Regional Integration Quizz 1

What is the aim of regional economic integration?

• To promote political weight

• To increase trade barriers

• To enhance economic efficiency

• To encourage policy coordination

What is a Regional Trade Agreement (RTA)?

• An agreement to enhance cooperation and reduce trade barriers among countries in a geographic region

• An agreement to increase trade barriers among countries

• An agreement to promote political cooperation

• An agreement to establish common policies and institutions

Which of the following is an example of a regional economic group?

• OPEC

• ASEAN

• WTO

• UNESCO

What are the rationales for Free Trade Agreements?

• To promote free trade and stimulate competition

• To promote trade diversion

• To encourage political cooperation

• To lower national sovereignty

What is the main impediment of regional trading blocs?

• Lowered political weight

• Trade diversion

• Equal distribution of benefits within a country

• Higher national sovereignty

What is the characteristic of a Free Trade Area (FTA)?

• No external tariffs

• Internal tariffs among members

• No internal tariffs among members

• Common external tariffs

What is the characteristic of a Common Market?

• Internal tariffs among members

• Common external tariffs

• Factor mobility

• Common currency

What is the characteristic of an Economic Union (Monetary Union)?

• Common market plus common currency

• Customs union plus factor mobility

• No internal tariffs among members

• Common external tariffs

What is the abbreviation for the European Free Trade Association?

• EFTA

• NAFTA

• AFTA

• EU

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

• To establish a common currency

• To promote factor mobility

• To reduce trade barriers among member countries

• To encourage political cooperation