Chapter: Regional and International Economic Co-operation-Importance
1.

_______________ is an important reason for economic integration.

A. Geographic proximity
B. Democracy
C. Totalitarianism
D. Common law practice
Answer» A. Geographic proximity
2.

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
Answer» B. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
3.

Geographic proximity is an important reason for economic integration because consumer tastes are likely to be:

A. different.
B. opposite.
C. similar.
D. strange.
Answer» C. similar.
4.

Which of the following types of regional economic integration focuses only on eliminating internal tariffs?

A. customs union
B. common market
C. complete economic integration
D. free trade area
Answer» D. free trade area
5.

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
Answer» A. customs union
6.

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
Answer» B. common market
7.

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
Answer» C. complete economic integration
8.

_______________ 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
Answer» C. Trade creation
9.

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)
Answer» B. NAFTA (the North American Free Trade Agreement)
10.

_______________ 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
Answer» D. Trade diversion
11.

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
Answer» C. the implementation of a common currency
12.

NAFTA is a good example of:

A. trade erosion.
B. divestment.
C. retrenchment.
D. trade diversion.
Answer» D. trade diversion.
13.

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
Answer» D. United Nations
14.

Where is the headquarters of the EU?

A. Belgium
B. Netherlands
C. Luxembourg
D. Greece
Answer» A. Belgium
15.

Where is the headquarters of the SAARC?

A. Manila
B. Kathmandu
C. New Delhi
D. Jakarta
Answer» B. Kathmandu
16.

Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?

A. Nepal, Bhutan, Thailand and Singapore
B. Nepal, Bhutan, Malaysia and Maldives
C. Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan
D. None of The Above
Answer» C. Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan
17.

Which of the following is not the main purpose for formation of SAARC

A. To Combat Terrorism
B. To Promote the Welfare of the people of South Asia
C. To form mutual Defence against foreign aggression
D. None of The Above
Answer» C. To form mutual Defence against foreign aggression
18.

SAPTA is a trade agreement by _________________

A. ASEAN Nations
B. APEC Nations
C. SAARC Nations
D. EU Nations
Answer» C. SAARC Nations
19.

What is the full form of ASEAN?

A. Association of South East Asian Nations
B. Administration of South East Asian Nations
C. Administration of Southern Eastern Asian Nations
D. Organisation of South East Asian Nations
Answer» A. Association of South East Asian Nations
Tags
Question and answers in Regional and International Economic Co-operation-Importance, Regional and International Economic Co-operation-Importance multiple choice questions and answers, Regional and International Economic Co-operation-Importance Important MCQs, Solved MCQs for Regional and International Economic Co-operation-Importance, Regional and International Economic Co-operation-Importance MCQs with answers PDF download