Chapter 39 Trading Blocs

Chapter 39 Trading Blocs

Multiple Choice

Define trading bloc.

• Groups of countries that agree to reduce or eliminate trade barriers between themselves

• Union that adopts a common currency

• Measure of the the price of a country’s exports relative to its imports.

• refers to the value of exports minus imports.

Multiple Choice

Trading blocs do which of the following?

• Allow free movement of goods between member countries

• offer economic support to member countries

• Allow tax concessions on goods manufactured by member countries

• All of the above

Multiple Choice

Which of the following countries make up NAFTA?

• United states, Canada, Alaska

• United states, Canada, Mexico

• United states, Canada, Iceland

• United States, Alaska, Mexico

Multiple Choice

Brazil, Argentina, Uruguay, Paraguay and Venezuela​

• Mercosur
• EU
• NAFTA
• ASEAN

Multiple Choice

Which of these country is NOT a member of ASEAN?

• Cambodia

• Brunei darussalam

• Laos

• China

Multiple Choice

What is the main reason behind introducing Euro as common currency

• Promotes economic sovereignty

• Protect businesses from currency fluctuations

• allow free movement of people

• None of the above

Multiple Choice

Weakest form of economic integration is

• Preferential trade agreement

• Free trade agreement

• Customs union

• Economic Union

Multiple Choice

Which of the options below is the only characteristic of a free trade area (FTA)?

• A common currency

• Common economic policy

• No internal trade barrier

• Common external tariff

Multiple Choice

Identify custom unions.

• These are customs unions which adopt a common currency. The Eurozone is an example.

• In these trading blocs trade barriers are removed between member countries but each member can impose trade restrictions on non-members.

• These include the free movement of factors of production (e.g. labour) between member countries.

• There is free trade between member countries combined with a common external tariff on goods from countries outside the customs union.

Multiple Choice

Define common markets.

• These are customs unions which adopt a common currency. The Eurozone is an example.

• These include the free movement of factors of production (e.g. labour) between member countries.

• There is free trade between member countries combined with a common external tariff on goods from countries outside the customs union.

• In these trading blocs trade barriers are removed between member countries but each member can impose trade restrictions on non-members.