Trade Agreements and Economic Alliances Quiz

An economic agreement between the USA, Canada, and Mexico that creates a free trade zone.

Factories in the Mexican border region used by international corporations for final production of goods for the global market. Known for exploitative working conditions, low wages, and limited labor rights.

The process of moving production or services to a different country, often to take advantage of lower costs.

The process of moving production or services to a neighboring country, usually for similar reasons as Offshoring but with shorter distances.

An economic zone that aims to encompass all of North, Central, and South America with free trade.

Economic alliances between countries that promote free trade and cooperation.

Economic integration between countries with varying degrees of cooperation. Examples include the EU, NAFTA, and ASEAN.

The process of opening up markets to international trade with minimal barriers, such as tariffs.

The gap between the income of the richest and poorest segments of the population.

Workers often need to hold multiple jobs to make ends meet.

The level of government debt exceeding the value of the nation's output, raising concerns about financial stability.

A situation where a country imports more goods and services than it exports, resulting in a negative trade balance.

A minimum wage rate set by the federal government, but individual states can choose to set higher minimum wages.

The US government faces financial challenges due to increased spending on defense, tax cuts, and economic crises.

The practice of companies focusing on maximizing profits, potentially leading to job losses or stagnant wages for employees.

The trend of top managers receiving disproportionately higher income growth compared to average workers.

The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement signed between Canada and the European Union in 2016. It aims to remove trade barriers between the two sides.

CETA has been criticized for potentially weakening regulations around genetically modified foods and allowing lawsuits against governments if they are deemed not to have ‘fairly and justly’ treated investors.

The Transatlantic Trade and Investment Partnership (TTIP) is a proposed free trade agreement between the U.S.A. and the European Union. It aims to reduce trade barriers and boost economic growth.

The TTIP has faced significant criticism and controversy, particularly over concerns about investor protection, weakening of regulations, and potential environmental impacts.

A trade war is a conflict between countries or blocs that is waged using trade barriers, such as tariffs and quotas, to limit trade and harm each other's economies.

Countries engage in trade wars to protect domestic industries, support certain exports, or respond to unfair practices such as dumping, where products are sold below cost.

The EU's banana regulations favored banana imports from African, Caribbean, and Pacific states, disadvantaging South American exporters like Chiquita. This led to the EU facing fines for unfair practices.

Trade wars can have winners and losers. They can lead to job losses, higher prices, and economic instability. However, they can also encourage innovation and create new opportunities.

The Mercosur (Southern Common Market) was established in 1991 as a free trade zone for South American countries, promoting economic and political integration. It includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela (currently suspended), with Chile, Bolivia, Colombia, Ecuador, and Peru as associate members.

The Association of Southeast Asian Nations (ASEAN) is a regional organization composed of several countries, including Brunei, Malaysia, Singapore, Myanmar, Cambodia, Vietnam, and the Philippines. It aims to promote economic integration and security within the Southeast Asian region.

The FTAA (Free Trade Area of the Americas) is a proposed trade agreement aiming to create a free trade zone encompassing all of North, Central, and South America. It was envisioned to create a large trading bloc, but its implementation has faced significant challenges.

Venezuela, Bolivia, and Cuba have opposed the FTAA, viewing it as a tool of US imperialism. They have proposed an alternative trade agreement called "Trade Agreement of the Peoples" with other Latin American countries, seeking counterbalance to the FTAA influence.

The "Bank of the South" was established as an alternative to the IMF and World Bank, aiming to provide financial resources and support for development in South America. It serves as a counterbalance to the dominance of the IMF and World Bank in the region.

Despite aspirations for economic dynamism within Mercosur, the expected growth has not materialized due to structural differences among member states and numerous individual initiatives. This is evident in currency crises like the one in Argentina in 2001, disrupting the trade balances of member countries.

A significant portion of India's population lacks basic literacy skills, impacting the country's development trajectory.

The Indian education system faces challenges in reaching all citizens, particularly those in rural areas and disadvantaged groups.

Poverty affects a considerable number of Indians, impacting their living standards and overall well-being. This situation places considerable strain on the government's resources.

The rapid population growth in India presents a challenge for resource management and sustainable development.

Agriculture in India continues to rely heavily on unpredictable monsoon rains, making it vulnerable to droughts and floods, affecting the livelihoods of millions.

Indian farmers face increasing financial burdens due to rising input costs and declining income, leading to widespread indebtedness and suicides in the agricultural sector.

Corruption in India poses a hurdle to economic progress, hindering transparency, efficiency, and fair competition.

India's bureaucratic systems are often characterized by slow decision-making, excessive paperwork, and red tape, impacting business operations and economic growth.

The gap between the rich and poor is increasing in the USA. While the top 20% of earners take home almost half of the national income, the bottom 20% only earn around 3.5%.

In the USA, the minimum wage has been fixed at $7.25 per hour since 2010, but some states have raised it. California, for example, has a minimum wage of $15 per hour in 2022.

Many people in the USA need to work multiple jobs to make ends meet, highlighting the challenges of affording basic necessities despite the country's high GDP per capita.

The US government officially considers 13% of the population to be living below the poverty line. However, the actual number is closer to 20% due to factors like rising costs and inadequate support systems.

The USA stands out as the only developed country without a universal system of compulsory health insurance. This results in millions of Americans being uninsured, putting them at risk of financial ruin in the face of medical emergencies.

The US healthcare reform initiated by President Obama aimed to provide universal healthcare coverage, but challenges remain in making it more efficient and affordable.

Despite substantial spending on healthcare, the USA consistently spends almost twice as much per capita as countries like Austria and Germany, yet faces issues with access and affordability.

The USA has a significant number of millionaires and billionaires, showcasing its economic power, but this wealth is unevenly distributed, leading to significant disparities between the wealthiest and the struggling population.