INTB 3355 Midterm Exam Questions
And Answers | Verified
/. European Court of Justice - Answer-✅Decides cases arising under the treaty of
Rome and subsequent agreements
/.Economic Integration Agreements - Answer-✅International institutions from an
international business perspective
/.Types of Economic Integration Agreements - Answer-✅- Free trade area
- Customs union
- Common market
- Complete economic integration
/.Free trade area - Answer-✅- Tariffs are abolished among members, but each
member-nation maintains its own external tariffs
- Within the FTA, restrictions generally remain on the movement of services (such as
accounting, insurance, and legal services), people (labor), and capital
EX: Association of Southeast Asian Nations (ASEAN), NAFTA
/.Customs Union - Answer-✅- An (FTA) often develops into a customs union, an
agreement that adds common external tariffs to the FTA
EX: The Southern African Customs Union (SACU), the oldest of all customs union, was
established in 1910, with South Africa, Lesotho, Namibia, Swaziland, and Botswana as
members
EX: Common market of the South (Mercosur or Mercosul): with the participation of
Argentina, Brazil, Paraguay, Uruguay, and Venezuela; and the Andean Community,
costing of Peru, Ecuador, Bolivia, and Columbia
/.Common market - Answer-✅- created when a customs union lifts restriction on the
mobility of services, people, and capital among the member-nations
- essentially a single market, so all the barriers to trade, such as standards, borders,
and taxes, become common to all members
- to achieve this excel of economic integration, ________ members establish common
economic policies, an achievement that requires political will
EX: CIS (former Societ Union) nations of Russia, Belarus, and Kazakhstan have agreed
in principle to form the _________ known as Common Economic Space (CES).
Mercosur is developing in this direction
, /.Complete economic integration - Answer-✅- Common market agreement may move
toward an economic integration, as happened with the European Union
- Integration on economic and political levels
- High degree of political integration, requires member-nations to surrender important
elements of their sovereignty
EX: EU's central bureaucracy is responsible for coordinating and harmonizing tax rates,
labor systems, education systems, and other social and legal systems for all EU
members, whole the European Central Bank developed monetary policy for all member
who have elated monetary union
/.NAFTA main goals - Answer-✅promoting economic growth by easing the movement
of goods and services between the U.S. Canada and Mexico
Launched on January 1, 1994
Implemented on January 1, 2008
/.NAFTA Precursor - Answer-✅- Canada-US Free Trade Agreement (since 1989)
- Economic growth expected & promoted
- Address immigration (economic opportunities)
- Reduce incentives to immigration to U.S
/.NAFTA stipulations - Answer-✅- removal of most tariffs and restrictions on trade
between the U.S., Canada, and Mexico
- Wide range of agreements on agricultural, textile and automotive trade
- Agreements on telecommunication and intellectual property
- Mobility of workers
- Environmental policies
/.US Concerns - Answer-✅- US: Losing manufacturing jobs to Mexico
- Mexico: US migration policies and high corn subsidies for US farmers
- The last tariffs dropped was U.S corn exports into Mexico, where many small farmers
have had transitional protection from U.S corn imports
- Canada: Energy trade policies
/.Mexico Concerns - Answer-✅- US migration policies
- High corn subsidies for US farmers
/.Canada Concerns - Answer-✅- Energy trade polices
- Losing manufacturing jobs to Mexico
And Answers | Verified
/. European Court of Justice - Answer-✅Decides cases arising under the treaty of
Rome and subsequent agreements
/.Economic Integration Agreements - Answer-✅International institutions from an
international business perspective
/.Types of Economic Integration Agreements - Answer-✅- Free trade area
- Customs union
- Common market
- Complete economic integration
/.Free trade area - Answer-✅- Tariffs are abolished among members, but each
member-nation maintains its own external tariffs
- Within the FTA, restrictions generally remain on the movement of services (such as
accounting, insurance, and legal services), people (labor), and capital
EX: Association of Southeast Asian Nations (ASEAN), NAFTA
/.Customs Union - Answer-✅- An (FTA) often develops into a customs union, an
agreement that adds common external tariffs to the FTA
EX: The Southern African Customs Union (SACU), the oldest of all customs union, was
established in 1910, with South Africa, Lesotho, Namibia, Swaziland, and Botswana as
members
EX: Common market of the South (Mercosur or Mercosul): with the participation of
Argentina, Brazil, Paraguay, Uruguay, and Venezuela; and the Andean Community,
costing of Peru, Ecuador, Bolivia, and Columbia
/.Common market - Answer-✅- created when a customs union lifts restriction on the
mobility of services, people, and capital among the member-nations
- essentially a single market, so all the barriers to trade, such as standards, borders,
and taxes, become common to all members
- to achieve this excel of economic integration, ________ members establish common
economic policies, an achievement that requires political will
EX: CIS (former Societ Union) nations of Russia, Belarus, and Kazakhstan have agreed
in principle to form the _________ known as Common Economic Space (CES).
Mercosur is developing in this direction
, /.Complete economic integration - Answer-✅- Common market agreement may move
toward an economic integration, as happened with the European Union
- Integration on economic and political levels
- High degree of political integration, requires member-nations to surrender important
elements of their sovereignty
EX: EU's central bureaucracy is responsible for coordinating and harmonizing tax rates,
labor systems, education systems, and other social and legal systems for all EU
members, whole the European Central Bank developed monetary policy for all member
who have elated monetary union
/.NAFTA main goals - Answer-✅promoting economic growth by easing the movement
of goods and services between the U.S. Canada and Mexico
Launched on January 1, 1994
Implemented on January 1, 2008
/.NAFTA Precursor - Answer-✅- Canada-US Free Trade Agreement (since 1989)
- Economic growth expected & promoted
- Address immigration (economic opportunities)
- Reduce incentives to immigration to U.S
/.NAFTA stipulations - Answer-✅- removal of most tariffs and restrictions on trade
between the U.S., Canada, and Mexico
- Wide range of agreements on agricultural, textile and automotive trade
- Agreements on telecommunication and intellectual property
- Mobility of workers
- Environmental policies
/.US Concerns - Answer-✅- US: Losing manufacturing jobs to Mexico
- Mexico: US migration policies and high corn subsidies for US farmers
- The last tariffs dropped was U.S corn exports into Mexico, where many small farmers
have had transitional protection from U.S corn imports
- Canada: Energy trade policies
/.Mexico Concerns - Answer-✅- US migration policies
- High corn subsidies for US farmers
/.Canada Concerns - Answer-✅- Energy trade polices
- Losing manufacturing jobs to Mexico
