QUESTION The stated aim of the Asia-Pacific Economic Cooperation is to increase multilateral cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region. Indicate whether the statement is true or false. ANSWER TRUE The Asia-Pacific Economic Cooperation (APEC) was founded in 1990 at the suggestion of […]
QUESTION Since the number of trade groups in the African continent is impressive, progress toward the establishment of meaningful trade blocs has been fast. Indicate whether the statement is true or false. ANSWER FALSE There are now nine trade blocs on the African continent. Many countries are members of more than one group. Although […]
QUESTION In theory, the World Trade Organization rules should ensure that a free trade agreement results in trade diversion. Indicate whether the statement is true or false. ANSWER FALSE In theory, the World Trade Organization rules should ensure that a free trade agreement does not result in trade diversion. These rules allow free trade […]
QUESTION The creation of a single market through regional economic integration offers significant opportunities because markets that were formerly protected from foreign competition are increasingly open. Indicate whether the statement is true or false. ANSWER TRUE The creation of a single market through regional economic integration offers significant opportunities because markets that were formerly […]
QUESTION With the signing of the Treaty of Rome in 1957, the European Free Trade Association was established. Indicate whether the statement is true or false. ANSWER FALSE With the signing of the Treaty of Rome in 1957, the European Community was established. The name changed again in 1993 when the European Community became […]
QUESTION An advantage of the emergence of single markets is that the lowering of barriers to trade and investment among countries has led to decreased price competition throughout the European Union. Indicate whether the statement is true or false. ANSWER FALSE Just as the emergence of single markets creates opportunities for business, it also […]
QUESTION The European Council is composed of one representative from the government of each member-state but the membership varies depending on the topic being discussed. Indicate whether the statement is true or false. ANSWER TRUE The European Council represents the interests of member-states. The council is composed of one representative from the government of […]
QUESTION Which of the following refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other? A. Regional economic integration B. Cross-cultural integration C. Zoning agreement D. Administrative trade policies E. Balance-of-trade equilibrium […]
QUESTION The European Commission is the ultimate controlling authority within the European Union because draft legislation from the commission can become EU law only if the council agrees. Indicate whether the statement is true or false. ANSWER FALSE The European Commission is responsible for proposing European Union (EU) legislation, implementing it, and monitoring compliance […]
QUESTION Which of the following is true with regard to regional economic integration? A. Agreements designed to promote freer trade within regions have failed to produce gains from trade for all member countries. B. World Trade Organization members are not required to notify the organization of any regional trade agreements in which they participate. C. […]
