Regional Integration Theories

Which of the following is not a characteristic of the Federalist Theory?

• Member states surrender regional decision making to the regional organization.

• Member states are bound to the decisions made by the regional organization.

• The creation of a central political institution that has similar functions to state governments.

• The goal of regional integration is to establish a huge federal system at the regional level.

According to Neofunctionalism, what are the three mechanisms that are the driving force behind regional integration?

• Technocractic automaticty

• Maintenance of domestic allegiances

• Positive spillover

• Transfer of domestic allegiances

• Negative spillover

This stage of economic integration involves eliminating tariffs among member states and implementing a common external tariff for non-member states.

The European Union (EU) is an example of a region implementing the Federalist theory.

• True

• False

Which stage of economic integration is involves eliminating tariffs among member states, a common external tariff for non-member countries and freedom of movement for the factors of production?

• Economic union

• Single market

• Customs union

• Free trade area

• Preferential trading area

Which of the following are the features of a free trade area?

• Tariff reduction on certain products

• Eliminate tariffs on some/all imported products from non-member countries

• Member states maintain their own external tariff for non-member states

• Eliminate tariffs on some/all imported products between member states

• Implement common external tariff for non-member states

The idea behind economic integration is that as integration increases, the barriers of trade will also increase.

• True

• False

Which theory states that the political organization is not important in the process of regional integration?

According to the positive spillover effect, integration in between states is which sector will create strong incentives for integration in further sectors?

• Political

• Education

• Sociocultural

• Economic

Neofunctionalism assumes a decline in the importance of nationalism.

• True

• Fasle