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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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