unit 7,12,18 ,cq

What term describes political and monetary agreements among nations in which preference is given to member countries?

• International Commerce

• Economic Disintegration

• Economic Integration

• Global Cooperation

What was the predecessor to the World Trade Organization (WTO)?

• European Union (EU)

• North American Free Trade Agreement (NAFTA)

• General Agreement on Tariffs and Trade (GATT)

• Association of Southeast Asian Nations (ASEAN)

Which form of economic integration involves two countries deciding to cooperate more closely together, usually through tariff reductions?

• Regional integration

• Global integration

• Bilateral integration

• Multilateral integration

What is the primary goal of a Free Trade Agreement (FTA)?

• To establish a common currency among member countries.

• To abolish all tariffs between member countries.

• To create a common external tariff against non-member countries.

• To allow free mobility of production factors.

What is the largest and most comprehensive regional economic group mentioned?

• North American Free Trade Agreement (NAFTA)

• Association of Southeast Asian Nations (ASEAN)

• European Union (EU)

• Southern Common Market (Mercosur)

Which type of effect in regional economic integration describes the shifting of resources from inefficient to efficient companies as trade barriers fall?

• Dynamic effect

• Static effect

• Cascading effect

• Synergistic effect

What does the term "trade diversion" refer to in the context of economic integration?

• An increase in overall global trade.

• A shift in trade to countries within the group at the expense of trade with countries not in the group.

• The creation of new trade routes between member countries.

• The removal of all trade barriers globally.

Which of the following is not a typical reason for neighboring nations to form regional trade groups?

• Short travel distances for goods.

• Similar consumer tastes.

• Guaranteed higher wages for all member country workers.

• Common histories and interests.

A "Customs Union" is a form of economic integration that combines the features of a Free Trade Agreement with what additional element?

• Free mobility of production factors.

• A common external tariff against non-member countries.

• A shared central bank and common currency.

• A unified political system.

What is a key characteristic of a "Common Market" that distinguishes it from a "Customs Union"?

• It eliminates all internal tariffs.

• It establishes common external tariffs.

• It allows for the free mobility of production factors like labor and capital.

• It focuses solely on trade in services, not goods