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.
