Question 1

A ________ is a factory in which little transformation of a product is undertaken.

Accepted Answer

A)   maquiladora
B)   screwdriver plant
C)   greenfield operation
D)   global shipping platformE) C) and D)
F) None of the above

Question 2

Mexico relied on which of the following trade activities between 1917 and 1982?

Accepted Answer

A)   low import tariffs
B)   foreign direct investment restrictions
C)   privatization of key industries
D)   membership in GATT and the WTOE) C) and D)
F) None of the above

Question 3

CVR Enterprises is based in the EU country that has the greatest number of votes in Parliament. CVR Enterprises is most likely a ________ firm.

Accepted Answer

A)   German
B)   French
C)   British
D)   ItalianE) C) and D)
F) A) and B)

Question 4

Under GATT, tariffs fell from about ________ in 1948 to about ________ in 2005.

Accepted Answer

A)   20 percent; 4 percent
B)   28 percent; 5 percent
C)   40 percent; 3 percent
D)   60 percent; 10 percentE) A) and B)
F) C) and D)

Question 5

A(n)  ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

Accepted Answer

A)   free trade area
B)   customs union
C)   common market
D)   economic unionE) All of the above
F) C) and D)

Question 6

Executives at TVR Enterprises, an MNE based in Germany, feel threatened by a pending EU regulation that will require the MNE to reduce its production capacity. Which of the following actions is the most appropriate for TVR?

Accepted Answer

A)   complying with the EU's mutual recognition laws
B)   apply for a harmonization regulation with the European Union
C)   appealing to the European Court of Justice
D)   lobbying the European CommissionE) None of the above
F) B) and C)

Question 7

The European Court of Justice declared Germany's 450-year-old beer purity law illegal.

Accepted Answer

A) True 
 B)False

Question 8

Salvo Software develops computer games and business software systems that are popular throughout the world. Like many software firms, Salvo has experienced problems with illegal counterfeiting of its products. Given this concern, which of the following would be of most interest to Salvo?

Accepted Answer

A)   TRIMS
B)   BARS
C)   TRIPS
D)   GATSE) B) and C)
F) None of the above

Question 9

What two factors led to the creation of the ASEAN trading bloc?

Accepted Answer

A decrease in government control of national economies that stimulated local entrepreneurs and attracted FDI and a defensive response to the growth of other regional trading blocs led to the creation of ASEAN.

Question 10

For most of their histories, Australia and New Zealand have been trade rivals.

Accepted Answer

A) True 
 B)False

Question 11

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

Accepted Answer

A)   agricultural goods
B)   tariff reductions
C)   foreign exchange
D)   service tradeE) All of the above
F) B) and C) A

Question 12

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

Accepted Answer

A) True 
 B)False

Question 13

The European Commission serves as the legislative branch of the European Union.

Accepted Answer

A) True 
 B)False

Question 14

What is the difference between an economic union and a political union? Which one characterizes the European Union? Why?

Accepted Answer

An economic union has all the characteri...

Question 15

A political union ________.

Accepted Answer

A)   is complete political and economic integration of two or more countries
B)   eliminates trade barriers among member countries and reduces trade deflection
C)   requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production
D)   involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembersE) B) and C)
F) A) and D)

Question 16

What was the most important aspect of the Maastricht Treaty?

Accepted Answer

The most important aspect of the Maastricht Treaty was the establishment of economic and monetary union among European Union countries.

Question 17

What functions are performed by the European Commission?

Accepted Answer

It proposes legislation to be considered...

Question 18

How did the European Union initially eliminate conflicts among member countries?

Accepted Answer

A)   mandatory arbitration
B)   harmonization
C)   negotiation
D)   legislationE) C) and D)
F) B) and D)

Question 19

What is a free trade area? Provide an example of a free trade area.

Accepted Answer

A free trade area encourages t...

Question 20

The Asia-Pacific Economic Cooperation Initiative was developed in response to the growing interdependence of the Asia-Pacific economies.

Accepted Answer

A) True 
 B)False

Exam 10: International Cooperation Among Nations

A ________ is a factory in which little transformation of a product is undertaken.

Correct AnswerverifiedShow Answer

Mexico relied on which of the following trade activities between 1917 and 1982?

Correct AnswerverifiedShow Answer

CVR Enterprises is based in the EU country that has the greatest number of votes in Parliament. CVR Enterprises is most likely a ________ firm.

Correct AnswerverifiedShow Answer

Under GATT, tariffs fell from about ________ in 1948 to about ________ in 2005.

Correct AnswerverifiedShow Answer

A(n) ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

Correct AnswerverifiedShow Answer

Executives at TVR Enterprises, an MNE based in Germany, feel threatened by a pending EU regulation that will require the MNE to reduce its production capacity. Which of the following actions is the most appropriate for TVR?

Correct AnswerverifiedShow Answer

The European Court of Justice declared Germany's 450-year-old beer purity law illegal.

Correct AnswerverifiedShow Answer

Salvo Software develops computer games and business software systems that are popular throughout the world. Like many software firms, Salvo has experienced problems with illegal counterfeiting of its products. Given this concern, which of the following would be of most interest to Salvo?

Correct AnswerverifiedShow Answer

What two factors led to the creation of the ASEAN trading bloc?

Correct AnswerverifiedA decrease in government control of national economies that stimulated local entrepreneurs and attracted FDI and a defensive response to the growth of other regional trading blocs led to the creation of ASEAN.

For most of their histories, Australia and New Zealand have been trade rivals.

Correct AnswerverifiedShow Answer

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

Correct AnswerverifiedA

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

Correct AnswerverifiedShow Answer

The European Commission serves as the legislative branch of the European Union.

Correct AnswerverifiedShow Answer

What is the difference between an economic union and a political union? Which one characterizes the European Union? Why?

Correct AnswerverifiedAn economic union has all the characteri...View AnswerShow Answer

A political union ________.

Correct AnswerverifiedShow Answer

What was the most important aspect of the Maastricht Treaty?

Correct AnswerverifiedThe most important aspect of the Maastricht Treaty was the establishment of economic and monetary union among European Union countries.

What functions are performed by the European Commission?

Correct AnswerverifiedIt proposes legislation to be considered...View AnswerShow Answer

How did the European Union initially eliminate conflicts among member countries?

Correct AnswerverifiedShow Answer

What is a free trade area? Provide an example of a free trade area.

Correct AnswerverifiedA free trade area encourages t...View AnswerShow Answer

The Asia-Pacific Economic Cooperation Initiative was developed in response to the growing interdependence of the Asia-Pacific economies.

Correct AnswerverifiedShow Answer

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Under GATT, tariffs fell from about in 1948 to about in 2005.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A decrease in government control of national economies that stimulated local entrepreneurs and attracted FDI and a defensive response to the growth of other regional trading blocs led to the creation of ASEAN.

Correct Answer
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Correct Answer
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A

Correct Answer
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Correct Answer
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Correct Answer
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An economic union has all the characteri...
View Answer

Correct Answer
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Correct Answer
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The most important aspect of the Maastricht Treaty was the establishment of economic and monetary union among European Union countries.

Correct Answer
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It proposes legislation to be considered...
View Answer

Correct Answer
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Correct Answer
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A free trade area encourages t...
View Answer

Correct Answer
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