Exam 9: Regional Economic Integration

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?

Which of the following is directly elected by the populations of the member states and is primarily a consultative rather than legislative body?

A major impediment to economic integration is the loss of sovereignty it entails.

Explain how Mercosur has changed over time. What are the implications of these changes?

The implied loss of national sovereignty to the ECB underlies the decision by Great Britain, Denmark, and Sweden to stay out of the euro zone for now.

In early 2006, six CARICOM members and the United States established the ____, which was modeled on the EU's single market.

Which level of economic integration eliminates trade barriers between member countries and adopts a common external trade policy?

Which treaty, signed in December 1991, committed EC members to adopting a common currency by January 1, 1999?

According to Alexander Yeats, the trade diversion effects of Mercosur outweigh its trade creation effects.

Why doesn't Great Britain use the euro as its national currency?

Which of the following is seen to be a consequence of the size of the EU from 15 nations to 27 nations?

Some economists have expressed concerns that the benefits of regional integration have been touted while the costs have been ignored. Explain the view of these economists.

The move toward economic union raises the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations. Which of the following offers a solution to this problem?

The Andean Pact is a highly successful common market modeled after the EU.

Discuss the Free Trade Area of the Americas. What is hindering its progress? What is the position of the U.S. on the agreement? How does Brazil feel about the FTAA?

A _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Debate the ratification of the North American Free Trade Agreement.

How does the NAFTA seem to increase the international competitiveness of U.S. and Canadian firms?

Which of the following was required for new applicants to qualify for EU membership?

The movement toward regional economic integration been most successful in Asia.