Under a common market agreement, you would find
Multiple Choice
• absence of a common external trade policy with regard to nonmembers.
• free movement of factors of production between member nations.
• establishment of barriers to the free flow of goods between member nations.
• a lack of administrative machinery to oversee trade relations with nonmembers.
• mandatory use of a common currency among member nations.
Which of these situations shows how concerns over national sovereignty can act as an impediment to regional economic integration?
Multiple Choice
Multiple Choice
• Organization of the Petroleum Exporting Countries regulating the supply of petroleum as a cartel
• Asia-Pacific Economic Cooperation failing to establish itself as a regional arrangement
• admission of eastern European nations into the European Union
• Great Britain refusing to adopt the common currency of the European Union, the euro
• rise of the World Trade Organization
• The price of a bouquet of tulips in France is 4 euros. Jenna Algren, a frequent international traveler, found that a similar bouquet of tulips cost only 3 euros in Belgium. This demonstrates that the benefit of adopting the euro as a common currency is that it
Multiple Choice
• Multiple Choice
• makes it easier to compare prices across Europe.
• makes Europe an optimal currency area.
• increases the range of investment options open only to institutions.
• leads to higher prices, which translate into substantial gains for European producers.
• decreases competition because it has become harder for consumers to shop around.
• How did the Treaty of Rome affect trade?
Multiple Choice
• It obliged all European Union members to adopt the euro.
• It committed the European Economic Community to establish common policies in agriculture and transportation.
• It called for the establishment of internal trade barriers.
• It allowed members to determine the level of protection applied to goods coming from outside.
• It called for the abolition of a common external tariff.
• What is a defining characteristic of a free trade area?
Multiple Choice
• Factors of production are allowed to move freely between member nations.
• Each member country is allowed to determine its own trade policies with regard to nonmembers.
• Member nations are required to have a common currency.
• Member nations are required to have a common monetary and fiscal policy.
• Member nations are required to have a central political apparatus that coordinates economic, social, and foreign policy.