INTERNATIONAL SCHOOL OF ASIA AND THE PACIFIC

Alimannao Hills, Penablanca, Cagayan

C OLLEGE OF B USINESS A DMINISTRATION AND A CCOUNTANCY

Subject Code : B.A. 403

Subject Title : European Business Environment
Term : Midterm Examination
Semester : First Semester School: 2018- 2019

Name: ________________________________________ Course/Year&Section:_________________

Proctor: _______________________________________ Exam Score:___________________

I.MATCHING TYPE: Match Column A to Column B. Write your answer in CAPITAL letter on the space provided
before each number.

_______1. ‘United in diversity a. a symbol of unity.

_______2. ‘Ode to Joy’ b. The euro was launched
_______3. euro c. It has fuelled economic growth and made the
_______4. circle everyday life of European businesses and
_______5. 1 January 2002 consumers easier.
_______6. The Single Market d. 'Schuman declaration'
_______7. Schengen area e. Romania, Bulgaria
_______8. Treaty of Maastricht [1992]
f. 751
_______9. The Treaties of Rome [1957]
g. EEC and EURATOM
_______10. 2013
h. 42 seats
_______11. 2007
i. HR/VP Federica Mogherini
_______12. EPP: European People’s Party
j. Greece
_______13. EFDD
_______14. 1 January 1999 k. Belgium
_______15. S&D l. Ludwig van Beethoven
_______16. Members of the European m. Independence Day
Parliament (MEP) n. Christian Democrats. 217seats
_______17. The Council of Europe o. Spain and Portugal
_______18. EEAS p. Banknotes and coins
_______19. 1981 q. Jean-Claude Juncker
_______20. 9 May r. Strasbourg, France
s. The Treaty of the European Union (TEU)
t. Malta 2017
u. most tangible proof of European integration
v. Luxembourg
w. Progressive Alliance of Socialists and Democrats
x. Freedom of movement
y. Croatia
z. – the EU countries are committed to peace and
prosperity while respecting Europe's different cultures
and languages

II. MULTIPLE CHOICE. Read each question carefully before answering.Encircle the letter of your choice.
Erasures and any form of superimposition means wrong.(30 points)

1. On the 1st January 1958, six countries signed the treaty establishing the European Economic Community
(EEC), in turn establishing the foundations for the European Union. In which European capital was it signed in
from which it also takes its name?

a) Athens b) Brussels c) Rome d) Amsterdam

2. The European Union has grown to be one of the world's largest trading blocs and markets. What is the
approximate size of the population of the EU?
 a) 500 million people b) 292 million people c) 1.3 billion people d) 127 million people

3. Which two institutions decide the Union's budget?

a) The Council of Ministers and the European Commission

b) The European Parliament and the European Central Bank
c) The Council of Ministers and the European Parliament
d) The European Central Bank and the European Commission

4. The European Union is one powerful global economic bloc. ASEAN is best described as being:

a) A free trade zone b) A confederation of states

c) A customs union d) A monetary union

5. Which of the following EU countries are sometimes referred to as the PIGS countries?

a) Portugal, Ireland. Greece, Spain

b) Poland, Italy, Germany, Slovenia
c) Poland, Ireland, Greece, Switzerland
d) Portugal, Italy, Greece, Slovenia

6. What is the main reason behind the introduction of the euro?

a) It promotes economic sovereignty

b) It can protect business trading from currency fluctuations
c) To allow the free movement of people
d) It was a branding exercise

7. Which of the following countries is NOT a member of the EU?

a) Croatia b) Spain c) Malta d) Turkey

8. Which of the following are exclusive EU competencies in relation to Member States?

a) Conservation of marine biological resources (common fisheries policies), common market policies,the
customs union and monetary policy for Member States belonging to the Eurozone.
b) The customs union, the environment, agriculture and consumer protection.
c) Monetary policy for Member states belonging to the Eurozone, tourism, transport and industrial policy,
EU regional Policy.
d) The customs union, common commercial (trade) policies, education and culture.

9. EU competition and industry policies have affected the EU airline market. Which of the following
statements is true?

a) EU airlines are now limited to operating in their home markets and the market has shrunk overall
significantly.
b) The three major carriers are now in a position to dominate the entire market unchallenged.
c) EU carriers are now more competitive and the market is growing rapidly.
d) The EU airline market is now predominantly run on the low-cost operator model.

10. Which of the following is NOT an argument for a country allowing its currency to float freely?

a) It allows the country to have sovereignty over its currency.

b) It enables a country to allow its currency to depreciate if it faces balance of payments deficits.
c) It gives greater certainty to firms involved in trade in terms of future revenues.
d) It enables a country to have greater control over its fiscal and monetary policies.

11. A common or single market will have all of the following features except:

a) No internal trade barriers

b) Common external tariff
c) Factor and Asset mobility
d) A common currency
12. Which of the options below is the only characteristic of a free trade area?

a) A common currency
b) Common economic policy
c) No internal trade barriers
d) Common external tariff

13. Which of the following would undermine the case for a customs union?

a) It will encourage closer economic co-operation between members.

b) It will encourage competition between members.
c) If there was substantial evidence that trade diversion outweighed trade creation.
d) It will enable all businesses in the area to access larger markets.

14. Which of the following was not an objective of early European integration efforts?
a) Peace
b) Social rights
c) Economic reconstruction
d) Political stability

15. Which of the following institutions is not part of the 'institutional triangle'?
a) EU Council
b) European Parliament
c) European Commission
d) Member states
16. By 2015, how many member states were there in the EU?
a) 15 b) 25 c) 28 d) 30

17. What are the Copenhagen criteria?

a) They stipulate the necessary population size and geographical location of potential EU member states.
b) They are the economic and political criteria with which to judge whether a candidate country is ready
to join the EU.
c) They are the internal institutional criteria that the EU must meet in order to expand.
d) They define the terms 'European' and 'democratic': two factors required for EU membership.

18. Which of the following is not a source of funds for the EU Budget?
a) VAT-based contributions
b) Customs duties and levies
c) National contributions
d) Direct taxes on EU citizens

19. With respect to the EU Budget, which of the following is incorrect?

a) Compared to national budgets, the EU Budget is relatively large.
b) The EU Budget is organized through a multi-annual budgetary framework.
c) Budget negotiations are always controversial.
d) The Budgetary process is complex.

20. Under the ordinary legislative procedure (OLP) which two institutions 'co-decide' EU laws?
a) European Commission and EU Council
b) EU Council and European Parliament
c) European Commission and European Parliament
d) EU Council and Courts

21. Which Treaty established EU citizenship?

a) Treaty of Rome (1957)
b) Treaty of Maastricht (1992)
c) Treaty of Amsterdam (1997)
d) Treaty of Nice (2001)

22. In response to the democratic deficit, which of the following has the EU not done?
a) Implemented the principle of subsidiarity
 b) Increased the relative power of the Commission
c) Increased dialogue with civil society
d) Increased the relative power of the European Parliament

23. In which decade did European integration begin?

a) 1950s b) 1960s c) 1970s d) 1980s

24. Which is the correct order in which these treaties were signed?

a) Single European Act, Treaty of Amsterdam, Nice Treaty, Treaty on European Union
b) Treaty on European Union, Single European Act, Nice Treaty, Treaty of Amsterdam
c) Single European Act, Treaty on European Union, Treaty of Amsterdam, Nice Treaty
d) Single European Act, Treaty of Amsterdam, Nice Treaty, Treaty on European Union

25. Which of the following established the EU?

a) Maastricht Treaty b) Nice Treaty

c) Treaty of Amsterdam d) Laeken Declaration

26. Two intergovernmental conferences (IGCs) preceded the Treaty on European Union. What were they
about?

a) Economic and Monetary Union (EMU) and European citizenship

b) Economic and Monetary Union (EMU) and political union
c) European citizenship and enlargement
d) Enlargement and political union

27. Which of the following prepared the EU for enlargement?

a) Treaty of Amsterdam b) Maastricht Treaty

c) Single European Act d) Nice Treaty

28. Which of the following established European citizenship?

a) Treaty of Amsterdam
b) Nice Treaty
c) Single European Act
d) Treaty on European Union

29. Complete the following sentence: 'European citizenship was created...

a) ... as a replacement for national citizenship.'

b) ... in addition to national citizenship.'
c) ... as optional for citizens of EU member states.'
d) ... as a special privilege for European leaders.'

30. Which European institution gained decision-making power through the introduction of the ordinary
legislative procedure?

a) Commission
b) Council
c) ECJ
d) Parliament

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"No servant can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and
despise the other. You cannot serve both God and Money." -Jesus of Nazareth
Prepared by: Noted by:

BRIAN S. INCOGNITO, MBA CB RONIE E. SUGAROL, MPBM

Program Coordinator, CBA Dean, Business Educaton/ School Overseer

Reviewed by: Approved by:

DAN PAOLO E. RAMOS, MSHM PRESENITA C. AGUON, PhD.

QA for Academics and Administration Vice President for Academic Affairs