Exam 9: Regional Economic Integration

Which of the following explains why economic integration has never been easy to achieve or sustain,despite the strong economic and political arguments in support?

Which of the following is seen as a disadvantage of the euro?

Which of the following observations pertaining to the EU's Court of Justice is incorrect?

Regional economic integration involves agreements among countries in a geographic region to reduce,and ultimately remove,tariff and nontariff barriers to the free flow of goods,services,and factors of production between each other.

The bulk of intra-ASEAN trade consisted of goods whose tariffs had been reduced through an ASEAN preferential trade arrangement.

Which of the following accounts for about 55 percent of the world's GNP and 49 percent of world trade?

The European Community was established by:

The East African Community (EAC)has been a successful integration effort in Africa during the last three decades.

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.

How easy is it for countries to integrate?

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

In a customs union,trade barriers are eliminated among member countries,and each country maintains its own external trade polices with nonmember countries.

In a(n)_____,similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy.

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?

There are two main trading blocs in Europe,the European Union and the European Free Trade Association.

What is the political case for integration? How did political arguments influence the establishment of the European Union?

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?

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

A political benefit of economic integration is that:

Which feature of a customs union differentiates it from a free trade area?