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67) Which of the following is the most frequently aired objection to free trade in Africa?
A) These economies are too small for free trade to exist.
B) These countries are not ready for a full-fledged political union with a common currency.
C) The countries need to be "protected" by tariff barriers from unfair foreign competition.
D) The larger nations such as South Africa and Kenya stand to lose too much from free trade and
competition.
68) The ________ represents the interests of member states and is clearly the ultimate controlling
authority within the EU.
A) European Council
B) European Parliament
C) Court of Justice
D) European Commission
69) Which of the following, adopted by the member nations of the European Community in 1987,
committed member countries to work toward the establishment of a single market by December
31, 1992?
A) Treaty of Rome
B) Single European Act
C) Treaty of Lisbon
D) Maastricht Treaty
70) How has the euro contributed to increasing competition in the European region?
A) by increasing hedging costs
B) by increasing the cost of capital
C) by making price comparisons easy
D) by enabling a common monetary policy
71) There are two main trading blocs in Europe, the European Union and the
A) Mercosur.
B) Andean Community.
C) European Free Trade Association.
D) European Council.
72) The ultimate controlling unit within the EU is the
A) European Commission.
B) European Parliament.
C) Court of Justice.
D) Council of the European Union.
73) The ________ is primarily a consultative rather than legislative body.
A) European Parliament
B) Court of Justice
C) Council of the European Union
D) European Commission
74) The establishment of the euro required participating countries to
A) first convert their currency to U.S. dollars, then to euros.
B) give up national control over monetary policy.
C) create national banks at which citizens can convert their existing currency.
D) maintain their own currency in parallel to the euro.
75) Three long-term EU members, Great Britain, ________, and Sweden, have not adopted the
euro.
A) France
B) Norway
C) Denmark
D) Greece
76) On average, studies indicate that NAFTA's overall impact has been
A) large but negative.
B) large and positive.
C) small and negative.
D) small but positive.
77) According to ________, the trade diversion effects of Mercosur outweigh its trade creation
effects.
A) Alexander Yeats
B) the majority of economists
C) Jacques Delors
D) the World Trade Organization
78) The most recent attempt to reenergize the free trade movement in Africa occurred in early
2001, when ________, Uganda, and Tanzania, member states of the East African Community
(EAC), committed themselves to relaunching their bloc, 24 years after it collapsed.
A) Sudan
B) Ethiopia
C) Kenya
D) Somalia
79) The United States, Canada, and Mexico are member nations of
A) CAFTA.
B) Mercosur.
C) the Andean Pact.
D) NAFTA.
80) Four main institutions make up the political structure of the EU. Which of them is responsible
for proposing EU legislation, implementing it, and monitoring compliance with EU laws?
A) European Council
B) Court of Justice
C) European Commission
D) European Parliament
81) Which of the following established the second largest currency zone in the world?
A) Treaty of Rome
B) Maastricht Treaty
C) Treaty of Lisbon
D) Single European Act
82) The lowering of barriers to trade and investment among countries has led to ________
throughout the EU.
A) higher costs of borrowing
B) increase prices
C) increase in hedging costs
D) increased price competition
83) Once barriers to trade and investment are removed, companies
A) can realize cost economies by centralizing production in key locations regardless of culture
differences.
B) can treat a group of integrated countries like the EU as a single market and produce
standardized products for it.
C) no longer have to deal with competitive practices that formerly limited their ability to realize
cost economies.
D) may still find it difficult to produce a standardized product for a single multiple-country market.
84) The emerging role of the ________ in competition policy suggests the EU is increasingly
willing and able to intervene and impose conditions on companies proposing mergers and
acquisitions.
A) European Commission
B) Court of Justice
C) European Council
D) European Parliament
