Question 1 Multiple Choice 1 of 1 point(s) In 1988 the governments of the United States and Canada agreed to enter in a _____, which went into effect on January 1, 1989. Your Answer: free trade agreement Correct Answer: free trade agreement Feedback: Difficulty: MediumPage: 286 Question 2 True/False 0 of 1 point(s) Of the trade blocs in Europe, the European Free Trade Association is the most significant. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 274 Question 3 Multiple Choice 0 of 1 point(s) The European Community (EC) was established in Your Answer: 1992. Correct Answer: 1957. Feedback: Difficulty: HardPage: 271 Question 4 Multiple Choice 0 of 1 point(s) The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers within the free trade is called Your Answer: trade alteration. Correct Answer: trade creation. Feedback: Difficulty: MediumPage: 274 Question 5 True/False 1 of 1 point(s) A customs union eliminates trade barriers between member countries and adopts a common external trade policy. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 270 Question 6 True/False 0 of 1 point(s) MERCOSUR originated in 1988 as a free trade pact between Brazil and Chile. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 288 Question 7 Multiple Choice 0 of 1 point(s) A ______ eliminates trade barriers between member countries and adopts a common external trade policy. Your Answer: free trade area Correct Answer: customs union Feedback: Difficulty: MediumPage: 270 Question 8 Multiple Choice 0 of 1 point(s) The _____ pact reportedly helped bring about an 80 percent increase in trade between Brazil and Argentina in the 1980's. Your Answer: NW Group Correct Answer: MERCOSUR Feedback: Difficulty: MediumPage: 288 Question 9 Multiple Choice 0 of 1 point(s) Establishment of a ______ trade policy necessitates a significant degree of harmony and cooperation on fiscal, monetary, and employment policies to oversee trade relations with nonmembers. Your Answer: political Correct Answer: common external Feedback: Difficulty: MediumPage: 270 Question 10 Multiple Choice 1 of 1 point(s) The term “Fortress Europe” refers to: Your Answer: the perception that the European Union is designed to protect the European continent from the import of foreign produced goods Correct Answer: the perception that the European Union is designed to protect the European continent from the import of foreign produced goods Feedback: Difficulty: MediumPage: 294 Question 1 Multiple Choice 0 of 1 point(s) The objective of the ______ was to remove barriers to intragroup shipments of coal, iron, steel, and scrap metal. Your Answer: European Union Correct Answer: European Coal and Steel Community Feedback: Difficulty: MediumPage: 274 Question 2 Multiple Choice 0 of 1 point(s) A regional free trade agreement will benefit the world only if: Your Answer: the amount of trade it creates and the amount it diverts are the same Correct Answer: the amount of trade it creates exceeds the amount it diverts Feedback: Difficulty: MediumPage: 274 Question 3 True/False 1 of 1 point(s) To signify the importance of the Single European Act, the European Union decided to change its name to the European Community once the act took effect. Your Answer: false Correct Answer: false Feedback: Difficulty: HardPage: 278 Question 4 True/False 1 of 1 point(s) The North American Free Trade Agreement includes Canada, the United States, and Mexico. Your Answer: true Correct Answer: true Feedback: Difficulty: EasyPage: 285 Question 5 Multiple Choice 1 of 1 point(s) Economic theories suggest that free trade and investment is a positive-sum game, in which Your Answer: all participating countries stand to gain. Correct Answer: all participating countries stand to gain. Feedback: Difficulty: MediumPage: 271 Question 6 True/False 1 of 1 point(s) Nowhere has the movement toward regional economic integration been more successful than in North America. Your Answer: false Correct Answer: false Feedback: Difficulty: MediumPage: 268 Question 7 True/False 1 of 1 point(s) The Single European Act was born out of frustration among EC member countries that the community was not living up to its promise. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 278 Question 8 Multiple Choice 0 of 1 point(s) The principle argument of those that opposed NAFTA centered around the fear that it would result in: Your Answer: retaliation from the European Union Correct Answer: many U.S. jobs transferred to Mexico Feedback: Difficulty: MediumPage: 286 Question 9 True/False 0 of 1 point(s) Throughout the more recent years, the European Commission's role in competition policy has become stagnant. Your Answer: true Correct Answer: false Feedback: Difficulty: EasyPage: 276 Question 10 True/False 1 of 1 point(s) In a theoretically ideal common market, labor and capital are free to move, as there are no restrictions on immigration, emigration, or cross-border flows of capital between markets. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 270 Question 1 True/False 0 of 1 point(s) Several levels of economic integration are possible in theory. From most integrated to the least integrated they are a free trade area, a customs union, a common market, an economic union, and finally, a full political union. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 269 Question 2 Multiple Choice 0 of 1 point(s) The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers within the free trade is called Your Answer: trade qualification. Correct Answer: trade creation. Feedback: Difficulty: MediumPage: 274 Question 3 Multiple Choice 1 of 1 point(s) In regard to regional economic integration, the last few years have witnessed: Your Answer: an unprecedented proliferation of regional trade agreements Correct Answer: an unprecedented proliferation of regional trade agreements Feedback: Difficulty: MediumPage: 268 Question 4 Multiple Choice 0 of 1 point(s) The strongest holdout opposing a common currency in the EU is: Your Answer: Germany Correct Answer: Britain Feedback: Difficulty: MediumPage: 273 Question 5 Multiple Choice 0 of 1 point(s) The European Free Trade Association's emphasis has been on free trade in Your Answer: consumer goods. Correct Answer: industrial goods. Feedback: Difficulty: HardPage: 270 Question 6 Multiple Choice 0 of 1 point(s) Which of the following was not one of the purposes of the Single European Act? Your Answer: Remove all frontier controls between EU countries Correct Answer: Remove the principle of “mutual recognition” as it pertains to product standards Feedback: Difficulty: HardPage: 278-279 Question 7 Multiple Choice 0 of 1 point(s) Economic theories suggest that free trade and investment is a positive-sum game, in which Your Answer: at least one participating country gains. Correct Answer: all participating countries stand to gain. Feedback: Difficulty: MediumPage: 271 Question 8 Multiple Choice 0 of 1 point(s) An agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other is referred to as Your Answer: cross-cultural economic-political integration. Correct Answer: regional economic integration. Feedback: Difficulty: EasyPage: 268 Question 9 Multiple Choice 1 of 1 point(s) In theory, ______ rules should ensure that a free trade agreement does not result in trade diversion. Your Answer: World Trade Organization Correct Answer: World Trade Organization Feedback: Difficulty: HardPage: 274 Question 10 Multiple Choice 0 of 1 point(s) The objective of the ______ was to remove barriers to intragroup shipments of coal, iron, steel, and scrap metal. Your Answer: European Federation Correct Answer: European Coal and Steel Community Feedback: Difficulty: MediumPage: 274 Question 1 Multiple Choice 1 of 1 point(s) Establishment of a ______ trade policy necessitates a significant degree of harmony and cooperation on fiscal, monetary, and employment policies to oversee trade relations with nonmembers. Your Answer: common external Correct Answer: common external Feedback: Difficulty: MediumPage: 270 Question 2 Multiple Choice 0 of 1 point(s) NAFTA became law in: Your Answer: 1957 Correct Answer: 1994 Feedback: Difficulty: MediumPage: 285 Question 3 Multiple Choice 1 of 1 point(s) Like the common market, a(n) ______ involves the free flow of products and factors of production between members and the adoption of a common external trade policy. Your Answer: economic union Correct Answer: economic union Feedback: Difficulty: MediumPage: 270 Question 4 True/False 0 of 1 point(s) MERCOSUR originated in 1988 as a free trade pact between Brazil and Chile. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 288 Question 5 True/False 1 of 1 point(s) Formed in 1967, ASEAN includes Brunei, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Your Answer: true Correct Answer: true Feedback: Difficulty: HardPage: 290 Question 6 Multiple Choice 1 of 1 point(s) The original forerunner of the EU, the __________ was formed in 1951 by Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. Your Answer: European Coal and Steel Community Correct Answer: European Coal and Steel Community Feedback: Difficulty: HardPage: 274 Question 7 True/False 0 of 1 point(s) Although the European Union is the best known, a number of successful common markets exist throughout the world. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 270 Question 8 Multiple Choice 0 of 1 point(s) In the context of regional trade integration, concerns about _____ arise because close economic integration demands that countries give up some degree of their control over such key policy issues as monetary policy, fiscal policy, and trade policy. Your Answer: value added chain costs Correct Answer: national sovereignty Feedback: Difficulty: HardPage: 273 Question 9 Multiple Choice 1 of 1 point(s) On January 1, 1993, the ______ effectively became a single market with 340 million consumers. Your Answer: European Union Correct Answer: European Union Feedback: Difficulty: MediumPage: 268 Question 10 Multiple Choice 0 of 1 point(s) The European Community (EC) was established in Your Answer: 1992. Correct Answer: 1957. Feedback: Difficulty: HardPage: 271 Question 1 Multiple Choice 0 of 1 point(s) In 1990, the MERCOSUR pact was expanded to include Your Answer: Mexico and Brazil. Correct Answer: Paraguay and Uruguay. Feedback: Difficulty: MediumPage: 288 Question 2 Multiple Choice 1 of 1 point(s) According to our textbook, attempts at regional economic integration are motivated by: Your Answer: a desire to exploit the gains from free trade and investment Correct Answer: a desire to exploit the gains from free trade and investment Feedback: Difficulty: MediumPage: 271 Question 3 Multiple Choice 1 of 1 point(s) The original forerunner of the EU, the __________ was formed in 1951 by Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. Your Answer: European Coal and Steel Community Correct Answer: European Coal and Steel Community Feedback: Difficulty: HardPage: 274 Question 4 Multiple Choice 0 of 1 point(s) The _____, which now accounts for 630 members, is directly elected by the populations of the member states. Your Answer: European Union Correct Answer: European Parliament Feedback: Difficulty: MediumPage: 278 Question 5 Multiple Choice 0 of 1 point(s) The purpose of the _____ was to have a single market in place by December 31, 1992. Your Answer: North Atlantic Sovereignty Act Correct Answer: Single European Act Feedback: Difficulty: MediumPage: 278 Question 6 Multiple Choice 1 of 1 point(s) The __________ is composed of the heads of state of the EU's member nations and the president of the European Commission. Your Answer: European Council Correct Answer: European Council Feedback: Difficulty: MediumPage: 275 Question 7 Multiple Choice 0 of 1 point(s) Because many governments have accepted part or all of the case for intervention, unrestricted free trade and FDI have proved to be Your Answer: a reality. Correct Answer: only an ideal. Feedback: Difficulty: MediumPage: 271 Question 8 Multiple Choice 0 of 1 point(s) The free trade area known as MERCOSUR consists of the following four countries: Your Answer: Chile, Mexico, Columbia, and Paraguay Correct Answer: Argentina, Brazil, Paraguay, and Uruguay Feedback: Difficulty: HardPage: 268 Question 9 Multiple Choice 0 of 1 point(s) In 1988 the governments of the United States and Canada agreed to enter in a _____, which went into effect on January 1, 1989. Your Answer: economic union Correct Answer: free trade agreement Feedback: Difficulty: MediumPage: 286 Question 10 Multiple Choice 1 of 1 point(s) The European Union is currently a(n) _________. Your Answer: economic union Correct Answer: economic union Feedback: Difficulty: MediumPage: 270 Question 1 Multiple Choice 1 of 1 point(s) NAFTA stands for: Your Answer: North American Free Trade Agreement. Correct Answer: North American Free Trade Agreement. Feedback: Difficulty: MediumPage: 268 Question 2 Multiple Choice 1 of 1 point(s) According to our textbook, the move to a single currency in Europe should Your Answer: significantly decrease the cost of doing business in Europe. Correct Answer: significantly decrease the cost of doing business in Europe. Feedback: Difficulty: MediumPage: 280-281 Question 3 Multiple Choice 1 of 1 point(s) On January 1, 1993, the ______ effectively became a single market with 340 million consumers. Your Answer: European Union Correct Answer: European Union Feedback: Difficulty: MediumPage: 268 Question 4 True/False 1 of 1 point(s) Europe now has two trade blocs: the European Union and the European Free Trade Association. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 274 Question 5 Multiple Choice 0 of 1 point(s) For participating countries, a drawback of a single currency in Europe is that Your Answer: costs for doing business will increase. Correct Answer: national authorities will lose control over monetary policy. Feedback: Difficulty: HardPage: 281 Question 6 Multiple Choice 0 of 1 point(s) With the signing of the _____ in 1957, the European Community was established. Your Answer: Treaty of Brussels Correct Answer: Treaty of Rome Feedback: Difficulty: HardPage: 274 Question 7 Multiple Choice 1 of 1 point(s) In a _________, theoretically, there are no discriminatory tariffs, quotas, subsidies, or administrative impediments allowed to distort trade between members. Your Answer: free trade area Correct Answer: free trade area Feedback: Difficulty: EasyPage: 269 Question 8 True/False 1 of 1 point(s) Currently the most significant developments in regional economic integration are occurring in the EU and NAFTA. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 292 Question 9 Multiple Choice 0 of 1 point(s) Which of the following was not one of the purposes of the Single European Act? Your Answer: Remove all frontier controls between EU countries Correct Answer: Remove the principle of “mutual recognition” as it pertains to product standards Feedback: Difficulty: HardPage: 278-279 Question 10 True/False 0 of 1 point(s) Several levels of economic integration are possible in theory. From most integrated to the least integrated they are a free trade area, a customs union, a common market, an economic union, and finally, a full political union. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 269 Question 1 Multiple Choice 0 of 1 point(s) How many countries are members of the European Union? Your Answer: 9 Correct Answer: 15 Feedback: Difficulty: MediumPage: 274 Question 2 Multiple Choice 0 of 1 point(s) For participating countries, a drawback of a single currency in Europe is that Your Answer: costs for doing business will increase. Correct Answer: national authorities will lose control over monetary policy. Feedback: Difficulty: HardPage: 281 Question 3 Multiple Choice 1 of 1 point(s) In 1988 the governments of the United States and Canada agreed to enter in a _____, which went into effect on January 1, 1989. Your Answer: free trade agreement Correct Answer: free trade agreement Feedback: Difficulty: MediumPage: 286 Question 4 Multiple Choice 1 of 1 point(s) Many now see the _____ as the emerging economic and political superpower of the same order as the United States and Japan. Your Answer: European Union Correct Answer: European Union Feedback: Difficulty: MediumPage: 274 Question 5 Multiple Choice 1 of 1 point(s) In a _________, theoretically, there are no discriminatory tariffs, quotas, subsidies, or administrative impediments allowed to distort trade between members. Your Answer: free trade area Correct Answer: free trade area Feedback: Difficulty: EasyPage: 269 Question 6 Multiple Choice 1 of 1 point(s) In a free trade area Your Answer: barriers to the trade of goods and services among member nations are removed. Correct Answer: barriers to the trade of goods and services among member nations are removed. Feedback: Difficulty: MediumPage: 269 Question 7 Multiple Choice 0 of 1 point(s) A ______ eliminates trade barriers between member countries and adopts a common external trade policy. Your Answer: free trade area Correct Answer: customs union Feedback: Difficulty: MediumPage: 270 Question 8 Multiple Choice 1 of 1 point(s) A regional free trade agreement will benefit the world only if: Your Answer: the amount of trade it creates exceeds the amount it diverts Correct Answer: the amount of trade it creates exceeds the amount it diverts Feedback: Difficulty: MediumPage: 274 Question 9 True/False 1 of 1 point(s) Europe now has two trade blocs: the European Union and the European Free Trade Association. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 274 Question 10 Multiple Choice 1 of 1 point(s) Economic theories suggest that free trade and investment is a positive-sum game, in which Your Answer: all participating countries stand to gain. Correct Answer: all participating countries stand to gain. Feedback: Difficulty: MediumPage: 271 Question 1 Multiple Choice 0 of 1 point(s) The European Union is the product of two political factors. The devastation of two world wars on Western Europe and Your Answer: the removal of barriers to other countries. Correct Answer: the European nations' desire to hold their own on the world's political and economic stage. Feedback: Difficulty: MediumPage: 274 Question 2 Multiple Choice 1 of 1 point(s) Mexico's concerns about maintaining control of its oil interests resulted in an agreement with Canada and the United States to exempt the Mexican oil industry from any liberalization of foreign investment regulations achieved under NAFTA. This is an example of Your Answer: a concern of national sovereignty. Correct Answer: a concern of national sovereignty. Feedback: Difficulty: HardPage: 272-273 Question 3 True/False 1 of 1 point(s) Currently the most significant developments in regional economic integration are occurring in the EU and NAFTA. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 292 Question 4 Multiple Choice 1 of 1 point(s) Because many governments have accepted part or all of the case for intervention, unrestricted free trade and FDI have proved to be Your Answer: only an ideal. Correct Answer: only an ideal. Feedback: Difficulty: MediumPage: 271 Question 5 Multiple Choice 1 of 1 point(s) Who or what was the Delores Commission named after? Your Answer: Jacques Delors, president of the EC Correct Answer: Jacques Delors, president of the EC Feedback: Difficulty: MediumPage: 278 Question 6 Multiple Choice 1 of 1 point(s) Establishment of a ______ trade policy necessitates a significant degree of harmony and cooperation on fiscal, monetary, and employment policies to oversee trade relations with nonmembers. Your Answer: common external Correct Answer: common external Feedback: Difficulty: MediumPage: 270 Question 7 True/False 1 of 1 point(s) Formed in 1967, ASEAN includes Brunei, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Your Answer: true Correct Answer: true Feedback: Difficulty: HardPage: 290 Question 8 Multiple Choice 1 of 1 point(s) On January 1, 1993, the ______ effectively became a single market with 340 million consumers. Your Answer: European Union Correct Answer: European Union Feedback: Difficulty: MediumPage: 268 Question 9 Multiple Choice 0 of 1 point(s) MERCOSUR originated in 1988 as a free trade pact between _____. Your Answer: Peru and Brazil Correct Answer: Brazil and Argentina Feedback: Difficulty: MediumPage: 288 Question 10 Multiple Choice 1 of 1 point(s) In regard to regional economic integration, the last few years have witnessed: Your Answer: an unprecedented proliferation of regional trade agreements Correct Answer: an unprecedented proliferation of regional trade agreements Feedback: Difficulty: MediumPage: 268 Question 1 Multiple Choice 1 of 1 point(s) NAFTA stands for: Your Answer: North American Free Trade Agreement. Correct Answer: North American Free Trade Agreement. Feedback: Difficulty: MediumPage: 268 Question 2 True/False 0 of 1 point(s) To signify the importance of the Single European Act, the European Union decided to change its name to the European Community once the act took effect. Your Answer: true Correct Answer: false Feedback: Difficulty: HardPage: 278 Question 3 True/False 1 of 1 point(s) Although the European Union is the best known, a number of successful common markets exist throughout the world. Your Answer: false Correct Answer: false Feedback: Difficulty: MediumPage: 270 Question 4 True/False 0 of 1 point(s) MERCOSUR originated in 1988 as a free trade pact between Brazil and Chile. Your Answer: true Correct Answer: false Feedback: Difficulty: MediumPage: 288 Question 5 Multiple Choice 1 of 1 point(s) There are now two trade blocs in Europe. These are the Your Answer: European Union and the European Free Trade Association. Correct Answer: European Union and the European Free Trade Association. Feedback: Difficulty: HardPage: 274 Question 6 Multiple Choice 1 of 1 point(s) The European Community (EC) was established in Your Answer: 1957. Correct Answer: 1957. Feedback: Difficulty: HardPage: 271 Question 7 Multiple Choice 0 of 1 point(s) The strongest holdout opposing a common currency in the EU is: Your Answer: Belgium Correct Answer: Britain Feedback: Difficulty: MediumPage: 273 Question 8 Multiple Choice 0 of 1 point(s) By the mid-1980s, the Andean Pact had: Your Answer: been dissolved Correct Answer: all but collapsed Feedback: Difficulty: MediumPage: 287 Question 9 Multiple Choice 1 of 1 point(s) Establishment of a ______ trade policy necessitates a significant degree of harmony and cooperation on fiscal, monetary, and employment policies to oversee trade relations with nonmembers. Your Answer: common external Correct Answer: common external Feedback: Difficulty: MediumPage: 270 Question 10 Multiple Choice 0 of 1 point(s) The term “Fortress Europe” refers to: Your Answer: the unwillingness of European nations to consider forming trade relationships Correct Answer: the perception that the European Union is designed to protect the European continent from the import of foreign produced goods Feedback: Difficulty: MediumPage: 294 Question 1 Multiple Choice 1 of 1 point(s) In the context of regional trade integration, concerns about _____ arise because close economic integration demands that countries give up some degree of their control over such key policy issues as monetary policy, fiscal policy, and trade policy. Your Answer: national sovereignty Correct Answer: national sovereignty Feedback: Difficulty: HardPage: 273 Question 2 Multiple Choice 1 of 1 point(s) The objective of the ______ was to remove barriers to intragroup shipments of coal, iron, steel, and scrap metal. Your Answer: European Coal and Steel Community Correct Answer: European Coal and Steel Community Feedback: Difficulty: MediumPage: 274 Question 3 Multiple Choice 1 of 1 point(s) The original forerunner of the EU, the __________ was formed in 1951 by Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. Your Answer: European Coal and Steel Community Correct Answer: European Coal and Steel Community Feedback: Difficulty: HardPage: 274 Question 4 True/False 1 of 1 point(s) In a theoretically ideal common market, labor and capital are free to move, as there are no restrictions on immigration, emigration, or cross-border flows of capital between markets. Your Answer: true Correct Answer: true Feedback: Difficulty: MediumPage: 270 Question 5 Multiple Choice 1 of 1 point(s) A common market includes all of the following characteristics except Your Answer: full economic integration. Correct Answer: full economic integration. Feedback: Difficulty: MediumPage: 270 Question 6 Multiple Choice 1 of 1 point(s) An agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other is referred to as Your Answer: regional economic integration. Correct Answer: regional economic integration. Feedback: Difficulty: EasyPage: 268 Question 7 Multiple Choice 1 of 1 point(s) In 1988 the governments of the United States and Canada agreed to enter in a _____, which went into effect on January 1, 1989. Your Answer: free trade agreement Correct Answer: free trade agreement Feedback: Difficulty: MediumPage: 286 Question 8 Multiple Choice 1 of 1 point(s) How many countries are members of the European Union? Your Answer: 15 Correct Answer: 15 Feedback: Difficulty: MediumPage: 274 Question 9 True/False 1 of 1 point(s) Several levels of economic integration are possible in theory. From most integrated to the least integrated they are a free trade area, a customs union, a common market, an economic union, and finally, a full political union. Your Answer: false Correct Answer: false Feedback: Difficulty: MediumPage: 269 Question 10 Multiple Choice 1 of 1 point(s) The European Free Trade Association's emphasis has been on free trade in Your Answer: industrial goods. Correct Answer: industrial goods. Feedback: Difficulty: HardPage: 270