BUAD 331: Final Exam questions with correct answers

BUAD 331: Final Exam regional economic integration - correct answer Agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other Free Trade Area - correct answer A group of countries committed to removing all barriers to the free flow of goods and services between each other Common external tariff - correct answer The policy of customs unions in which the members adopt the same tariffs toward nonmembers Customs Union - correct answer A group of countries committed to (1) removing all barriers to the free flow of goods and services between each other and (2) the pursuit of a common external trade policy. Common Market - correct answer a group of countries that acts as a single market, without trade barriers between member countries Economic Union - correct answer Having all the features of a common market, members also coordinate and harmonize economic policies (in areas such as monetary, fiscal, and taxation) to blend their economies into a single economic entity. Sovereignty of Nations - correct answer each country or sovereign nations sets the laws and regulations within its own territory and has the highest level of authority for enforcement. Bretton Woods System - correct answer Named for a conference held at Bretton Woods, New Hampshire, in 1944, this system provided the foundation for postwar economic globalization, including the World Bank and the International Monetary Fund; it established a fixed exchange rate with international currencies pegged to the U.S. dollar, which was backed by convertibility to gold