Chapter 9/10/11

Question 1

What does GDP stand for?

Answer 1

GROSS DOMESTIC PRODUCT

Question 2

Please describe GDP PER CAPITA in relation to economic development

Answer 2

An increase in the average per capita gross domestic product or gross national income reflects an increase in national production thus leading to economic development.

Question 3

Where was FREE TRADE AREA established

Answer 3

Established between USA x Canada.

Question 4

What were the general goals of the market agreements (5) and overall major goal?

Answer 4

Larger markets for members & nonmembers
Economies of scale
Specialization
Mergers/competitiveness
Higher standard of living
Major goal: economic gain for all

Question 5

What were the CONDITIONS needed for success in market agreements between countries? In order to be successful, what is needed??

Answer 5

Geographic proximity
Similar economic system and strength 
Similar political systems
Similar social and cultural values
Members with diverse products and raw materials
Need complementary economies

Question 6

Describe when NAFTA came to be, what were results, and what happened in 2008.

Answer 6

When NAFTA was ratified and became effective in 1994, it became a single market of 360 million people with a $6 trillion GNP
NAFTA required the three countries to remove all tariffs and barriers to trade over 15 years
In 2008, all tariff barriers were officially dropped

Question 7

What is NAFTA?

Answer 7

United States x Canada = largest bilateral trade agreement…. This means that they were each other’s largest trading partner

Question 8

Customs Union

Answer 8

b

Question 9

What is economic development?

Answer 9

rapid economic growth

increases in consumer demand

Question 10

What was FREE TRADE AREA designed to do, eliminate?

Answer 10

Designed to eliminate all trade barriers between the two countries. No economic or political union, just ELIMINATES tariffs and other trade barriers.

Question 11

What was the purpose of NAFTA?

Answer 11

The purpose was to:
generate income and employment gains
Enhance global competitiveness of NAFTA firms

Question 12

What does NAFTA stand for?

Answer 12

North American Free Trade Agreement

Question 13

What did the United States and Canada establish to eliminate all trade barriers between the countries?

Answer 13

CTFA

Question 14

What is the purpose of Rule of Origin?

Answer 14

NAFTA reduces tariffs only for goods made in North America so rules of origin prevents free riders from benefiting through minor processing or transshipment of NON-NAFTA

Question 15

What were the companies involved in Mercosur?

Answer 15

Argentina	
 Brazil 
 Chile
 Bolivia
 Paraguay       
 Uruguay

Question 16

What’s another name for Mercosur?

Answer 16

Southern Cone Free Trade Area

Question 17

What is Mercosur?

Answer 17

Mercosur has become the most influential and successful free trade area in South America.

Question 18

What is Market Access?

Answer 18

Within 10 years of implementation, all tariffs will be eliminated on North American industrial products traded among Canada, Mexico, and the United States. All trade between Canada, Mexico, and the United States. All trade between Canada and the United States not already duty free will be duty free as provided for in CFTA. Mexico will immediately eliminate tariffs on nearly 50 percent of all industrial goods imported from the United States and remaining tariffs will be phased out entirely within 15 years.

Question 19

What are some countries in the ASEAN?

Answer 19

Brunei
Indonesia
Laos
Malaysia
Myanmar
Phillippines
Singapore
Thailand
Vietnam

Question 20

What does ASEAN stand for?

Answer 20

Association of Southeast Asian Nations

Question 21

What are the 9 key provisions of NAFTA?

Answer 21

Market Access
Nontariff Barriers
Rules of Origin
Customs Administration
Investment
Services
Intellectual Property
Government Procurement
Standards