Regional Economic Integration

A free trade area ________.

• is complete political and economic integration of two or more countries

• eliminates trade barriers among member countries

• allows workers to move freely among trade nations

• avoids problems stemming from trade deflections

Regional economic integration is a process in which two or more countries agree to remove economic barriers in order to increase productivity and economic interdependence.

• True

• False

A common market ________.

• is complete political and economic integration of two or more countries

• requires members to eliminate internal trade barriers and coordinate economic policies

• eliminates trade barriers among member countries

• requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production

To improve members bargaining strength in multilateral trade negotiations is one of the objective in economic integration.

• True

• False

Which of the following is an example of regional economic integration?

• The British Commonwealth

• ASEAN

• The Cingular and AT&T merger

• The Commonwealth of Independent States

Free Trade Area is considered to have the highest level of regional integration.

• True

• False

All of these are the economic reasons for regional integration, except:

• Benefiting from the free flow of trade and investment

• Specialized in the production of goods

• Free movement of factors of production

• Reduce potential violent conflict

All countries will benefit from regional economic integration.

• True

• False

Which countries include ASEAN + 3?

• Cambodia, Laos, Myanmar

• US, UK, AUS

• Cambodia, Laos, Myanmar

• China, South Korea, Japan

Taiwan is one of the member of ASEAN.

• True

• False