International Economic Cooperation
What post–World War II realization led countries to pursue global economic cooperation?
global peace requires global cooperation
What organization officially replaced GATT in 1995?
World Trade Organization (WTO)
What is the most basic form of regional economic integration?
free-trade area
What agreement replaced NAFTA in 2020?
USMCA
What organization was formed in 1945 to replace the League of Nations?
United Nations
What U.S. program provided financial aid to Western Europe in exchange for opening economies to trade?
Marshall Plan
What WTO agreement focuses on reducing barriers to trade in services?
General Agreement on Trade in Services (GATS)
What type of integration removes internal trade barriers and establishes common external trade policies?
customs union
What South American trade bloc was formalized by the Treaty of Asunción in 1991?
MERCOSUR
What UN body is responsible for maintaining international peace and security?
Security Council
What 1947 agreement created rules to govern international trade among 23 countries?
General Agreement on Tariffs and Trade (GATT)
What WTO agreement protects intellectual property rights across borders?
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
What form of integration allows free movement of labor and capital among member countries?
common market
What Southeast Asian organization was created in 1967 to prevent domination by external powers?
ASEAN
What UN initiative outlines ten principles related to human rights, labor, environment, and anti-corruption?
UN Global Compact
What GATT principle requires countries to treat all trading partners equally?
Most-Favored-Nation (MFN) clause
What WTO principle is now referred to as Permanent Normal Trade Relations?
Most-Favored-Nation (MFN)
What is the highest level of integration includes shared economic policies and coordination?
economic union
What European treaty led to the adoption of the euro as a common currency?
Treaty of Maastricht
Businesses prefer stable environments because conflict increases risk in these four areas.
staffing, operations, regulations, and currency/financial management.
What round of negotiations led to the creation of the World Trade Organization?
Uruguay Round
What case study shows how U.S.–China trade tensions affected a specific agricultural product?
Soybean tariff case
What are pros of regional economic integration?
Trade creation, employment opportunities, and efficiency
African organization aims to create a single market and shared currency across the continent
African Economic Community (AEC)
What UN role allows businesses worldwide to sell goods and services to the organization?
UN as a buyer and procurement partner