Question 1

Why is the European Council said to be the ultimate controlling authority within the EU?

Accepted Answer

A)   Since it is responsible for implementing EU legislation and monitoring compliance with EU laws by member states
B)   Since its role in setting competition policy is becoming increasingly important to business
C)   Since it has the right to vote on the appointment of commissioners
D)   Since draft legislation from the commission can become EU law only if the council agreesE) None of the above
F) A) and B)

Question 2

The emerging role of the European Commission in competition policy suggests the EU is increasingly willing and able to intervene and impose conditions on companies proposing mergers and acquisitions.

Accepted Answer

A) True 
 B)False

Question 3

The European Union is an example of a perfect economic union.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a reason why Turkey is not yet a member of the EU?

Accepted Answer

A)   Because only about 10 percent of Turkey's international trade is with the EU.
B)   Because of concerns over human rights issues in the country.
C)   Because the country has yet to form a customs union with the EU.
D)   Because of Turkey's weak economy.E) A) and C)
F) A) and B)

Question 5

Discuss the opportunities arising from the creation of the EU for international businesses.

Accepted Answer

The creation of a single market through ...

Question 6

To exploit the opportunities presented by the EU, non-EU firms must establish EU subsidiaries.

Accepted Answer

A) True 
 B)False

Question 7

The East African Community (EAC) has been a successful integration effort in Africa during the last three decades.

Accepted Answer

A) True 
 B)False

Question 8

The Council of the European Union is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Accepted Answer

A) True 
 B)False

Question 9

Bolivia, Peru, Ecuador, Columbia, and Venezuela are all members of:

Accepted Answer

A)   Mercosur.
B)   NAFTA.
C)   APEC.
D)   the Andean Pact.E) B) and C)
F) All of the above

Question 10

According to Alexander Yeats:

Accepted Answer

A)   the trade diversion effects of Mercosur outweigh its trade creation effects.
B)   the fastest growing items in intra-Mercosur trade were capital-intensive goods produced efficiently in the member countries.
C)   Mercosur countries will be able to compete globally once the group's external trade barriers come down.
D)   the customs union is becoming more perfect over time.E) C) and D)
F) A) and D)

Question 11

What is the political case for integration? How did political arguments influence the establishment of the European Union?

Accepted Answer

Linking neighboring economies and making...

Question 12

Which of the following is true of ASEAN?

Accepted Answer

A)   China, India, South Korea, and Singapore are among its members.
B)   Collectively, the member states account for about 55 percent of world trade.
C)   It is slowly progressing toward establishing a free trade zone.
D)   It has been successful in fulfilling its basic objective of fostering freer trade between member countries.E) None of the above
F) C) and D)

Question 13

Which of the following was the outcome of the Treaty of Lisbon signed in 2007?

Accepted Answer

A)   It established the European Community.
B)   It resulted in the adoption of the Euro.
C)   It changed the name of the European Community to the European Union.
D)   It increased the power of the European Parliament.E) A) and C)
F) None of the above

Question 14

How will EU countries benefit from the establishment of a single currency? What, if any, are the costs of a single currency?

Accepted Answer

There were several reasons that promoted...

Question 15

Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of?

Accepted Answer

A)   A customs union
B)   An economic union
C)   A common market
D)   A Free trade areaE) B) and C)
F) All of the above

Question 16

How easy is it for countries to integrate?

Accepted Answer

Even with strong economic and political ...

Question 17

What was the main objection raised by those in the United States and Canada who opposed the ratification of the NAFTA?

Accepted Answer

A)   Job losses
B)   Balance of payment problems
C)   Threat of competition from Asian companies
D)   Threat of a loss of national sovereigntyE) B) and D)
F) None of the above

Question 18

Which feature of a common market differentiates it from a customs union?

Accepted Answer

A)   Harmonization of members' tax rates
B)   A common currency
C)   A common external trade policy toward nonmembers
D)   Ability of factors of production to move freely between membersE) C) and D)
F) All of the above

Question 19

The Asia-Pacific Economic Cooperation was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following observations pertaining to the EU's Court of Justice is incorrect?

Accepted Answer

A)   It is comprised of one judge from each country.
B)   It is the supreme appeals court for EU law.
C)   Its judges are required to act as representatives of national interests.
D)   A member country can bring other members to the court for failing to meet EU treaty obligations.E) None of the above
F) B) and C)

Exam 9: Regional Economic Integration

Why is the European Council said to be the ultimate controlling authority within the EU?

Correct AnswerverifiedShow Answer

Discuss the opportunities arising from the creation of the EU for international businesses.

Correct AnswerverifiedThe creation of a single market through ...View AnswerShow Answer

Bolivia, Peru, Ecuador, Columbia, and Venezuela are all members of:

Correct AnswerverifiedShow Answer

How easy is it for countries to integrate?

Correct AnswerverifiedEven with strong economic and political ...View AnswerShow Answer

What is the political case for integration? How did political arguments influence the establishment of the European Union?

Correct AnswerverifiedLinking neighboring economies and making...View AnswerShow Answer

Which feature of a common market differentiates it from a customs union?

Correct AnswerverifiedShow Answer

What was the main objection raised by those in the United States and Canada who opposed the ratification of the NAFTA?

Correct AnswerverifiedShow Answer

How will EU countries benefit from the establishment of a single currency? What, if any, are the costs of a single currency?

Correct AnswerverifiedThere were several reasons that promoted...View AnswerShow Answer

The Asia-Pacific Economic Cooperation was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

Correct AnswerverifiedShow Answer

To exploit the opportunities presented by the EU, non-EU firms must establish EU subsidiaries.

Correct AnswerverifiedShow Answer

Which of the following is a reason why Turkey is not yet a member of the EU?

Correct AnswerverifiedShow Answer

The Council of the European Union is responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

Correct AnswerverifiedShow Answer

Which of the following is true of ASEAN?

Correct AnswerverifiedShow Answer

Which of the following was the outcome of the Treaty of Lisbon signed in 2007?

Correct AnswerverifiedShow Answer

The emerging role of the European Commission in competition policy suggests the EU is increasingly willing and able to intervene and impose conditions on companies proposing mergers and acquisitions.

Correct AnswerverifiedShow Answer

According to Alexander Yeats:

Correct AnswerverifiedShow Answer

Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of?

Correct AnswerverifiedShow Answer

The European Union is an example of a perfect economic union.

Correct AnswerverifiedShow Answer

The East African Community (EAC) has been a successful integration effort in Africa during the last three decades.

Correct AnswerverifiedShow Answer

Which of the following observations pertaining to the EU's Court of Justice is incorrect?

Correct AnswerverifiedShow Answer

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The creation of a single market through ...
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Even with strong economic and political ...
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Linking neighboring economies and making...
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Correct Answer
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There were several reasons that promoted...
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Correct Answer
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