4.1.5. Trading Blocs

Which of the following countries make up NAFTA?

• United states, Canada, Alaska

• United states, Canada, Mexico

• United states, Canada, Iceland

• United States, Alaska, Mexico

Which of these country is NOT a member of ASEAN?

• Cambodia

• Brunei darussalam

• Laos

• China

The European Union is one powerful global economic bloc. ASEAN is best described as being:

• A free trade zone

• A confederation of states

• A monetary union

• Political union

what is the main reason behind introducing Euro as common currency

• Promotes economic sovereignty

• Protect business from currency fluctuations

• allow free movement of people

• None of the above

Which of the following countries is not a member of the EU?

• Croatia

• Spain

• Malta

• Turkey

A common or single market will have all of the following features except:

• No internal trade barriers

• Common external tariff

• Factor and asset mobility

• A common currency

a customs union + single market with a single currency for some nations

• EU
• NAFTA
• Mercosur
• ASEAN

What is the purpose of NAFTA?

• To increase trade between the countries of North America

• To help Canada become a more independent nation

• To eliminate the environmental issues between the nations involved

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.

What is the name of the arrangement that formed the basis of the modern international trade system after World War II?

• World Bank

• World Trade Organization (WTO)

• General Agreement on Tariffs and Trade (GATT)

• International Trade Organization (ITO)