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Regional Economic Grouping Solved MCQs

in International Business

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Master of Commerce (M.com) .

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Chapter: Regional Economic Grouping

1.	The basic objective of export Promotion Council is to promote and develop the Exports of the
A.	particular products of country
B.	only attractive projects of the country
C.	only services industry products of the country.
D.	overall exports of the country.
Answer» D. overall exports of the country.

discuss

2.	The main promoter of trade liberalization was
A.	gatt
B.	nafta
C.	cepta
D.	cisa
Answer» A. gatt

discuss

3.	_______________ is an important reason for economic integration.
A.	geographic proximity
B.	democracy
C.	totalitarianism
D.	common law practice
Answer» A. geographic proximity

discuss

4.	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 imported from nonmembers.
A.	customs union
B.	free trade area
C.	common market
D.	complete economic integration
Answer» A. customs union

discuss

5.	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

discuss

6.	_______________ 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

discuss

7.	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)

discuss

8.	_______________ 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

discuss

9.	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

discuss

10.	NAFTA is a good example of:
A.	trade erosion.
B.	divestment.
C.	retrenchment.
D.	trade diversion.
Answer» D. trade diversion.

discuss

11.	Where is the headquarters of the EU?
A.	belgium
B.	netherlands
C.	luxembourg
D.	greece
Answer» A. belgium

discuss

12.	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

discuss

13.	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 defense against foreign aggression
D.	none of the above
Answer» C. to form mutual defense against foreign aggression

discuss

14.	SAPTA is a trade agreement by _________________
A.	asean nations
B.	apec nations
C.	saarc nations
D.	eu nations
Answer» C. saarc nations

discuss

15.	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

discuss

16.	The European Union is a free trade association that is based on a(n)
A.	economic and monetary union.
B.	economic union.
C.	monetary union.
D.	a commonly agreed upon list of lowered tariffs.
Answer» A. economic and monetary union.

discuss

17.	Which one of the following has a single currency managed by a common central bank?
A.	asean
B.	european union
C.	world trade organization
D.	the organization for economic cooperation and development
Answer» B. european union

discuss

18.	Which one of the following is renowned for its high-quality databases on economic and social data?
A.	wto
B.	eu
C.	oecd
D.	world bank
Answer» C. oecd

discuss

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Regional Economic Grouping Solved MCQs

The basic objective of export Promotion Council is to promote and develop the Exports of the

The main promoter of trade liberalization was

_______________ is an important reason for economic integration.

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 imported from nonmembers.

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.

_______________ 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.

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?

_______________ 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.

NAFTA calls for all of the following EXCEPT:

NAFTA is a good example of:

Where is the headquarters of the EU?

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

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

SAPTA is a trade agreement by _________________

What is the full form of ASEAN?

The European Union is a free trade association that is based on a(n)

Which one of the following has a single currency managed by a common central bank?

Which one of the following is renowned for its high-quality databases on economic and social data?

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.

_______________ 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.

_______________ 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.