International Organizations

International Organizations

Review Activity

European Union (EU)

• Founded: November 1, 1993

  Political and economic union made up of 28 European members

• Eliminates all border controls between members

• Promotes free movement of people, goods, services, and capital within the internal market, maintain common policies on trade, and agriculture, provides technology 

Multiple Choice

What has been a major success of the European Union (EU) in recent years?

• the creation of a single military force

• the rejection of national sovereignty

• the elimination of trade barriers

• the adoption of a single language

North American Free Trade Agreement

• Deal between USA, Canada and Mexico founded January 1, 1994

• Remove tariffs to the exchange of goods and services

• Advantages: Trade grew, lower prices on goods/services, increased jobs 

• Disadvantages: US jobs were lost, Mexican farmers lost their jobs, workers are exploited

Multiple Choice

What was one criticism regarding the passage of the North American Free Trade Agreement (NAFTA)?

• U.S. tariffs would decrease profits

• U.S. companies would move jobs abroad

• Outsourced labor would increase prices of goods

• Establishment of similar treaties would hinder economic growth

Multiple Choice

In 1990, 6 percent of the fruits and vegetables available in the United States came from Mexico and Canada. In 2007, that percentage had increased to about 12 percent.

Based on this information, which statement best describes a benefit of the 1994 North American Free Trade Agreement

• a reduction in tariffs encourages an increase in trade

• a limited membership results in increased prices for trade goods

• trade agreements require improvements in exchange rates

• trade agreements protect domestic industries through subsidies