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. […]
QUESTION The European Parliament, which meets in Strasbourg, France, is primarily a legislative rather than consultative body. Indicate whether the statement is true or false. ANSWER FALSE The European Parliament, which meets in Strasbourg, France, is primarily a consultative rather than legislative body. It debates legislation proposed by the commission and forwarded to it […]
QUESTION The European Parliament is responsible for proposing European Union (EU) legislation, implementing it, and monitoring compliance with EU laws by member-states. Indicate whether the statement is true or false. ANSWER FALSE The European Parliament, which meets in Strasbourg, France, is primarily a consultative rather than legislative body. It debates legislation proposed by the […]
QUESTION By adopting the euro, the European Union has created the second most widely traded currency in the world after that of the U.S. dollar. Indicate whether the statement is true or false. ANSWER TRUE By adopting the euro, the European Union has created the second most widely traded currency in the world after […]
QUESTION A disadvantage of the euro is that the development of a pan-European, euro-denominated capital market will decrease the range of investment options open to both individuals and institutions. Indicate whether the statement is true or false. ANSWER FALSE An advantage of the euro is that the development of a pan-European, euro-denominated capital market […]
QUESTION The Andean Community now operates as a customs union. Indicate whether the statement is true or false. ANSWER TRUE In 1990, the heads of the five current members of the Andean Community—Bolivia, Ecuador, Peru, Colombia, and Venezuela—met in the Galápagos Islands. The resulting Galápagos Declaration effectively relaunched the Andean Pact, which was renamed […]
QUESTION Since its establishment in January 1, 1999, the euro has steadily appreciated against the U.S. dollar, reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone. Indicate whether the statement is true or false. ANSWER FALSE Since its establishment in January 1, 1999, the euro has a […]
QUESTION In a customs union, a common currency is adopted. Indicate whether the statement is true or false. ANSWER FALSE A customs union eliminates trade barriers between member countries and adopts a common external trade policy. Establishment of a common external trade policy necessitates significant administrative machinery to oversee trade relations with nonmembers. It […]
