Question :
61._____ occurs when higher-cost external producers replaced by lower-cost external : 1299352
61._____ occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area?
A.Trade creation
B.Strategic pricing
C.Value creation
D.Trade diversion
E.Protectionism
62._____ occurs when lower-cost external suppliers are replaced by higher-cost suppliers within a free trade area.
A.Trade creation
B.Strategic pricing
C.Synergy
D.Trade diversion
E.Protectionism
63.A regional free trade agreement will benefit the world only if:
A.it raises the standard of living in one of the member countries.
B.the amount of trade it creates exceeds the amount it diverts.
C.the currencies of the nations involved appreciates.
D.the balance-of-trade situation remains stable in the region.
E.it creates trade surplus for one of the countries involved.
64.The country of Argonia and the country of Berylia imposed tariffs on imports from all countries. They set up a free trade area, removing all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Argonia now begins to import sugar from Berylia. Previously, Argonia was indigenously producing sugar at a higher cost. Thus, Argonia benefits from this transaction. This is known as _____.
A.trade creation
B.strategic pricing
C.synergy
D.trade diversion
E.protectionism
65.Suppose the country of Ceria and Lithinia imposed tariffs on imports from all countries, and then they set up a free trade area, scrapping all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Now, Ceria begins to import sugar from Lithinia. However, Ceria had previously been importing sugar from another country, Cadnia, which produced sugar more cheaply than Ceria or Lithinia. This is known as _____.
A.trade creation
B.strategic pricing
C.synergy
D.trade diversion
E.protectionism
66.Which of the following are significant trade blocs in Europe?
A.The European Union and the European Free Trade Association
B.The European Federation and the European Trade Block
C.The European Commission and the COMINTERN
D.The European Federation and the European Trade Association
E.The European Economic Community and the European Federation
67.Which of the following is a factor that resulted in the establishment of the European Union (EU)?
A.The spectacular success of the North American Free Trade Agreement (NAFTA)
B.The trade impasse following the oil crisis in the 1970s that occurred due to collusion among oil producing nations
C.The devastation of Western Europe during two world wars and the desire for a lasting peace
D.The emergence of Japan as an economic and industrial superpower despite the nuclear holocaust
E.The rise of communism in Europe
68.Which of the following organizations, established in 1951, was the forerunner of the European Union?
A.European Economic Community
B.European Coal and Steel Community
C.European Agricultural and Energy Union
D.European Textiles and Agricultural Community
E.European Foundation
69.The European Community was established with the signing of the _____ in 1957.
A.Treaty of Paris
B.Treaty of Brussels
C.Treaty of Switzerland
D.Treaty of Rome
E.Treaty of Lisbon
70.The European Community became the European Union in 1993 following the ratification of the _____.
A.Maastricht Treaty
B.Warsaw Pact
C.Treaty of Rome
D.Single European Act
E.Lisbon Treaty
