Ch 9 (2) - BUS5 187

To achieve full economic union, the European Union introduced a common currency, the euro, controlled by a central EU bank. Although most member states have signed on, ________blank opposed this policy, and later voted to leave the EU.

Great Britain

In a free trade area, countries are not allowed to determine their own trade policies with nonmembers.

false

The European Parliament is the primary legislative body within the European Union.

false

The emergence of single markets will make the business environment within each grouping less competitive.

false

There is consensus that the EU is what economists would call an optimal currency area.

false

Trade diversion occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

false

Which regional trade bloc includes Kenya, Uganda, and Tanzania?

EAC

Which statement characterizes the effect that the creation of a single market has had on business?.

The business environment within each single market has become more competitive.Correct

The movement toward regional economic integration has been most ambitious in Europe.

true

While a nation as a whole may benefit significantly from a regional free trade agreement, certain groups within the country may lose.

true

Regional economic integration offers significant opportunities for businesses. Which of the following is one of these opportunities?

Markets that were formerly protected from foreign competition are increasingly open.

The EU began as a ________blank, which eliminates trade barriers between member countries and adopts a common external trade policy, but does not allow free movement of factors of production between member nations.

customs union

The basic objective of ASEAN is to foster freer trade among member countries and to achieve cooperation in their industrial policies. The progress of ASEAN is best described as

limited.

Identify the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements.

free trade areas

When Norway, Iceland, Liechtenstein, and Switzerland established the EFTA, all barriers to the free flow of goods and services between the countries were removed. Member nations were allowed to determine the level of trade protection for goods coming from all other nations. What level of economic integration does this represent?

free trade area

Initially, the Andean Community struggled, but in the late 1980s, this trend started to reverse when

governments of Latin America began to adopt free market economic policies.

What is the ultimate controlling authority within the EU because it has the power to turn legislation into law?

the European Council

Country A and Country B entered into a free trade agreement recently. After this, Country A started importing heavy machinery from Country B, which Country A had previously produced domestically at a higher cost. Which of the following has occurred in this scenario?

trade creation

When higher-cost external producers are replaced by lower-cost external producers within the free trade area, ________blank occurs.

trade creation

One of the impediments to integration arises from

concerns over national sovereignty.