useless

Free trade agreements account for nearly ____ of regional economic agreements.

90%

What are two methods a country would use to achieve economic integration? (Check all that apply.)

Common market Economic union

What are two impediments to establishing economic integration? (Check all that apply.)

Costs of integration Concerns over national sovereignty

What are two key political institutions of the EU? (Check all that apply.)

Council of the European Union European Commission

Which EU organization handles appeals of EU law?

Court of Justice

As the most enduring free trade area in the world, ______ concentrates on the free trade of industrial goods, but not agricultural products.

EFTA

Which institution has a monopoly in proposing European Union legislation?

European Commission

In the political structure of the European Union, the ______ is composed of one representative from the government of each member state, but the membership varies depending on the topic being discussed.

European Council

Which of these trade unions is made up of European countries that decided NOT to be part of the European Community and emphasized free trade in industrial goods?

European Free Trade Association

What are the two major trading blocks in Europe? (Check all that apply.)

European Free Trade Association European Union

The most significant trading block in Europe based on economic and political influence is the _____.

European Union

The European Community (EC) became the ______ in 1993.

European union

One of the reasons the European Union was originally formed was because

Europeans desired a lasting peace after enduring two devastating world wars.

The Maastricht Treaty stated that EU members were to adopt a common currency by January 1, 1999. When were euro notes and coins issued?

January 1, 2002

Under which treaty was the power of the European Parliament increased?

Lisbon

What are two factors that support the idea for political integration of nations through trade? (Check all that apply.)

Making nations interdependent can decrease the potential for violent conflict. Countries can enhance their political weight in the world.

The Treaty of ________ established the European Community in 1957.

Rome

To signify the importance of the ______, the European Community decided to change its name to the European Union once the act took effect.

Single European Act

True or false: One political reason that supports economic integration is the potential to reduce violent conflict between nations.

TRUE

The economic policies of the European Union are established by the four main institutions in the political structure: the European Commission, the Council of the European Union, the European Parliament, and _____.

The Court of Justice

The anticipated exit of _____ from the European Union has cast a level of doubt about the future of the project.

The United Kingdom

What two political factors led to the development of the European Union? (Check all that apply.)

The devastation of western Europe during the two world wars. Europe's desire to hold its own on the world's political and economic stage.

What are two potential problems with an economic union?

There is surrender of some national sovereignty. It requires a coordinating bureaucracy.

What are two reasons for a customs union being put in place?

To establish a common external trade policy To eliminate trade barriers between member countries

Which level of economic integration is present in an agreement that has no barriers to trade among member countries and allows factors of production (such as labor) to move freely among the members?

a common market

The Maastricht Treaty committed EU members to

adopt a common currency by January 1, 1999.

One of the changes proposed by the Single European Act was to abolish the restrictions placed on foreign truckers who pick up and deliver goods within another member's state borders. This hauling process is known as ______.

cabotage

A(n) ______ allows the free movement of factors of productions among member countries, eliminates trade barriers among member countries, and has a common external trade policy.

common market

The European Parliament is considered a _____ body.

consultative

An argument against regional free trade agreements contends that the benefits have been oversold, but ______ have often been ignored.

costs

In moving toward economic and political integration, a(n) ______ union removes trade barriers among member nations and establishes a common trade policy for nonmembers.

customs

When lower-cost external suppliers are replaced by higher-cost suppliers within a free trade zone, this is called trade

diversion

A(n) ______ union adds more economic integration to a common market by requiring a common currency, a common monetary and fiscal policy, and harmonization of tax rates.

economic

Regional _____ integration creates agreements among countries in a specific geographic area in order to reduce and eventually remove tariff and nontariff barriers to the free flow of goods.

economic

How do members of the European Parliament gain their seat?

elected directly by citizens

A lack of barriers to the trade of goods and services among member countries is found in a(n)

free trade area

The establishment of the euro is seen as a surprising political accomplishment because it required participating governments to

give up control over monetary policy.

The Court of Justice is made up of _____.

one judge from each country in the EU

A(n) ______ union consists of a central governing body that regulates the economic, social, and foreign policy of member states.

political

The United States is considered a close example of a _____ because 50 independent states are effectively combined into a single nation.

political union

Based on economic theories, free trade is viewed as a ______ as all participating nations stand to gain.

positive sum game

The Treaty of Lisbon created the position of ______ of the European Council.

president

The number of votes a country gets in the European Council is related to the

size of the country

Economic theories suggest that free trade allows countries to

specialize in producing goods and service that they are most efficient at producing.

A key impediment to economic integration is that although a majority of citizens may benefit from free trade, certain groups may lose their jobs to low-cost and low-skilled labor in other countries as was the experience of some U.S. and Canadian workers in the ______ industry following the establishment of NAFTA.

textile

When high-cost domestic producers have been replaced by low-cost producers within a free trade zone, this is called

trade creation

______ is an economic term that refers to high-cost domestic producers being replaced by low-cost producers within the free trade area.

trade creation

Some economists argue that regional free trade agreements will provide global benefits only if

trade creation exceeds trade diversion.

______ is an economic term defined as replacing lower-cost external suppliers with high-cost suppliers within the free trade area.

trade diversion