International Marketing Chapter 3

20 Questions - Developed by:
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  • 1
    GATT (General Agreement on Tariffs and Trade) it'self had no enforcement power, and the losing party in a dispute was entitled to ignore the ruling.
  • 2
    The WTO promotes free trade on a global basis.
  • 3
    It is customary for countries to notify the WTO when they enter into preferential trade agreements.

  • 4
    The ultimate goal of a free trade agreement is to have standardized duties on goods that cross borders between the partners.
  • 5
    A free trade area represents the most fully developed form of preferential trade agreement among nations.
  • 6
    About 50% of global trade takes place among nations linked by free trade areas.

  • 7
    In October 2011, the United States Congress finally ratified the long-delayed free trade areas with South Korea, Panama, and Colombia.
  • 8
    A Customs Union represents the most fully developed form of preferential trade agreement among nations.
  • 9
    In addition to eliminating internal barriers to trade, members of a customs union agree to the establishment of common external tariffs.
  • 10
    In a Common Market there are no internal barriers to trade, and it allows for free movement of factors of production such as labor and capital.

  • 11
    Under Economic Union, a doctor or lawyer qualified in one country can practice in another member country.
  • 12
    Economic Union stands at the top of the pyramid in the hierarchy of Preferential Trade Agreements.
  • 13
    In spite of NAFTA creating a free trade area, Mexican avocado growers can only ship their fruit to the United States during the winter months, and only to states in the northeast subject to a quota of $30 million worth of avocados per year.
  • 14
    NAFTA ensures that any product for sale in the U.S., Mexico, and Canada bearing a certificate of origin qualifies for tariff reduction.
  • 15
    Despite trade agreements, attempts to achieve integration in Central America have been described as uncoordinated, inefficient, and costly. There are still tariffs on imports of sugar, coffee, and alcoholic beverages.
  • 16
    The objective of the EU member countries is to harmonize national laws and regulations so that goods, services, people, and eventually money can flow freely across national boundaries.

  • 17
    In May 1998, eleven charter members of the eurozone were chosen, which included Greece.
  • 18
    Movements such as "the Arab Spring" have forced some of the regional leaders to make economic and political concessions.
  • 19
    The six countries in the Gulf Cooperation Council (GCC) hold about 45% of the world's known oil reserves, but production is only about 18% of world oil output.
  • 20
    Saudi Arabia, a major oil-producing nation, posted current-account deficits since they must import most of the goods and services.

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