GLOBUS EXAM 1 FINAL PAPER 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
●● Mercosur.
Answer: Pact among Argentina, Brazil, Paraguay, and Uruguay to
establish a free trade area
●● Levels of Economic Integration.
Answer: 1. Free Trade Area
2. Customs Union
3. Common Market
4. Economic Union
5. Political Union
●● rules of origin.
Answer: A certain percentage of the value of a good has to be produced
by countries within the free trade area.
●● EFTA (European Free Trade Association).
Answer: A free trade association including Norway, Iceland,
Liechtenstein, and Switzerland. Non EU members
,●● customs union.
Answer: eliminates trade barriers between member countries and adopts
a common external trade policy
●● common market.
Answer: no barriers to trade between member countries, a common
external trade policy, and the free movement of the factors of production
●● Free Trade Area.
Answer: A zone in which there are no tariffs or other restrictions on the
movement of goods and services across borders
●● economic union.
Answer: A group of countries committed to (1) removing all barriers to
the free flow of goods, services, and factors of production between each
other, (2) the adoption of a common currency, (3) the harmonization of
tax rates, and (4) the pursuit of a common monetary and fiscal policy.
●● political union.
Answer: a central political apparatus coordinates economic, social, and
foreign policy
●● trade creation.
, Answer: occurs when high-cost domestic producers are replaced by low-
cost producers within the free trade area
●● trade diversion.
Answer: occurs when lower-cost external suppliers are replaced by
higher-cost suppliers within the free trade area
●● Treaty of Rome.
Answer: the 1957 treaty that established the European Community
●● European Commission.
Answer: Responsible for proposing EU legislation, implementing it, and
monitoring compliance
●● European Council.
Answer: the ultimate controlling authority within the EU
●● European Parliament.
Answer: debates legislation proposed by the commission and forwarded
to it by the council
●● Treaty of Lisbon.
COMPLETE QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
●● Mercosur.
Answer: Pact among Argentina, Brazil, Paraguay, and Uruguay to
establish a free trade area
●● Levels of Economic Integration.
Answer: 1. Free Trade Area
2. Customs Union
3. Common Market
4. Economic Union
5. Political Union
●● rules of origin.
Answer: A certain percentage of the value of a good has to be produced
by countries within the free trade area.
●● EFTA (European Free Trade Association).
Answer: A free trade association including Norway, Iceland,
Liechtenstein, and Switzerland. Non EU members
,●● customs union.
Answer: eliminates trade barriers between member countries and adopts
a common external trade policy
●● common market.
Answer: no barriers to trade between member countries, a common
external trade policy, and the free movement of the factors of production
●● Free Trade Area.
Answer: A zone in which there are no tariffs or other restrictions on the
movement of goods and services across borders
●● economic union.
Answer: A group of countries committed to (1) removing all barriers to
the free flow of goods, services, and factors of production between each
other, (2) the adoption of a common currency, (3) the harmonization of
tax rates, and (4) the pursuit of a common monetary and fiscal policy.
●● political union.
Answer: a central political apparatus coordinates economic, social, and
foreign policy
●● trade creation.
, Answer: occurs when high-cost domestic producers are replaced by low-
cost producers within the free trade area
●● trade diversion.
Answer: occurs when lower-cost external suppliers are replaced by
higher-cost suppliers within the free trade area
●● Treaty of Rome.
Answer: the 1957 treaty that established the European Community
●● European Commission.
Answer: Responsible for proposing EU legislation, implementing it, and
monitoring compliance
●● European Council.
Answer: the ultimate controlling authority within the EU
●● European Parliament.
Answer: debates legislation proposed by the commission and forwarded
to it by the council
●● Treaty of Lisbon.
