INTB 200 FINAL QUESTIONS AND ANSWERS
What is a regional cooperation group? Give an example. - Answers - when two or more
countries within a geographic region form an alliance to reduce barriers to trade and
investment;
the final goal in a regional cooperation group is to ultimately remove tariffs and non-tariff
barriers to trade
Example(s): ASEAN (the Association for Southeast Asian Nations), SAARC (the South
Asia Area for Regional Cooperation)
What is added to a regional cooperation group to become a free trade area/agreement?
- Answers - Free Trade Area: tariffs are abolished among the members of the free trade
agreement
Free Trade Agreement: a formal agreement between two or more countries to reduce or
eliminate tariffs, quotas, and barriers to trade in products and services
(a formal agreement is added)
Note: member nations maintain their own trade restrictions with non-member nations
Example(s): EU and Mexico, NAFTA, European Free Trade Agreememnt
What is added to a free trade agreement to become a common market? - Answers -
Customs Union: country of origin requirements, rules, and regulations requirements for
country of origin markings no longer apply; adds common external tariffs to the free
trade agreements
Example(s): the Indian community, the Andean pact (Bolivia, Chile, Ecuador, Columbia,
and Peru), African Customs Union (South Africa, Lesotho, Namibia, Swaziland,
Botswana)
What is added to a customs union to become a common market? - Answers - Customs
Union: all the restrictions of a customs union, but restrictions are lifted on mobility of
services, people, and capital; factors of production allowed to move freely among
member states; capital, labor, technology allowed to move freely among member
nations
pursuit of common external trade policy
Example(s): East African Common Market, European Union,
,What is added to a common market to become a political union? - Answers - Political
Union: a central political apparatus that coordinates economic, social, and foreign
policy; a state made up of smaller states
Example(s): United States, Greece
What is the difference between an alliance and a union? - Answers - an alliance is
countable, an union is not
Environmental Scanning - Answers - a company looks around the world for changes
Market Screening - Answers - a company looks at environments to eliminate less
desirable markets
Country Screening - Answers - use countries as basis for market selection
Segment Screening - Answers - use market segments within a country; analysis of
groups and consumers
Benchmarking - Answers - method of screening
comparing one country to another
Cluster Analysis - Answers - divides objects into groups so each group is similar; either
countries or population segments
Six Steps of Market Analysis - Answers - 1. Initial Screening:
2. Second Screening: economic and financial forces
3. Third Screening: political and legal forces
4. Fourth Screening: social and cultural forces
5. Fifth Screening: competitive forces
6. Sixth Screening: personal visit and research in local market
Primary Data - Answers - original information collected specifically for a particular
project
Secondary Data - Answers - information that already exists from a third party
Physical Features of an area include: - Answers - location
topography
climate
natural resources
energy
Location - Answers - the location of a nation can provide a firm with hints/details
regarding the political environment in which the firm will be operating and the availability
of factors and resources
, Topography - Answers - the surface features of a country can impede the flow of goods
moving across a country; they can have a significant impact on the distribution channels
and capabilities of a firm within a country
Climate - Answers - affects what people can do by setting the limits on what can be
accomplished both physically and economically
Natural Resources - Answers - questions to be considered:
1. can you get to them
2. what do people do with them
3. can they be used economically and profitably?
Energy - Answers - what type of energy does a country use?
Non-Renewable Energy - Answers - fossil fuels: petroleum, coal, natural gas
Renewable Energy - Answers - nuclear energy (dangerous)
hydro electric
wind
solar
geothermal
Ethanol - Answers - use of plants
biomass fuel created through photosynthesis
Fracking - Answers - using high-pressured water to split subterranean rocks; natural
gasses released rise to the surface
Kyoto Protocol - Answers - an international agreement
united nations framework convention on climate change (1992)
committed all parties to setting internationally binding greenhouse emissions reductions
targets
(failed because US and China wouldn't sign on)
What is Transparency International's mission statement? - Answers - stop corruption,
promote transparency, accountability, and integrity at all levels and across all sectors of
society
What is Transparency Internationals core values? - Answers - transparency
accountability
integrity
solidarity
courage
justice
democracy
What is a regional cooperation group? Give an example. - Answers - when two or more
countries within a geographic region form an alliance to reduce barriers to trade and
investment;
the final goal in a regional cooperation group is to ultimately remove tariffs and non-tariff
barriers to trade
Example(s): ASEAN (the Association for Southeast Asian Nations), SAARC (the South
Asia Area for Regional Cooperation)
What is added to a regional cooperation group to become a free trade area/agreement?
- Answers - Free Trade Area: tariffs are abolished among the members of the free trade
agreement
Free Trade Agreement: a formal agreement between two or more countries to reduce or
eliminate tariffs, quotas, and barriers to trade in products and services
(a formal agreement is added)
Note: member nations maintain their own trade restrictions with non-member nations
Example(s): EU and Mexico, NAFTA, European Free Trade Agreememnt
What is added to a free trade agreement to become a common market? - Answers -
Customs Union: country of origin requirements, rules, and regulations requirements for
country of origin markings no longer apply; adds common external tariffs to the free
trade agreements
Example(s): the Indian community, the Andean pact (Bolivia, Chile, Ecuador, Columbia,
and Peru), African Customs Union (South Africa, Lesotho, Namibia, Swaziland,
Botswana)
What is added to a customs union to become a common market? - Answers - Customs
Union: all the restrictions of a customs union, but restrictions are lifted on mobility of
services, people, and capital; factors of production allowed to move freely among
member states; capital, labor, technology allowed to move freely among member
nations
pursuit of common external trade policy
Example(s): East African Common Market, European Union,
,What is added to a common market to become a political union? - Answers - Political
Union: a central political apparatus that coordinates economic, social, and foreign
policy; a state made up of smaller states
Example(s): United States, Greece
What is the difference between an alliance and a union? - Answers - an alliance is
countable, an union is not
Environmental Scanning - Answers - a company looks around the world for changes
Market Screening - Answers - a company looks at environments to eliminate less
desirable markets
Country Screening - Answers - use countries as basis for market selection
Segment Screening - Answers - use market segments within a country; analysis of
groups and consumers
Benchmarking - Answers - method of screening
comparing one country to another
Cluster Analysis - Answers - divides objects into groups so each group is similar; either
countries or population segments
Six Steps of Market Analysis - Answers - 1. Initial Screening:
2. Second Screening: economic and financial forces
3. Third Screening: political and legal forces
4. Fourth Screening: social and cultural forces
5. Fifth Screening: competitive forces
6. Sixth Screening: personal visit and research in local market
Primary Data - Answers - original information collected specifically for a particular
project
Secondary Data - Answers - information that already exists from a third party
Physical Features of an area include: - Answers - location
topography
climate
natural resources
energy
Location - Answers - the location of a nation can provide a firm with hints/details
regarding the political environment in which the firm will be operating and the availability
of factors and resources
, Topography - Answers - the surface features of a country can impede the flow of goods
moving across a country; they can have a significant impact on the distribution channels
and capabilities of a firm within a country
Climate - Answers - affects what people can do by setting the limits on what can be
accomplished both physically and economically
Natural Resources - Answers - questions to be considered:
1. can you get to them
2. what do people do with them
3. can they be used economically and profitably?
Energy - Answers - what type of energy does a country use?
Non-Renewable Energy - Answers - fossil fuels: petroleum, coal, natural gas
Renewable Energy - Answers - nuclear energy (dangerous)
hydro electric
wind
solar
geothermal
Ethanol - Answers - use of plants
biomass fuel created through photosynthesis
Fracking - Answers - using high-pressured water to split subterranean rocks; natural
gasses released rise to the surface
Kyoto Protocol - Answers - an international agreement
united nations framework convention on climate change (1992)
committed all parties to setting internationally binding greenhouse emissions reductions
targets
(failed because US and China wouldn't sign on)
What is Transparency International's mission statement? - Answers - stop corruption,
promote transparency, accountability, and integrity at all levels and across all sectors of
society
What is Transparency Internationals core values? - Answers - transparency
accountability
integrity
solidarity
courage
justice
democracy
