Question 1

Economically speaking,the Arab Maghreb Union is one of the most powerful of any trade groups

Accepted Answer

The answer of Economically speaking,the Arab Maghreb Union is one...

Question 2

The Organization of Petroleum Exporting Countries is an example of a commodity price agreement.

Accepted Answer

The answer of The Organization of Petroleum Exporting Countries is...

Question 3

The biggest challenge in developing markets is in providing:
A)Domestic goods
B)Luxury goods
C)Commercial services
D)Agricultural goods
E)Essential services

Accepted Answer

Developing markets often lack access to essential services such as healthcare, education, and clean water. Providing these services is a significant challenge as it requires both a significant investment in infrastructure and overcoming cultural barriers to their adoption. Additionally, the infrastructure required to provide these services may not be profitable in the short term, making it difficult to attract private sector investment.

Question 4

In North American integration,the interest is more economic than political or social.

Accepted Answer

North American integration primarily focuses on boosting economic ties between the three nations involved (United States, Canada, and Mexico), rather than political or social integration. This can be seen in initiatives such as the North American Free Trade Agreement (NAFTA) and the proposed United States-Mexico-Canada Agreement (USMCA).

Question 5

The international manager,as a change agent,must constantly seek ways to influence the regulatory environment in which he or she must operate. This can best be done via:
A)Strategic planning
B)Reorganization
C)Lobbying
D)Fixing prices
E)Lying

Accepted Answer

Lobbying involves attempting to influence the decisions made by government officials or regulatory bodies through the use of persuasion, advocacy, and other forms of communication. As an international manager, lobbying can be an effective way to influence the regulatory environment and create a more favorable business climate. However, it is important to conduct lobbying activities in an ethical and transparent manner to avoid potential legal or reputational risks. Strategic planning and reorganization may also be effective in achieving business objectives, but they may not directly address regulatory barriers. Fixing prices and lying are unethical and illegal practices that should not be used by international managers.

Question 6

In 1999,China proposed the Asia Pacific Economic Cooperation as an annual forum.

Accepted Answer

The Asia Pacific Economic Cooperation (APEC) was established in 1989, not proposed by China in 1999. It was initiated by Australia and Japan to promote economic cooperation in the Asia-Pacific region.

Question 7

When a small country imposes tariffs on certain imported goods,the price of these goods will typically decrease as a result.

Accepted Answer

When a small country imposes tariffs on certain imported goods, it makes the price of these goods increase because it adds to the cost of importing them. Tariffs are a form of protectionism that can make domestic products more competitive against foreign goods, but they can also lead to higher prices for consumers. Therefore, the statement in the question is false.

Question 8

A factor market involves a group of countries that agree to (1)remove all barriers to trade,(2)establish a common trade policy with respect to nonmembers,and (3)allow mobility for factors of production.

Accepted Answer

A factor market involves the market for factors of production, such as labor, capital, and land. It does not necessarily involve a group of countries agreeing to remove trade barriers and establish a common trade policy. This statement is more in line with the concept of a free trade area or a customs union.

Question 9

In opposition to the U.S.-led Free Trade Agreement of the Americas,the Andean Common Market (ANCOM)was founded in 1969 and focuses more on social welfare and economic aid than trade liberalization.

Accepted Answer

The Andean Common Market (ANCOM), now known as the Andean Community (CAN), was founded in 1969 primarily to promote free trade and economic integration among its member countries, not in opposition to the U.S.-led Free Trade Agreement of the Americas, which was proposed much later.

Question 10

The Caribbean Basin Initiative (CBI)extended trade preferences to Caribbean countries granting them special access to the markets of the United States.

Accepted Answer

The Caribbean Basin Initiative (CBI) did indeed extend trade preferences to Caribbean countries granting them special access to the markets of the United States.

Question 11

Gerenco is a South American utility company that can be described as a weak competitor with relatively low market share in South American utilities. What strategy should the company consider to gain market entry and development?
A)Sell assets
B)Fix prices
C)Strong-arm competitors
D)Create alliances
E)Lobby governments

Accepted Answer

Creating alliances with stronger competitors or established players in the South American utilities market can help Gerenco gain access to their customer base and expand their market share. This will also provide Gerenco with opportunities to learn from more established companies and improve their operations. Additionally, these alliances will help Gerenco gain credibility and establish themselves as a reputable player in the market.

Question 12

Either negative or positive effects may result when a group of countries trade freely among themselves but maintain common barriers to trade with nonmembers.

Accepted Answer

This statement is true. The group of countries may benefit from increased trade and economic integration, leading to greater economic growth and job creation. On the other hand, nonmember countries may suffer from trade restrictions, leading to a loss of market access and decreased economic opportunities.

Question 13

The executive body of the EU is the Council of Ministers,headquartered in Rome.

Accepted Answer

The executive body of the EU is called the European Commission and is headquartered in Brussels, Belgium. The Council of Ministers is part of the EU's legislative branch and also has its seat in Brussels.

Question 14

The least restrictive form of economic integration,a free trade area,involves the abolition of barriers to trade among member countries.

Accepted Answer

This statement is true. In a free trade area, member countries agree to eliminate tariffs, quotas, and other trade barriers among themselves but maintain their own individual trade policies with non-member countries. This is the least restrictive form of economic integration compared to customs unions, common markets, and economic unions.

Question 15

The first step toward European integration occurred in 1948 with the establishment of the Organization for European Economic Cooperation (EEC).

Accepted Answer

The answer of The first step toward European integration occurred...

Question 16

_________ is the provision of financial services to low-income clients,including consumers and the self-employed,who traditionally lack access to banking and related services.
A)Alt-A lending
B)Microfinance
C)Glass-Steagall
D)LIBOR lending
E)Improving access

Accepted Answer

Microfinance is specifically designed to provide financial services, such as credit and savings, to individuals and businesses who are unable to access traditional banking services. This includes low-income consumers and self-employed individuals who may not have the collateral or credit history required to obtain loans from commercial banks. Alt-A lending, Glass-Steagall, and LIBOR lending are all related to the broader financial industry but do not directly address the issue of improving financial access for marginalized groups. "Improving access" is a general term that could refer to a variety of efforts across different industries and is not specific to microfinance.

Question 17

When ___________,companies must combine advanced technology with local insights in order to be successful in developing markets.
A)researching
B)creating buying power
C)tailoring local situations
D)improving access
E)shaping aspirations

Accepted Answer

To be successful in developing markets, companies must tailor their strategies and products to fit the local situations. This involves taking into account factors such as cultural differences, customer preferences, and local regulations. Advanced technology can be important in developing markets, but it must be combined with an understanding of the local context in order to be effective.

Question 18

Since NAFTA took effect in 1994,trade among Canada,Mexico,and the United States has stayed virtually the same.

Accepted Answer

Trade among Canada, Mexico, and the United States has increased significantly since NAFTA took effect in 1994, with trilateral trade increasing from $290 billion in 1993 to $1.1 trillion in 2016.

Question 19

Members of the Group of Five include the United States,Britain,France,China,and Russia.

Accepted Answer

The Group of Five refers to the five major emerging economies: Brazil, Russia, India, China, and South Africa (BRICS), not the permanent members of the United Nations Security Council.

Question 20

Internal economies of scale refer to lower production costs resulting from greater production for an enlarged market.

Accepted Answer

This is the correct definition of internal economies of scale.

Quiz 8: Economic Integration, emerging and Developing Markets