QUESTION Which of the following is true of the Andean Pact during the mid-1980s? A. Tariff-free trade existed between member countries. B. Harmonization of economic policies between member countries had been achieved. C. Successful integration of member economies had been achieved. D. The Pact had failed to achieve the objective of a common external tariff. […]
QUESTION Which of the following is true of the East African Community (EAC)? A. Its program includes cooperation on immigration, road and telecommunication networks, investment, and capital markets. B. Its aim is to eliminate import tariffs among the six original members. C. It is the world’s largest free trade area. D. It seeks to apply […]
QUESTION Which of the following refers to a 1969 agreement among Bolivia, Chile, Ecuador, Colombia, and Peru to establish a customs union? A. Andean Pact B. ASEAN C. Mercosur D. CARICOM E. Caribbean Single Market and Economy ANSWER A
QUESTION Which of the following is a threat facing the emergence of single markets? A. Getting engulfed in a trade war B. Increased price competition throughout the European Union C. Increase in price differentials across nations D. Reduced environmental standards in order to lure investments E. Overabundance of greenfield investments ANSWER B
QUESTION The Andean Community now operates as a(n): A. common market. B. economic union. C. customs union. D. command economy. E. political union. ANSWER C
QUESTION The international monetary system refers to a system to regulate fixed exchange rates before the introduction of the euro. Indicate whether the statement is true or false. ANSWER FALSE The international monetary system refers to the institutional arrangements that govern exchange rates.
QUESTION Which of the following is true of Alexander Yeats’s criticism of the Andean Pact? A. He pointed out that the slowest growing items in intra-Mercosur trade were cars, buses, agricultural equipment, and other capital-intensive goods. B. He believed that the trade creation effects of Mercosur outweighed its trade diversion effects. C. He felt that […]
QUESTION Which of the following refers to a pact that originated in 1988 to establish a free trade area now including Argentina, Brazil, Paraguay, and Uruguay? A. ASEAN B. NAFTA C. Mercosur D. CARICOM E. CAFTA ANSWER C
QUESTION Which of the following is a reason why Mercosur was temporarily suspended in 2001? A. The dotcom bust in Paraguay B. An economic crisis in Argentina C. The exit of Uruguay from the group D. The devaluation of the Mexican peso E. The Venezuelan financial crisis ANSWER B
QUESTION Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone? A. The dollar peg advocated by some members of the European Union B. The implied loss of national sovereignty to the European Central Bank C. The volatility of the euro D. The reluctance to […]
