IB Quiz 9

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, ________ remains an important holdout.

Great Britain

One of the impediments to integration arises from

concerns over national sovereignty

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

EAC

The emerging role of the ________ in competition policy suggests the EU is increasingly willing and able to intervene and impose conditions on companies proposing mergers and acquisitions.

European Commission

The steady rise of regional economic integration has recently seen some retrenchment. What factor is considered to be primarily responsible for this drawback?

The rise of populist politics

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 ________, 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

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.

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

free trade areas

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, ________ occurs.

trade creation

________ can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under global agreements.

Regional economic integration

The basic objective of ASEAN is to foster freer trade among member countries and to achieve cooperation in their industrial policies. ASEAN can be found in which location?

Southeast Asia