INTB 200 FINAL 2025 |ALL QUESTIONS 100% SOLVED| VERIFIED EXAM WITH
SOLUTIONS
European Free Trade Association (EFTA)
Norway, Iceland, Liechtenstein, and Switzerland
North American Free Trade Agreement (NAFTA)
U.S., Canada, Mexico
Credited with helping create increased political stability in Mexico
Andean Community
Bolivia, Columbia, Ecuador, Peru
MERCUSOR
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
Amount of members in European Union
,European Economic Community
1957, goal of becoming a common market, formed at Treaty of Rome
Single European Act
1987, work toward establishment of a single market
Maastricht Treaty
Committed the EU to adopt a single currency
Used by 17 of 27 member states
Britain, Denmark, Sweden opted out
2007
Bulgaria and Romania joined EU
Association of Southeast Asian Nations (ASEAN)
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
France, Italy, Germany, Luxemburg, Belgium, Netherlands
Free Trade Area
Eliminates all barriers to the trade of goods and services among member countries (EFTA,
NAFTA)
Customs Union
Eliminates trade barriers between member countries and adopts a common external trade
policy (Andean community)
Common Market
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
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
A central political apparatus that coordinates the economic, social, and foreign policy of
member states (E.U. and U.S.)
, Trade diversion
Occurs when low cost producers within the free trade area replace high cost domestic
producers
Trade creation
Occurs when high cost suppliers within the free trade area replace lower cost external
suppliers
European Council
Ultimate controlling authority within the EU
European Commission
Responsible for proposing EU legislation, implementing it, and monitoring compliance with
EU laws by member states
European Parliament
Debates legislation proposed by the commission and forwarded to it by the council
Court of Justice
Supreme appeals court for EU law
SOLUTIONS
European Free Trade Association (EFTA)
Norway, Iceland, Liechtenstein, and Switzerland
North American Free Trade Agreement (NAFTA)
U.S., Canada, Mexico
Credited with helping create increased political stability in Mexico
Andean Community
Bolivia, Columbia, Ecuador, Peru
MERCUSOR
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
Amount of members in European Union
,European Economic Community
1957, goal of becoming a common market, formed at Treaty of Rome
Single European Act
1987, work toward establishment of a single market
Maastricht Treaty
Committed the EU to adopt a single currency
Used by 17 of 27 member states
Britain, Denmark, Sweden opted out
2007
Bulgaria and Romania joined EU
Association of Southeast Asian Nations (ASEAN)
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
France, Italy, Germany, Luxemburg, Belgium, Netherlands
Free Trade Area
Eliminates all barriers to the trade of goods and services among member countries (EFTA,
NAFTA)
Customs Union
Eliminates trade barriers between member countries and adopts a common external trade
policy (Andean community)
Common Market
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
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
A central political apparatus that coordinates the economic, social, and foreign policy of
member states (E.U. and U.S.)
, Trade diversion
Occurs when low cost producers within the free trade area replace high cost domestic
producers
Trade creation
Occurs when high cost suppliers within the free trade area replace lower cost external
suppliers
European Council
Ultimate controlling authority within the EU
European Commission
Responsible for proposing EU legislation, implementing it, and monitoring compliance with
EU laws by member states
European Parliament
Debates legislation proposed by the commission and forwarded to it by the council
Court of Justice
Supreme appeals court for EU law
