarifftreatment.
E)encounterfrictionsinthedevelopmentandoperationofacommonmarketunit.
Answer:E
Explanation:Nationswithcomplementaryeconomicbasesareleastlikelytoencounterfrictionsinthedevelopmentandoperationofacommonmarketunit.However,foraneconomicuniontosurvive,itmusthaveagreementsandmechanismsinplacetosettleeconomicdisputes.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
35)Whatisarequisiteforthesurvivalofanyeconomicunion?
A)avoidingpotentiallysignificantopportunitiesforinternationalbusiness
B)havingagreementsandmechanismsinplaceinordertosettleeconomicdisputes
C)includingintotheunioncountrieswithdiverseeconomies,distinctivemonetarysystems,developedagriculturalbases,anddifferentnaturalresources
D)establishingofacomprehensiveagricultureandeconomicpolicy
E)ensuringbiasedtreatmentofgoodsproducedwithintheunion
Answer:B
Explanation:Foraneconomicuniontosurvive,itmusthaveagreementsandmechanismsinplacetosettleeconomicdisputes.Inaddition,thetotalbenefitofeconomicintegrationmustoutweighindividualdifferencesthataresuretoariseasmembercountriesadjusttonewtraderelationships.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
36)Whatisabasicrequisiteforthedevelopmentofasupranationalmarketarrangement?
A)politicalamenabilityamongcountries
B)businessstrategysharing
C)adoptionofcommonculturalpractices
D)protectionofthemarketbyexercisingtariffsandboycotts
E)adesiretomaintainstatesovereignty
Answer:A
Explanation:Politicalamenabilityamongcountriesisabasicrequisiteforthedevelopmentofasupranationalmarketarrangement.Participatingcountriesmusthavecomparableaspirationsandgeneralcompatibilitybeforesurrenderinganypartoftheirnationalsovereignty.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
37)Withrespecttothepoliticalfactorsthataffectsupranationalmarkets,________isoneofthemostcherishedpossessionsofanynation.
A)atwo-partysystem
B)athree-partysystem
C)statefederalism
D)statesovereignty
E)astrongmiddleclass
Answer:D
Explanation:Statesovereigntyisoneofthemostcherishedpossessionsofanynationandisrelinquishedonlyforapromiseofsignificantimprovementofthenationalpositionthroughcooperation.
Difficulty:1Easy
Topic:EconomicandPoliticalArgumentsSurroundingRegionalEconomicIntegration
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
38)WhatisoneofthemultilateralfreetradeagreementssignedbytheUnitedStates?
A)CETA
B)NAFTA
C)NATO
D)MERCOSUR
E)LAFTA
Answer:B
Explanation:TheUnitedStateshasbilateralfreetradeagreementsinprogressandapprovedwithseveralnationsinadditiontomultilateralagreementssuchasNAFTAandDR-CAFTA(DominicanRepublic,CentralAmericanCountries,andtheU.S.).
Difficulty:1Easy
Topic:TradePolicyandGovernmentInterventioninInternationalTrade
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
39)AsTimothyexaminesmarketsthatmightmatchhiscompany'sinvestmentrequirements,heisparticularlyinterestedinthefactthattheEuropeanCommunityhasanextensivetransportationnetwork.Thisnetworkseemstodrawallthemembernationsclosertogetherphysically.WhatcriticalfactorforensuringaneffectiveeconomicunionisTimothymostlikelyexaminingwhenreviewingtransportationnetworks?
A)culturalfactors
B)tradefactors
C)politicalfactors
D)geographicproximity
E)economicfactors
Answer:D
Explanation:Geographicalclosenessdoesfacilitatethefunctioningofacommonmarket.Itisseenthattransportationnetworksarelikelytobeinterrelatedandwelldevelopedwhencountriesareclosetogether.Therefore,Timothyisjudgingtheeffectivenessoftheeconomicunionbyassessingthegeographicproximityofthemembersoftheunion.
Difficulty:3Hard
Topic:GeographicalImplicationsthatAffectTrade
LearningObjective:10-01Thereasonsforeconomicunion.
Bloom's:Apply
AACSB:KnowledgeApplication
Accessibility:KeyboardNavigation
40)Similarityofculturescanmakeorbreakaneconomicunion.AlthoughthereisgreatculturaldiversityintheEuropeanUnion,keymembersshare________andarecommonlyawareofbeingEuropean.
A)acommonlanguage
B)along-establishedChristianheritage
C)adislikeforforeigners
D)astrongaffiliationtomonarchyandfeudalism
E)ademocraticbackgroundandheritage
Answer:B
Explanation:Culturalsimilarityeasestheshockofeconomiccooperationwithothercountries.Themoresimilartheculture,themorelikelyanagreementistosucceed,becausemembersunderstandtheou
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