Top 50+ Solved Regional and International Economic Co-operation-Importance MCQ Questions Answer
Q. _______________ is an important reason for economic integration.
a. Geographic proximity
b. Democracy
c. Totalitarianism
d. Common law practice
Q. Neighboring countries tend to collaborate for all of the following reasons EXCEPT:
a. the distance that goods need to travel between such countries is short
b. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
c. consumers’ tastes are likely to be similar, and distribution channels can be easily established in adjacent countries
d. neighboring countries may have a common history and interests, and may be more willing to coordinate their policies
Q. Geographic proximity is an important reason for economic integration becauseconsumer tastes are likely to be:
a. different.
b. opposite.
c. similar.
d. strange.
Q. Which of the following types of regional economic integration focuses only oneliminating internal tariffs?
a. customs union
b. common market
c. complete economic integration
d. free trade area
Q. In which of the following types of regional economic integration are internal tariffs eliminated with member countries levying a common external tariff on goods being
a. customs union
b. free trade area
c. common market
d. complete economic integration
Q. A _______________ focuses on eliminating internal tariffs with member countries levying a common external tariff on goods being imported from nonmembers. Additionally, this type of regional economic integration allows free mobility of production factors such as labor and capital.
a. free trade area
b. common market
c. customs union
d. complete economic integration
Q. In _______________, countries focus on eliminating internal tariffs among member countries, have a common external trading policy among nonmembers, allow free mobility of productions factors within member countries, and adopt common economic policies.
a. free trade area
b. customs union
c. complete economic integration
d. common market
Q. _______________ occurs when production shifts to more efficient producers for reasons of comparative advantage, allowing consumers access to more goods at a lower price than would have been possible without integration.
a. Trade diversion
b. Divestment
c. Trade creation
d. Retrenchment
Q. Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner?
a. CEFTA (the Central European Free Trade Agreement)
b. NAFTA (the North American Free Trade Agreement)
c. ASEAN (Association of South East Asian Nations)
d. EU (the European Union)
Q. _______________ occurs when trade shifts to countries in the group at the expense of trade with countries not in the group, even though the nonmember country might be more efficient in the absence of trade barriers.
a. Trade creation
b. Divestment
c. Retrenchment
d. Trade diversion
Q. NAFTA calls for all of the following EXCEPT:
a. the harmonization of trade rules
b. the liberalization of restrictions on services
c. the implementation of a common currency
d. the liberalization of restrictions on foreign investment
Q. NAFTA is a good example of:
a. trade erosion.
b. divestment.
c. retrenchment.
d. trade diversion.
Q. The _______________ is a political organization comprised of 185 countries, and it is headquartered in New York City. This organization deals with a variety of political issues, such as security and world peace, but it also deals in humanitarian and economic issues.
a. World Trade Organization
b. World Bank
c. European Union
d. United Nations