Question 1

The Asia-Pacific Economic Cooperation was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

Accepted Answer

A) True 
 B)False

Question 2

The judges of the European Court of Justice are required to act as representatives of national interests,rather than as independent officials.

Accepted Answer

A) True 
 B)False

Question 3

Once barriers to trade and investment are removed,companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Accepted Answer

A) True 
 B)False

Question 4

From least integrated to most integrated,the levels of economic integration are:

Accepted Answer

A)   a common market,a free trade area,an economic union,a customs union,and a political union.
B)   a free trade area,a customs union,a common market,an economic union,and a political union.
C)   a customs union,a free trade area,a common market,a political union,and an economic union.
D)   a common market,an economic union,a customs union,a free trade area,and a political union.E) None of the above
F) A) and B)

Question 5

The implied loss of national sovereignty to the ECB underlies the decision by Great Britain,Denmark,and Sweden to stay out of the euro zone for now.

Accepted Answer

A) True 
 B)False

Question 6

According to Alexander Yeats:

Accepted Answer

A)   the trade diversion effects of Mercosur outweigh its trade creation effects.
B)   the fastest growing items in intra-Mercosur trade were capital-intensive goods produced efficiently in the member countries.
C)   Mercosur countries will be able to compete globally once the group's external trade barriers come down.
D)   the customs union is becoming more perfect over time.E) B) and C)
F) A) and C)

Question 7

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

Accepted Answer

A)   Efficiency gain
B)   Trade diversion
C)   Trade deficit
D)   Trade creationE) A) and B)
F) A) and C)

Question 8

The Andean Pact is a highly successful common market modeled after the EU.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following was required for new applicants to qualify for EU membership?

Accepted Answer

A)   Minimum economy size of €1 trillion
B)   Nationalization of private assets
C)   Deregulation of markets
D)   Sustained GDP growth of 10 percent for five yearsE) B) and C)
F) None of the above

Question 10

The Free Trade Area of the Americas that was established in 2005 has thus far proven to be a success.

Accepted Answer

A) True 
 B)False

Question 11

The ultimate controlling unit within the EU is the European Council.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the economic case for economic integration.How does it relate to trade theory?

Accepted Answer

Economic theories of international trade...

Question 13

Bolivia,Peru,Ecuador,Columbia,and Venezuela are all members of:

Accepted Answer

A)   Mercosur.
B)   NAFTA.
C)   APEC.
D)   the Andean Pact.E) A) and D)
F) All of the above

Question 14

The lowering of barriers to trade and investment between countries is likely to lead to _____ throughout the EU.

Accepted Answer

A)   higher costs of borrowing
B)   increase prices
C)   increase in hedging costs
D)   increased price competitionE) A) and C)
F) A) and B)

Question 15

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

Accepted Answer

A)   Trade deficit
B)   Trade diversion
C)   Trade creation
D)   Trade distortionE) C) and D)
F) None of the above

Question 16

Which of the following is the most frequently aired objection to free trade in Africa?

Accepted Answer

A)   These economies are too small for free trade to exist.
B)   These countries are not ready for a full-fledged political union with a common currency.
C)   They need to be "protected" by tariff barriers from unfair foreign competition.
D)   The larger nations like South Africa and Kenya stand much to lose from free trade and competition.E) B) and D)
F) B) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The Single European Act committed EU countries to adopting a common currency by January 1,1999.

Accepted Answer

A) True 
 B)False

Question 19

Briefly describe the four main institutions that make up the political structure of the EU.

Accepted Answer

There are four main institutions that ma...

Question 20

Which feature of an economic union differentiates it from a common market?

Accepted Answer

A)   Free flow of products and factors of production between member countries
B)   A common monetary and fiscal policy
C)   A common external trade policy toward nonmembers
D)   Ability of factors of production to move freely between membersE) All of the above
F) B) and D)

Exam 9: Regional Economic Integration

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

Correct AnswerverifiedShow Answer

The lowering of barriers to trade and investment between countries is likely to lead to _____ throughout the EU.

Correct AnswerverifiedShow Answer

The Single European Act committed EU countries to adopting a common currency by January 1,1999.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Andean Pact is a highly successful common market modeled after the EU.

Correct AnswerverifiedShow Answer

The ultimate controlling unit within the EU is the European Council.

Correct AnswerverifiedShow Answer

According to Alexander Yeats:

Correct AnswerverifiedShow Answer

The Asia-Pacific Economic Cooperation was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

Correct AnswerverifiedShow Answer

Which of the following is the most frequently aired objection to free trade in Africa?

Correct AnswerverifiedShow Answer

Which feature of an economic union differentiates it from a common market?

Correct AnswerverifiedShow Answer

Briefly describe the four main institutions that make up the political structure of the EU.

Correct AnswerverifiedThere are four main institutions that ma...View AnswerShow Answer

Bolivia,Peru,Ecuador,Columbia,and Venezuela are all members of:

Correct AnswerverifiedShow Answer

The Free Trade Area of the Americas that was established in 2005 has thus far proven to be a success.

Correct AnswerverifiedShow Answer

The judges of the European Court of Justice are required to act as representatives of national interests,rather than as independent officials.

Correct AnswerverifiedShow Answer

Discuss the economic case for economic integration.How does it relate to trade theory?

Correct AnswerverifiedEconomic theories of international trade...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Once barriers to trade and investment are removed,companies can treat a group of integrated countries like the EU as a single market and produce standardized products for it.

Correct AnswerverifiedShow Answer

The implied loss of national sovereignty to the ECB underlies the decision by Great Britain,Denmark,and Sweden to stay out of the euro zone for now.

Correct AnswerverifiedShow Answer

Which of the following was required for new applicants to qualify for EU membership?

Correct AnswerverifiedShow Answer

From least integrated to most integrated,the levels of economic integration are:

Correct AnswerverifiedShow Answer

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There are four main institutions that ma...
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Economic theories of international trade...
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