International Marketing Chapter 10

ECOWAS, SADC, and EAC are active regional cooperative groups in

Africa.

The most fully integrated form of regional cooperation is a

political union.

What is a basic requisite for the development of a supranational market arrangement?

political amenability among countries

A ________ is an intermediate step in the transition from a free trade area to a common market.

customs union

Multinational market groups form

large markets that provide potentially significant opportunities for international business.

What is true of the Maastricht Treaty?

It allows for the free movement of goods throughout the member states of the European Union.

The first Soviet republics to declare independence from the Soviet Union were

the Baltic states.

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. What best describes the primary way market opportunities are enlarged by economic unions?

preferential tariff treatment for participating members

The Treaty of ________ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers.

Rome

What is a provision of the commonwealth agreement signed by the Commonwealth of Independent States?

to keep the ruble but allow new currencies

What type of political union is mostly based on economic history and a sense of tradition?

commonwealth

One of the long-term challenges facing the European Union in the next 50 years is

deciding about further enlargement.

The various legal instruments used by the European Union

have the authority to issue regulations that bind the member states directly.

What is one of the multilateral free trade agreements signed by the United States?

NAFTA

With respect to the political factors that affect supranational markets, ________ is one of the most cherished possessions of any nation.

state sovereignty

Which statement is true about the European Parliament?

It has extensive budgetary powers that allow it to be involved in major EU expenditures.

A ________ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.

customs union

Which level of economic integration has no restrictions on internal trade and free flow of capital among member nations and lacks only political unity to become a political union?

common market

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called

multinational market regions.

The Economic and Monetary Union provision of the Maastricht Treaty established the parameters for the creation of the

euro.

What long-term challenge is the European Union facing?

limiting the political aspects of the Union

What is true of the European Court of Justice?

Its decisions are final and cannot be appealed in national courts.

The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the

European Union.

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of

capitalism.

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share ________ and are commonly aware of being European.

a long-established Christian heritage

Which is the trade group that is part of Europe and Asia, has emerged and persisted since the dissolution of the Soviet Union, and is composed of all the republics except the Baltic states?

the Commonwealth of Independent States

What is a requisite for the survival of any economic union?

having agreements and mechanisms in place in order to settle economic disputes

Which country rejected the euro, causing a debate about the EU's future?

Denmark

Which institution has the responsibility to debate and decide which proposals of the Single European Act to accept as binding on European Union members?

the Council of Ministers

What is a reason for East Asia's economic success?

the emphasis placed on education and healthcare

Britain and countries that were formerly part of the British Empire are an example of a ________ of nations.

commonwealth

The ________ is the decision-making body of the European Union that can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote.

Council of Ministers

Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing postcommunist market reforms. As a result,

new business opportunities are emerging in this region.

The Commonwealth of Independent States is

an economic and political alliance with open borders but no central government.

Though now disbanded, what agreement was considered to be the most notable enforced political union of the last 40 years?

COMECON

The ________ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members.

Amsterdam Treaty

Which treaty allows for the free movement of goods, persons, services, and capital throughout the member states of the European community?

Maastricht Treaty

The World Trade Organization is wholly dedicated to

improving the efficiency of trade among nations.

What makes the South African market an important base for serving nearby African markets that are too small to be considered individually?

the South African market's developed infrastructure

Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and

wrestling with inflation.

One of the first factors that gave the European Union an edge over others in the process of becoming a common market was a

well-developed transportation network.

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here?

The European Economic Community.