Chapter 11 Flashcards
Which of the following exemplifies an economic bloc? Select one: a. EU b. WTO c. GATT d. UN
a. EU
MERCOSUR, an economic bloc in Latin America, is an example of an economic union.
Select one:
True
False
False
Some European countries have political union due to the presence of a common currency.
Select one:
True
False
False
Economic nationalism refers to the economic interdependence experienced by closely associated countries that have formed an alliance.
Select one:
True
False
False
Which of the following economic blocs will most likely merge with MERCOSUR to encompass all of South America? Select one: a. CER b. NAFTA c. CARICOM d. CAN
d. CAN
The official language of the EU is English
Select one:
True
False
False
MERCOSUR (Scenario)
Bravo Luggage Company is a Latin American firm based in Buenos Aires, Argentina. Bravo has seen a sharp increase in orders over the last few months and needs to increase the amount of material imported from other countries. Currently, the materials used to manufacture Bravo luggage come from suppliers in Paraguay. Bravo managers have been approached by suppliers from Mexico and China who are both offering very competitive prices on materials.
Which of the following questions would be most important for Bravo managers to evaluate when determining which supplier to use?
Select one:
a. How will using non-South American material affect the Bravo brand name?
b. Will consumer buying decisions alter if Bravo sources material from Mexico instead of Paraguay?
c. What will be the cost of materials shipped from Paraguay, Mexico, and China?
d. Are other countries planning to join MERCOSUR in the near future?
c. What will be the cost of materials shipped from Paraguay, Mexico, and China?
Examples of political unions include Mexico, Switzerland, Canada and Saudi Arabia.
Select one:
True
False
True
The intraregion exports of the EU are greater than its extraregion exports.
Select one:
True
False
True
A formal arrangement between two or more countries to reduce or eliminate tariffs is known as a(n) \_\_\_\_\_\_\_\_. Select one: a. quota arrangement b. free trade agreement c. memorandum of association d. memorandum of understanding
b. free trade agreement
In 1957, six countries – Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany formed an alliance called the European Union.
Select one:
True
False
False
\_\_\_\_\_\_\_\_ is the propensity for entrepreneurial activity and the existence of business systems that can support it, in a given business environment. Select one: a. Economic nationalism b. Mercantilism c. Economic dynamism d. Business nationalism
c. Economic dynamism
Which of the following nations is a member of MERCOSUR? Select one: a. Spain b. Cuba c. Mexico d. Argentina
d. Argentina
Sew-Right (Scenario)
A French sewing machine company, Sew-Right, has manufacturing facilities twenty miles outside of Paris. Since the formation of the EU, Sew-Right’s managers have been considering internationalizing the Sew-Right company. Sew-Right’s managers have also discussed the possibility of opening additional manufacturing facilities in Germany and Mexico. Sew-Right’s managers and executives are discussing the various options at a conference, and hope to reach a decision soon.
Which of the following best supports Sew-Right’s decision to internationalize into Germany instead of Mexico?
Select one:
a. Germany is a member of the same economic bloc.
b. Language barriers will impose difficulties in Mexico.
c. Germany would be a good launching point for Asia.
d. A German facility would be modern and economical.
a. Germany is a member of the same economic bloc.
The \_\_\_\_\_\_\_\_ is considered as the ultimate and the most advanced level of regional integration. Select one: a. customs union b. common market c. economic union d. political union
d. political union
Regional integration gives rise to trade creation and trade diversion.
Select one:
True
False
True
The European Union is the world’s largest, and most advanced regional economic bloc.
Select one:
True
False
True
One of the problems the EU has experienced is that the wealthier southern European nations have had to bail the poorer northern nations out of serious debt problems.
Select one:
True
False
False
Which of the following economic blocs will most likely merge with MERCOSUR to encompass all of South America? Select one: a. CER b. NAFTA c. CARICOM d. CAN
d. CAN
The official language of the European Union was originally English, but after Great Britain left the EU after the BREXIT vote the language reverted to a mix of 23 different official languages.
Select one:
True
False
False
Economic nationalism refers to the economic interdependence experienced by closely associated countries that have formed an alliance.
Select one:
True
False
False
The European Union has a much higher level of Economic Integration than does the U.S.A.
Select one:
True
False
False
The second-largest free trade area in Europe is the \_\_\_\_\_\_\_\_. Select one: a. EU b. CAN c. EFTA d. BAFTA
c. EFTA
Which of the following economic blocs includes Switzerland as a member country? Select one: a. EU b. EFTA c. CAN d. APEC
b. EFTA
Economic Bloc Creation (Scenario)
Country A and Country B are considering joining together into an economic bloc. Country A and Country B are both low-wage countries. Country A and Country B are separated from each other by Country C, which already belongs to an economic bloc. Representatives from Country A and Country B are meeting to discuss the possibilities of an economic bloc, and interpreters for each representative are assisting with the meeting procedures.
Which of the following statements ideally supports Country A and Country B becoming an economic bloc?
Select one:
a. similarities in geographic features
b. similarities in economic situations
c. similarities in tariff rules and rates
d. linguistic and cultural similarities
b. similarities in economic situations
Which of the following exemplifies an economic bloc? Select one: a. EU b. WTO c. GATT d. UN
a. EU
\_\_\_\_\_\_\_\_ is the propensity for entrepreneurial activity and the existence of business systems that can support it, in a given business environment. Select one: a. Economic nationalism b. Mercantilism c. Economic dynamism d. Business nationalism
c. Economic dynamism
Regional integration often forces corporate restructuring which may lead to \_\_\_\_\_\_\_\_. Select one: a. economic nationalism b. increased trade barriers c. reduced global trade d. worker layoffs
d. worker layoffs
In economic unions, member countries often adopt standardized tax rates and exchange rates.
Select one:
True
False
True
