Regional Economic Integration Trade Quiz

What is a customs union?

• A system of government regulation of international trade

• A type of currency used in international trade

• A military alliance between countries

• An agreement between countries to remove trade barriers and maintain common external tariffs

What is a common market?

• A type of market where goods are sold at a high price

• A type of trade agreement where member countries agree to remove all trade barriers among themselves, while maintaining individual trade policies with non-member countries.

• A type of market where member countries have strict trade barriers among themselves

• A type of market where member countries only trade with non-member countries

What is an economic and monetary union?

• A system where each country has its own currency and independent economic policies

• An organization that focuses on social and cultural cooperation among member countries

• An economic and monetary union is a type of trade agreement where member countries share a common currency and have coordinated economic policies.

• A union where member countries have no trade agreements and use different currencies

What are regional trade agreements?

• Global environmental protection agreements

• Domestic economic policies

• International military alliances

• Treaties between two or more countries to reduce or eliminate trade barriers

Which of the following is a characteristic of a customs union?

• Imposition of higher tariffs and quotas on trade between member countries

• Elimination of tariffs and quotas on trade between member countries

• No impact on trade between member countries

• Complete isolation from international trade

What distinguishes a common market from a customs union?

• Free movement of goods, services, capital, and people among member countries

• No trade agreements among member countries

• Limited movement of capital and people among member countries

• Strict regulations on the movement of goods and services among member countries

What is the main feature of an economic and monetary union?

• The main feature of an economic and monetary union is the use of multiple currencies and independent monetary policies.

• The main feature of an economic and monetary union is the adoption of a single currency and a common monetary policy.

What is the purpose of regional trade agreements?

• To promote trade and economic competition between countries within a specific region

• To limit trade and economic cooperation between countries within a specific region

• To increase tariffs and barriers to trade within a specific region

• Promote trade and economic cooperation between countries within a specific region

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

• The European Union

• The British Commonwealth

• The Cingular and AT&T merger

• The Commonwealth of Independent States

2. The General Agreement on Tariffs and Trade (GATT) expanded considerably into a multilateral trading system called _____.

• EU

• NAFTA

• UN

• WTO