European Economics: Trade Agreements

What is a trade agreement?

Name one trade agreement between European countries.

• European Union

• Mercosur

• North American Free Trade Agreement

• Asia-Pacific Economic Cooperation

What are the benefits of trade agreements?

• Reduced market access, higher tariffs and trade barriers, decreased economic growth, job loss, and limited consumer choices.

• No impact on market access, tariffs and trade barriers remain the same, stagnant economic growth, no job creation, and limited consumer choices.

• Increased market access, higher tariffs and trade barriers, decreased economic growth, job loss, and limited consumer choices.

• Increased market access, lower tariffs and trade barriers, enhanced economic growth, job creation, and improved consumer choices.

What is the purpose of the European Free Trade Association (EFTA)?

• To promote protectionism and trade barriers among member states.

• To encourage monopolies and limit competition among member states.

• To promote free trade and economic integration among member states.

• To restrict trade and economic integration among member states.

What is the difference between a free trade agreement and a customs union?

• A free trade agreement only applies to goods and services, while a customs union also includes the free movement of capital and labor.

• A free trade agreement focuses on reducing trade barriers within a single country, while a customs union focuses on reducing trade barriers between multiple countries.

• A free trade agreement is a temporary arrangement, while a customs union is a permanent agreement between countries.

• The main difference is that a free trade agreement focuses on reducing trade barriers between member countries, while a customs union goes a step further by adopting a common external trade policy with non-member countries.

Which trade agreement allows for the free movement of goods, services, capital, and people within the European Union?

What is the role of the World Trade Organization (WTO) in trade agreements?

• The role of the World Trade Organization (WTO) in trade agreements is to promote unfair trade practices and favor developed countries over developing countries.

• The role of the World Trade Organization (WTO) in trade agreements is to impose tariffs and trade barriers to protect domestic industries.

• The role of the World Trade Organization (WTO) in trade agreements is to restrict the flow of international trade and hinder economic growth.

• The role of the World Trade Organization (WTO) in trade agreements is to provide a forum for negotiating and implementing trade agreements, resolve trade disputes, and ensure the smooth flow of international trade.

What are some examples of non-tariff barriers in trade agreements?

• tariffs, embargoes, import quotas

• currency manipulation, intellectual property theft, unfair competition

• quotas, licensing requirements, technical barriers, sanitary and phytosanitary measures, subsidies, customs procedures

• trade liberalization, free trade zones, open borders

How do trade agreements impact economic growth?

• Trade agreements have no impact on economic growth.

• Trade agreements can hinder economic growth by increasing trade barriers.

• Trade agreements only benefit large corporations and do not contribute to overall economic growth.

• Trade agreements can impact economic growth by promoting international trade, reducing trade barriers, and increasing market access for goods and services.

What are the potential drawbacks of trade agreements?