Exam 8: Regional Economic Integration

Moonland Union Twenty-six nations of Moonland region,have decided to cooperate with one another to eliminate trade barriers among them and create the Moonland Union.They are not sure,however,to what extent they want to cooperate. -The process undertaken by these twenty-six countries is an example of ________.

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

The European Free Trade Association was formed in 1960 to focus on trade in ________.

Which of the following is true of the euro?

The main purpose of the ________ is to debate and amend legislation proposed by the European Commission of the EU.

In a free trade area,each country can maintain whatever policy it sees fit against nonmember countries.

The greatest benefit of regional integration is trade diversion.

When trade diversion occurs,buyers will likely pay less for products.

Which of the following is best classified as an economic union?

The primary purpose of the Gulf Cooperation Council at its formation was to ________.

In regional economic integration,industries that require mostly unskilled labor tend to shift production to low-wage nations within a trading bloc.

No proposed legislation becomes EU law unless the ________ votes it into law.

The only Western Hemisphere nation that has been excluded from participating in the Free Trade Area of the Americas (FTAA)is ________.

The European Union (EU)and European Free Trade Association (EFTA)created the European Economic Area (EEA).

The common currency of the European Union is known as the ________.

The ________ was established in 2006 between the United States and Costa Rica,El Salvador,Guatemala,Honduras,Nicaragua,and later the Dominican Republic.

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

Trade agreements allow competitors from other nations to enter the domestic market.

For countries to become members of the European Union,they have to meet certain demands laid down by the EU referred to as the ________.

A result of trade creation is that buyers pay higher prices for imported goods and services after trade barriers are removed.