Global Dim Ch. 9

________ entails even closer economic integration and cooperation than a common market.

An economic union

What are three methods used to achieve economic integration? Multiple select question. Common market Economic union Military alliance Customs union Export-Import bank

Common market Economic union Customs union

One of the first steps to economic and political integration is a(n) ____ union, where trade barriers among member nations are removed and a common trade policy is adopted. political common economic customs

Customs

Which of the following was required for new applicants to qualify for EU membership? minimum economy size of €1 trillion nationalization of private assets sustained GDP growth of 10 percent for five years deregulation of markets

Deregulation

The _____ concentrated in the trade of industrial goods and was made up of European countries that did not initially join the European Community. CAFTA EU NAFTA EFTA

EFTA

There are two main trading blocs in Europe, the European Union and the

EFTA

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

Europe

Which of these trade unions is made up of European countries that initially decided NOT to be part of the European Community and emphasized free trade in industrial goods? European Free Trade Association Mid-Europe Free Trade Association NAFTA Intercontinental Free Trade Association

European Free Trade Association

Coordination and policy harmonization problems increase as the number of countries that seek agreement increases.

False?

In which level of economic integration are all barriers to trade among member countries removed?

Free trade area

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of the WTO?

To ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of the WTO?

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

Trade diversion

True or false: All WTO members were participating in regional trade agreements by 2019.

True

Which feature of a customs union differentiates it from a free trade area?

a common external trade policy toward nonmembers

Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of?

a free trade area

Select all that apply An economic union adds what three features to a common market's features? Multiple select question. coordinated tax rates common monetary & fiscal policy governed by the same legislature integration of equity markets common currency

coordinated tax rates common monetary & fiscal policy common currency

Linking neighboring countries economically and making them interdependent

creates incentives to increase political cooperation as well.

Select all that apply What are two characteristics of a common market? Multiple select question. free movement of labor and capital stringent restrictions on immigration no barriers to trade among member countries limitations on cross-border flows of capital

free movement of labor and capital no barriers to trade among member countries

In terms of economic integration, the least integrated level of integration is a(n) _____.`

free trade area

Lauren's company is eager to trade with Canada because there are no quotas or subsidies on the product they want to sell there. This describes a _____.

free trade area

Three countries agree to remove barriers to trade between member countries and adopt a common external trade policy toward nonmembers. They also agree to allow people and other factors of production to move freely across their borders. Which level of economic integration is this an example of?

free trade area

From least integrated to most integrated, the levels of economic integration are a

free trade area, a customs union, a common market, an economic union, and a political union.

A customs union is put in place to _____. establish trade barriers between member countries regulate foreign trade policy among members instigate political rivalry between member countries create a separate external trade policy for each member country

regulate foreign trade policy among members

Which of the following is a concern of some economists regarding regional integration?

the benefits of regional integration may have been oversold, while the costs have been ignored.