Chapter 10: Competing internationally

Multiple Choice

1. Which of the following is the worlds’ largest importer of services, and its largest investment host and provider?

a. USA

b. People’s Republic of China

c. European Union

d. Republic of India

2. Which of the following most accurately describes the average applied tariff for goods imported into the EU?

a. More than 70% of imports enter the EU at zero or reduced tariffs.

b. Less than 70% of imports enter the EU at zero or reduced tariffs

c. More than 80% of imports enter the EU at average global tariffs

d. About half of imports enter the EU at zero or reduced tariffs

3. As part of its Common Commercial Policy, the EU is entitled to negotiate bilateral trade partnerships and agreements with countries or regional groups of countries as one single entity. Which of the following is NOT an accurate description of the specificities of this international trade mandate?

a. Fragmentation of foreign policy due to Member States’ lack of consensus weakens EU negotiation power on the international scene.

b. The EU’s trade policy aims to simultaneously promote social and environmental standards in its policy and action.

c. The EU has exclusive trade negotiation powers in all sectors, without exception.

d. All of these are accurate; there is no inaccurate option.

4. What percentage of global international trade is estimated to be accounted for by trade in intermediary components via global value chains?

a. 60%

b. 70%

c. 80%

d. 90%

5. Which of the following countries is the EU the biggest trading partner and foreign direct investor?

a. Australia

b. Brazil

c. India

d. all of these

6. Which of the following databases information to companies exporting from the EU about import conditions in third-country markets?

a. the Foreign Tariff Conditions Database

b. the Market Access Database

c. the Preferred Trade Partner Database

d. the Free Trade Agreement Database

7. Which country, with more than 100 bilateral agreements with the EU, has the most agreements governing their economic integration?

a. Norway

b. Switzerland

c. Liechtenstein

d. Iceland

8. Which bilateral trade relationship with the EU is its strongest, accounting for almost half of global GDP, almost 30 percent of global merchandise trade, and almost 40 percent of world trade in services?

a. EU–China

b. EU–ASEAN

c. EU–USA

d. EU–MERCOSUR

9. Which of the following correctly ranks the trading partners of the EU from largest to third largest in terms of EU external exports?

a. non-EU Europe (31%), NAFTA (28%), Asia (21%)

b. Asia (31%), non-EU Europe (28%), NAFTA (21%)

c. NAFTA (31%), Asia (28%), non-EU Europe (21%)

d. non-EU Europe (31%), Asia (28%), NAFTA (21%)

10. Which of the following regional integration projects is arguably most comparable to the EU in its characteristics, ambitions and relative degree of progress amongst those presented below?

a. North American Free Trade Area

b. Association of South-East Asian Nations

c. Southern African Development Community

d. MERCOSUR