Exam 8: Regional Economic Integration

Scenario: EU Primer The tiny but important country of Beaconville has been invited to join the European Union (EU). However, there is a lot of confusion among the country's population as to exactly how the EU operates. Beaconville's Office of Public Affairs is putting together a flyer outlining some of the EU's basic operating components and needs help answering the following questions. -The ________ is the court of appeals of the EU.

The lowest extent of national integration occurs in a(n) ________.

The Council of the European Union is the ________ body of the European Union.

One result of trade creation is that consumers and industrial buyers in member nations have a wider selection of goods and services than before.

Countries belonging to the free-trade area must concede a certain amount of their national autonomy (or sovereignty) to the supranational union of which they are a part.

The process whereby countries in a geographic region cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________.

The goal of the ________ in 1987 was to remove remaining trade barriers, increase harmonization and thereby enhance the competitiveness of European companies.

Which of the following created what was called the European Economic Community?

Because the formation of trading blocs significantly reduces or eliminates barriers to trade among members, the producer of a particular good or service is likely to be the least productive producer.

Economic integration whereby countries remove all barriers to trade among themselves, but each country determines its own barriers against nonmembers is called a(n) ________.

Scenario: Learning the Americas' Way The newly-formed countries that emerged after the break up of the United Frontier States (UFS) are interested in learning more about integration in the Americas. Because the former UFS nations have many similarities with the countries of North and South America, they believe they can learn from the integration experience in the Americas. To that end, they pose the following questions. -Bolivia, Colombia, Ecuador, and Peru belong to the ________.

Nations undergoing economic integration desire to ________.

One country that is a logical, but highly unlikely, candidate for future membership in the European Union is Luxembourg.

Explain the concepts of trade creation and trade diversion. Who are the winners and losers in each scenario?

The single currency of the European Union is called the ________.

In a free-trade area, each country is able to maintain whatever policy it sees fit against nonmember countries.

The European Free Trade Association (EFTA) has been completely abolished in light of successful integration of the European Union.

In addition to the free internal movement of goods, services, labor, and capital, the Treaty of Rome also aimed at establishing common policies among member nations for transportation and agriculture.

Because commissioners are appointed by their national governments to the European Commission, they are expected to behave in their own countries' best interest.

The 1951 precursor to the European Union was the ________.