INTB 200 FINAL STUDY GUIDE
European Free Trade Association (EFTA) - Answers - Norway, Iceland, Liechtenstein,
and Switzerland
North American Free Trade Agreement (NAFTA) - Answers - U.S., Canada, Mexico
Credited with helping create increased political stability in Mexico
Andean Community - Answers - Bolivia, Columbia, Ecuador, Peru
MERCUSOR - Answers - Brazil, Argentina, Paraguay, Uruguay
Originated in 1988 as a free trade pact between Brazil and Argentina
Expanded in 1990 to include Paraguay
Expanded in 2005 to include Venezuela
May be creating trade diversion
27 - Answers - Amount of members in European Union
European Economic Community - Answers - 1957, goal of becoming a common market,
formed at Treaty of Rome
Single European Act - Answers - 1987, work toward establishment of a single market
Maastricht Treaty - Answers - Committed the EU to adopt a single currency
Used by 17 of 27 member states
Britain, Denmark, Sweden opted out
2007 - Answers - Bulgaria and Romania joined EU
Association of Southeast Asian Nations (ASEAN) - Answers - Brunei, Indonesia,
Malaysia, Philippines, Singapore, Thailand, Vietnam, Myanmar, Laos, Cambodia
Foster free trade between member countries and cooperation in their industrial policies
Founding member of EU - Answers - France, Italy, Germany, Luxemburg, Belgium,
Netherlands
Free Trade Area - Answers - Eliminates all barriers to the trade of goods and services
among member countries (EFTA, NAFTA)
Customs Union - Answers - Eliminates trade barriers between member countries and
adopts a common external trade policy (Andean community)
, Common Market - Answers - Has no trade barriers to trade between member countries,
a common external trade policy, and the free movement of the factors of production
(MERCOSUR)
Economic Union - Answers - Free flow of products and factors of production between
members, a common external trade policy, a common currency, a harmonized tax rate,
and a common monetary and fiscal policy (European Union)
Political Union - Answers - A central political apparatus that coordinates the economic,
social, and foreign policy of member states (E.U. and U.S.)
Trade diversion - Answers - Occurs when low cost producers within the free trade area
replace high cost domestic producers
Trade creation - Answers - Occurs when high cost suppliers within the free trade area
replace lower cost external suppliers
European Council - Answers - Ultimate controlling authority within the EU
European Commission - Answers - Responsible for proposing EU legislation,
implementing it, and monitoring compliance with EU laws by member states
European Parliament - Answers - Debates legislation proposed by the commission and
forwarded to it by the council
Court of Justice - Answers - Supreme appeals court for EU law
2004 - Answers - Ten countries joined, expanding the EU to 25 states
Turkey - Answers - Denied full membership because of concerns over human rights
Andean Pact - Answers - Formed in 1969 using the EU model
Re-launched in 1990, operates as a customs union
Renamed the Andean Community in 1997
Central American Trade Agreement (CAFTA) - Answers - To lower trade barriers
between the U.S. and members
CARICOM - Answers - 1973
Establish a customs union
Six members formed the Caribbean Single Market and Economy (CSME) --> 2006
Free Trade of the Americas (FTAA) - Answers - Talks began in April 1988 to establish it
by 2005
Brazil and U.S. support is now mixed
European Free Trade Association (EFTA) - Answers - Norway, Iceland, Liechtenstein,
and Switzerland
North American Free Trade Agreement (NAFTA) - Answers - U.S., Canada, Mexico
Credited with helping create increased political stability in Mexico
Andean Community - Answers - Bolivia, Columbia, Ecuador, Peru
MERCUSOR - Answers - Brazil, Argentina, Paraguay, Uruguay
Originated in 1988 as a free trade pact between Brazil and Argentina
Expanded in 1990 to include Paraguay
Expanded in 2005 to include Venezuela
May be creating trade diversion
27 - Answers - Amount of members in European Union
European Economic Community - Answers - 1957, goal of becoming a common market,
formed at Treaty of Rome
Single European Act - Answers - 1987, work toward establishment of a single market
Maastricht Treaty - Answers - Committed the EU to adopt a single currency
Used by 17 of 27 member states
Britain, Denmark, Sweden opted out
2007 - Answers - Bulgaria and Romania joined EU
Association of Southeast Asian Nations (ASEAN) - Answers - Brunei, Indonesia,
Malaysia, Philippines, Singapore, Thailand, Vietnam, Myanmar, Laos, Cambodia
Foster free trade between member countries and cooperation in their industrial policies
Founding member of EU - Answers - France, Italy, Germany, Luxemburg, Belgium,
Netherlands
Free Trade Area - Answers - Eliminates all barriers to the trade of goods and services
among member countries (EFTA, NAFTA)
Customs Union - Answers - Eliminates trade barriers between member countries and
adopts a common external trade policy (Andean community)
, Common Market - Answers - Has no trade barriers to trade between member countries,
a common external trade policy, and the free movement of the factors of production
(MERCOSUR)
Economic Union - Answers - Free flow of products and factors of production between
members, a common external trade policy, a common currency, a harmonized tax rate,
and a common monetary and fiscal policy (European Union)
Political Union - Answers - A central political apparatus that coordinates the economic,
social, and foreign policy of member states (E.U. and U.S.)
Trade diversion - Answers - Occurs when low cost producers within the free trade area
replace high cost domestic producers
Trade creation - Answers - Occurs when high cost suppliers within the free trade area
replace lower cost external suppliers
European Council - Answers - Ultimate controlling authority within the EU
European Commission - Answers - Responsible for proposing EU legislation,
implementing it, and monitoring compliance with EU laws by member states
European Parliament - Answers - Debates legislation proposed by the commission and
forwarded to it by the council
Court of Justice - Answers - Supreme appeals court for EU law
2004 - Answers - Ten countries joined, expanding the EU to 25 states
Turkey - Answers - Denied full membership because of concerns over human rights
Andean Pact - Answers - Formed in 1969 using the EU model
Re-launched in 1990, operates as a customs union
Renamed the Andean Community in 1997
Central American Trade Agreement (CAFTA) - Answers - To lower trade barriers
between the U.S. and members
CARICOM - Answers - 1973
Establish a customs union
Six members formed the Caribbean Single Market and Economy (CSME) --> 2006
Free Trade of the Americas (FTAA) - Answers - Talks began in April 1988 to establish it
by 2005
Brazil and U.S. support is now mixed
