MBA776 Exam 3: Questions With Expert Insights
Solutions
Economic development Correct Answer - an increase in national
production reflected by an increase in the average per capita gross domestic
product or gross national income
UN's stages of economic development Correct Answer - more-developed
countries (MDCs), Less-developed countries (LDCs), least-developed
countries (LLDC)
more-developed countries (MDCs) Correct Answer - industrialized
countries with high per capita incomes such as Canada, England, France,
Germany, Japan, and the US
Less-developed countries (LDC's) Correct Answer - industrially
developing countries just entering world trade with relatively low per capita
incomes, such as many countries in Asia and Latin America
Lest-developed countries (LLDC's) Correct Answer - industrially
underdeveloped, agarian, subsistence societies with rural populations,
extremely low per capita income levels, and little world trade involvement
newly industrialized countries (NICs) Correct Answer - LDCs
industrializing quickly are commonly called
Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan Correct Answer -
examples of newly industrialized countries.
big emerging markets (BEMs) Correct Answer - geographically large
significant populations
represent sizeable markets for a wide range of products
have strong rates of growth or the potential for significant growth
have undertaken significant programs of economic reform
major political importance
"regional economic drivers"
further expansion in neighboring markets
, import more than smaller markets and economies of similar size Correct
Answer - BEMs grow because they
BRICS - Brazil, Russia, India, China, South Africa Correct Answer -
biggest examples of BEMs
low labor costs, demographics that favor growth, natural resources to fuel
global commodities market Correct Answer - reasons why BRICS nations
are so fast growing
United States-Canada Free Trade Area (CFTA) Correct Answer - •Was
world's largest bilateral trade agreement
•Each country was the other's largest trading partner
•Created single, continental commercial market
•Worked for trade of all goods and most services
•Eliminated tariffs and trade barriers
•Did not necessitate any political union
•Mexico soon expressed interest in free trade with U.S.
North America Free Trade Agreement (NAFTA) Correct Answer - 1994,
Agreement that created a free trade zone among Mexico, Canada, and the
United States, in all hope of encouraging economic growth in all three nations
United States, Mexico, and Canada Agreement (USMCA) Correct Answer -
called different in each nation, tariffs eliminated or lowered, quotas reduced,
wide range of products and issues covered, dispute resolution system similar
to NAFTA, enforcement of protection beefed up
DR-CAFTA Correct Answer - free trade agreement passed in 2005, US,
Dominican republic and central american countries, included a wide array of
tariff reductions, step toward free goal of free trade across all Americas
Southern Cone Free Trade Area (Mercosur) Correct Answer - •Treaty of
Asunción provided legal basis
•Calls for common market to allow free movement of goods, capital, labor, and
services among members
•Uniform external tariff
•Includes six countries
•Argentina, Bolivia, Brazil, Chile, Paraguay, Uruguay
Solutions
Economic development Correct Answer - an increase in national
production reflected by an increase in the average per capita gross domestic
product or gross national income
UN's stages of economic development Correct Answer - more-developed
countries (MDCs), Less-developed countries (LDCs), least-developed
countries (LLDC)
more-developed countries (MDCs) Correct Answer - industrialized
countries with high per capita incomes such as Canada, England, France,
Germany, Japan, and the US
Less-developed countries (LDC's) Correct Answer - industrially
developing countries just entering world trade with relatively low per capita
incomes, such as many countries in Asia and Latin America
Lest-developed countries (LLDC's) Correct Answer - industrially
underdeveloped, agarian, subsistence societies with rural populations,
extremely low per capita income levels, and little world trade involvement
newly industrialized countries (NICs) Correct Answer - LDCs
industrializing quickly are commonly called
Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan Correct Answer -
examples of newly industrialized countries.
big emerging markets (BEMs) Correct Answer - geographically large
significant populations
represent sizeable markets for a wide range of products
have strong rates of growth or the potential for significant growth
have undertaken significant programs of economic reform
major political importance
"regional economic drivers"
further expansion in neighboring markets
, import more than smaller markets and economies of similar size Correct
Answer - BEMs grow because they
BRICS - Brazil, Russia, India, China, South Africa Correct Answer -
biggest examples of BEMs
low labor costs, demographics that favor growth, natural resources to fuel
global commodities market Correct Answer - reasons why BRICS nations
are so fast growing
United States-Canada Free Trade Area (CFTA) Correct Answer - •Was
world's largest bilateral trade agreement
•Each country was the other's largest trading partner
•Created single, continental commercial market
•Worked for trade of all goods and most services
•Eliminated tariffs and trade barriers
•Did not necessitate any political union
•Mexico soon expressed interest in free trade with U.S.
North America Free Trade Agreement (NAFTA) Correct Answer - 1994,
Agreement that created a free trade zone among Mexico, Canada, and the
United States, in all hope of encouraging economic growth in all three nations
United States, Mexico, and Canada Agreement (USMCA) Correct Answer -
called different in each nation, tariffs eliminated or lowered, quotas reduced,
wide range of products and issues covered, dispute resolution system similar
to NAFTA, enforcement of protection beefed up
DR-CAFTA Correct Answer - free trade agreement passed in 2005, US,
Dominican republic and central american countries, included a wide array of
tariff reductions, step toward free goal of free trade across all Americas
Southern Cone Free Trade Area (Mercosur) Correct Answer - •Treaty of
Asunción provided legal basis
•Calls for common market to allow free movement of goods, capital, labor, and
services among members
•Uniform external tariff
•Includes six countries
•Argentina, Bolivia, Brazil, Chile, Paraguay, Uruguay
