Question 1

One of the most significant regional economic integration initiatives in Asia is the Association of Southeast Asian Nations (ASEAN).

Accepted Answer

A) True 
 B)False

Question 2

Which of the following countries has adopted the euro as its currency?

Accepted Answer

A)  Great Britain
B)  France
C)  Denmark
D)  SwedenE) A) and D)
F) None of the above

Question 3

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.

Accepted Answer

A)  job losses
B)  national sovereignty
C)  trade unionism
D)  cultural uniformityE) A) and D)
F) A) and C)

Question 4

What comprises the euro zone?

Accepted Answer

A)  The member nations of the European Union.
B)  The member nations of the European Union and the applicants to the union.
C)  The member nations who use euro as its currency.
D)  The member nations of the European Union and countries who have pegged their currencies to the euro.E) A) and C)
F) C) and D)

Question 5

Since its establishment in January 1,1999,the euro has steadily appreciated against the U.S.dollar,reaffirming the ability of the ECB to manage monetary policy within the euro zone.

Accepted Answer

A) True 
 B)False

Question 6

Define trade creation and trade diversion with respect to regional economic integration.Under what circumstance will regional integration be in the best interest of the world economy?

Accepted Answer

Trade creation occurs when high-cost dom...

Question 7

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

Accepted Answer

A)  Trade creation
B)  Trade correction
C)  Trade balancing
D)  Trade diversionE) A) and D)
F) B) and C)

Question 8

Which treaty committed EC members to adopting a common currency by January 1,1999?

Accepted Answer

A)  The Maastricht Treaty
B)  The Treaty of Rome
C)  The Treaty of Lisbon
D)  The Montreal TreatyE) None of the above
F) A) and D)

Question 9

All member nations in a free trade area are required to arrive at common trade policies with regard to nonmembers.

Accepted Answer

A) True 
 B)False

Question 10

Explain how the creation of a single market through regional economic integration offers significant opportunities.Provide an example.

Accepted Answer

The creation of a single market through ...

Question 11

The European Parliament is responsible for proposing EU legislation,implementing it,and monitoring compliance with EU laws by member states.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the drawbacks associated with adopting euro as the common currency.

Accepted Answer

According to some critics,the drawback o...

Question 13

Which country was the last entrant into the NAFTA?

Accepted Answer

A)  United States
B)  Chile
C)  Mexico
D)  CanadaE) None of the above
F) B) and C)

Question 14

Nowhere has the movement toward regional economic integration been more successful than in:

Accepted Answer

A)  AfricA.
B)  South America.
C)  Middle-East.
D)  Europe.E) A) and B)
F) B) and C)

Question 15

According to economists,the benefits of regional integration are determined by the extent of trade diversion,as opposed to trade creation.

Accepted Answer

A) True 
 B)False

Question 16

Collectively,the member states of _____ account for about 55 percent of the world's GNP,49 percent of world trade,and much of the growth in the world economy.

Accepted Answer

A)  EU
B)  APEC
C)  ASEAN
D)  NAFTAE) B) and C)
F) A) and C)

Question 17

The emergence of single markets presents the threat to companies that the business environment within each grouping will become more competitive.

Accepted Answer

A) True 
 B)False

Question 18

Mercosur originated in 1988 as a free trade pact between Brazil and Argentina.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following bodies,established in 1951 was the forerunner of the EU?

Accepted Answer

A)  European Economic Community
B)  European Coal and Steel Community
C)  European Agricultural and Energy Union
D)  European Textiles and Agricultural CommunityE) B) and C)
F) None of the above

Question 20

Assume that three countries form a common market.It can be expected that labor and capital are free to move between these countries.

Accepted Answer

A) True 
 B)False

Exam 8: Regional Economic Integration

Explain how the creation of a single market through regional economic integration offers significant opportunities.Provide an example.

Correct AnswerverifiedThe creation of a single market through ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

One of the most significant regional economic integration initiatives in Asia is the Association of Southeast Asian Nations (ASEAN).

Correct AnswerverifiedShow Answer

Which country was the last entrant into the NAFTA?

Correct AnswerverifiedShow Answer

The European Parliament is responsible for proposing EU legislation,implementing it,and monitoring compliance with EU laws by member states.

Correct AnswerverifiedShow Answer

Collectively,the member states of _____ account for about 55 percent of the world's GNP,49 percent of world trade,and much of the growth in the world economy.

Correct AnswerverifiedShow Answer

Define trade creation and trade diversion with respect to regional economic integration.Under what circumstance will regional integration be in the best interest of the world economy?

Correct AnswerverifiedTrade creation occurs when high-cost dom...View AnswerShow Answer

Assume that three countries form a common market.It can be expected that labor and capital are free to move between these countries.

Correct AnswerverifiedShow Answer

Discuss the drawbacks associated with adopting euro as the common currency.

Correct AnswerverifiedAccording to some critics,the drawback o...View AnswerShow Answer

Which treaty committed EC members to adopting a common currency by January 1,1999?

Correct AnswerverifiedShow Answer

Which of the following bodies,established in 1951 was the forerunner of the EU?

Correct AnswerverifiedShow Answer

According to economists,the benefits of regional integration are determined by the extent of trade diversion,as opposed to trade creation.

Correct AnswerverifiedShow Answer

What comprises the euro zone?

Correct AnswerverifiedShow Answer

Mercosur originated in 1988 as a free trade pact between Brazil and Argentina.

Correct AnswerverifiedShow Answer

Since its establishment in January 1,1999,the euro has steadily appreciated against the U.S.dollar,reaffirming the ability of the ECB to manage monetary policy within the euro zone.

Correct AnswerverifiedShow Answer

Which of the following countries has adopted the euro as its currency?

Correct AnswerverifiedShow Answer

The emergence of single markets presents the threat to companies that the business environment within each grouping will become more competitive.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Nowhere has the movement toward regional economic integration been more successful than in:

Correct AnswerverifiedShow Answer

All member nations in a free trade area are required to arrive at common trade policies with regard to nonmembers.

Correct AnswerverifiedShow Answer

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The creation of a single market through ...
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Trade creation occurs when high-cost dom...
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According to some critics,the drawback o...
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