BUS 357 Week 2 quiz
Question 1
pts
The three major responsibilities of the are legislative power, control over the budget,
and supervision of executive decisions.
European Court of Justice
European Parliament
European Council
European Commission
Question 2
pts
A disadvantage for foreign multinationals operating in the European Union is that .
they can only choose one country in which to establish production facilities, even though they
are allowed to ship products to individual countries duty free
not all countries use the euro
the EU does not have trade agreements with countries outside of the EU since it is a customs
union
since all countries use the euro, it is hard to use currency as a way to differentiate between
markets
Question 3
pts
Assume that U.S. companies are importing the same product from Mexico and Taiwan. The
United States enters into an FTA with Mexico but not with Taiwan. Consequently, the United
States begins to import more goods from Mexico (due to lower tariffs) than from Taiwan, even
though the Mexican products may not be any better or cheaper. This is an example of .
trade diversion
trade creation
,
Question 1
pts
The three major responsibilities of the are legislative power, control over the budget,
and supervision of executive decisions.
European Court of Justice
European Parliament
European Council
European Commission
Question 2
pts
A disadvantage for foreign multinationals operating in the European Union is that .
they can only choose one country in which to establish production facilities, even though they
are allowed to ship products to individual countries duty free
not all countries use the euro
the EU does not have trade agreements with countries outside of the EU since it is a customs
union
since all countries use the euro, it is hard to use currency as a way to differentiate between
markets
Question 3
pts
Assume that U.S. companies are importing the same product from Mexico and Taiwan. The
United States enters into an FTA with Mexico but not with Taiwan. Consequently, the United
States begins to import more goods from Mexico (due to lower tariffs) than from Taiwan, even
though the Mexican products may not be any better or cheaper. This is an example of .
trade diversion
trade creation
,
