Deck 8: Capitalizing on Global and Regional Integration

Question 1

The European Union became a political union after the Budapest Treaty had been ratified in late 2006.

Answer 1

False

Question 2

Mercosur is relatively more protectionist and suspicious of the US, whereas the Andean Community is more pro-free trade.

Answer 2

True

Question 3

Three EU members Britain, Denmark and Sweden do not use the euro as their currency.

Answer 3

True

Question 4

Schengen is a passport-free travel zone within the EU.

Question 5

The EU has been an economic union since the Maastricht Treaty went into effect in 1993.

Question 6

NAFTA is an example of a common market.

Question 7

EU can be best described as the United States of Europe.

Question 8

The negotiations sponsored by WTO in Doha, Qatar, were aimed directly at the economic development of developing countries.

Question 9

General Agreement on Tariffs and Trade (GATT) expanded considerably into WTO.

Question 10

The hot potato of the Doha round turned out to be intellectual property.

Question 11

The crucial principle of GATT/WTO is non-discrimination, ensuring that countries do not discriminate among its trading partners.

Question 12

Upon establishment of GATT, there were many loopholes in the Multifibre Arrangement (MFA), designed to limit free trade in textiles.

Question 13

Except for Moldavia, all WTO members are now involved in some regional trade arrangement.

Question 14

There are three types of economic integration, namely: global, regional, and local.

Question 15

The WTO has six main areas of concern, including trade of goods, services, intellectual property, and banning governments from protecting their agricultural industry.

Question 16

The multilateral trading system resolves disputes between two countries involved in global trade.

Question 17

NAFTA, a free trade agreement between Canada, Mexico, and the United States, secured Mexico a preferential treatment for 80% of its exports.

Question 18

Regional economic integration refers to efforts to reduce trade and investment barriers throughout the globe.

Question 19

Unlike tariffs, whose existence is easily observed, many governments imposed NTBs (non-tariff barriers) to protect their domestic market.

Question 20

The World Trade Organization was created after World War II as a multilateral trading system.

Question 21

The EU became an economic union when the ____ went into affect in 1993.

A) Treaty of Rome
B) Maastricht Treaty
C) Treaty of Bristles
D) Madrid Treaty

Question 22

In 1989 ASEAN and CER countries formed yet another regional entity, the APEC.

Question 23

All Latin American countries launched negotiations with Canada and the US for a possible Free Trade Area of the Americas.

Question 24

The ANZCERTA or CER, launched in 1983, turned historical rivalry between Australia and New Zealand into a partnership.

Question 25

Which one of the following was agreed upon and launched at the end of the Uruguay Round trade talks?

A) GATT
B) The EU
C) The WTO
D) The Multifiber Arrangement

Question 26

Although founded in 1967, the Association of Southeast Asian Nations (ASEAN) had not been economically active until 1996.

Question 27

Which of the following is an agreement regulating intellectual property?

A) GATT
B) GATS
C) IPA
D) TRIPS

Question 28

The most (in)famous loophole in merchandise trade created through GATT was:

A) TRIPS
B) NTB
C) MFA
D) MBA

Question 29

Which one of the following was NOT part of the agenda of the Doha round?

A) Reducing agricultural subsidies in developing countries
B) Slashing tariffs in the industries that developing countries might benefit from
C) Freeing up trade in services
D) Strengthening intellectual property protection

Question 30

In a(n) ____, members coordinate and harmonize monetary, fiscal, and taxation policies.

A) Monetary union
B) Political union
C) Economic union
D) Custom union

Question 31

Countries benefit from global economic integration politically and economically. Which of the following is an example of a political benefit?

A) Rules make life easier and discrimination impossible
B) Raise incomes and stimulate economic growth
C) Disputes are handled constructively
D) Promoting peace by promoting trade and investment

Question 32

Which of the following is NOT a benefit of regional economic integration?

A) Promoting peace by fostering closer economic ties
B) Setting consistent rules to make discriminatory regulations impossible
C) Allowing free trade to raise incomes and create new jobs
D) Increasing sovereignty of integrated countries

Question 33

Out of the following, which one is an example of regional economic integration?

A) European Union
B) British Commonwealth
C) AT T and T-Mobile merger
D) Coca-Cola international operations

Question 34

A(n) ____ union represents complete integration of all public affairs within a region.

A) Custom
B) Monetary
C) Economic
D) Political

Question 35

Efforts to reduce trade and investment barriers within one region refer to:

A) Global economic integration
B) Local economic integration
C) Regional economic integration
D) Both local and regional integration

Question 36

Which of the following is NOT an economic benefit of global economic integration?

A) Disputes are handled constructively.
B) Building confidence in a multilateral trading system.
C) Rules make life easier and discrimination impossible for all participating countries.
D) Free trade and investment raise incomes and stimulate economic growth.

Question 37

Which of the following is an example of a customs union?

A) Mercosur (Eastern South America)
B) EU (European Union)
C) RC (Russian Confederation)
D) Eastern Europe (Romania, Bulgaria)

Question 38

Which of the following best describes the European Union?

A) United States of Europe
B) Cooperation between governments, like the UN
C) Is meant to replace existing nation states (local European) governments
D) Pooling of sovereignty into a single, integrated entity

Question 39

Which of the following institutions was established following World War II to regulate the trade between countries?

A) WTO, World Trade Organization
B) GATT, General Agreement on Tariffs and Trade
C) UN, United Nations
D) EU, European Union

Question 40

Which one of the following is NOT a function of WTO?

A) Regulation of subsidies on agricultural products
B) Dispute settlement
C) Trade policy reviews
D) Regulation of trade of goods, services, and intellectual property

Question 41

Explain how the European Union, as an economic union, has helped its member countries break down barriers to regional trade.

Question 42

What is the main reason the US, Canada, and Australia decided to join the Asia-Pacific Economic Cooperation (APEC)?

A) No one wants to be left out of the most dynamic region in the world.
B) The APEC members desire closer economic integration.
C) Common political/economic interests
D) All of these answers

Question 43

At present, ____ of the ____ EU member countries are in the Schengen zone.

A) none, 41
B) 22, 41
C) all, 27
D) 22, 27

Question 44

Which of the following is NOT a benefit of adopting the euro?

A) Reducing currency conversion costs
B) Limiting the flexibility in fiscal policy
C) Facilitating direct price comparison
D) Imposing monetary discipline on governments

Question 45

Which of the following regional integration is yet to be established?

A) Mercosur
B) Andean Community
C) FTAA
D) CAFTA

Question 46

Discuss the challenges faced by the EU member countries sharing a common currency, the euro.

Question 47

Which of the NAFTA members benefited the most from this free trade agreement by securing preferential treatment for 80% of its exports?

A) US
B) Mexico
C) Canada
D) All the countries benefited equally

Question 48

Discuss the future of FTAA and CAFTA.

Question 49

Identify how the WTO addressed the former problems of the old GATT and how WTO executes their decisions.

Question 50

Discuss the formation of GATT and the issues that precipitated the formation of the WTO (Post GATT).

Question 51

Which of the following regional integrations is more pro-free trade oriented than others?

A) Mercosur
B) Andean Community
C) Latin American Union
D) CAFTA

Question 52

Which does ASEAN stand for?

A) Assembly of Southeast Asian Nations
B) Assembly of South American Nations
C) Association of Southeast Asian Nations
D) Association of South American Nations

Question 53

Which of the following is the economic trade agreement between Australia and New Zealand?

A) ANZCERTA
B) ASEAN
C) APEC
D) ANZU

Question 54

Explain possible political and economic benefits of global economic integration.