Trade blocs

What is the main characteristic of Free Trade Areas (FTAs)?

• Restriction on the movement of factors of production

• Imposition of import tariffs and quotas

• Free movement of goods and services within the bloc without customs duties

• Establishment of a common external tariff

Which trading bloc goes beyond FTAs by establishing a common external tariff on imports from non-member countries?

• Free Trade Areas (FTAs)

• Customs Unions

• Common Markets

• Monetary Unions

What is a key condition necessary for the success of a Monetary Union like the Eurozone?

• Lack of political commitment

• Exclusion of non-member countries

• Trade diversion

• Fiscal discipline

What is one of the benefits of Regional Trade Agreements (RTAs) mentioned in the text?

• Trade diversion

• Complexity in compliance

• Increased trade among member countries

• Exclusion of member countries

What is a key function of the World Trade Organization (WTO) in promoting global trade liberalization?

• Facilitating trade diversion

• Resolving trade disputes through a rules-based system

• Providing preferential treatment to member countries

• Imposing trade barriers

What is a possible conflict between Regional Trade Agreements (RTAs) and the WTO?

• Trade discrimination against non-members

• Preferential treatment to non-members

• Consistent rules between RTAs and WTO agreements

• Lack of dispute resolution mechanisms

What is the main characteristic of Customs Unions?

• Restriction on trade barriers

• Imposition of import tariffs and quotas

• Establishment of a common external tariff

• Free movement of factors of production

What is one of the costs is related to Regional Trade Agreements (RTAs)?

• Efficiency gains

• Political cooperation

• Increased trade among member countries

• Trade diversion

What is the role of the World Trade Organization related to trade policies of member countries?

• Providing technical assistance

• Monitoring trade policies

• Resolving trade disputes

• Facilitating trade negotiations

What is a potential consequence of deeper integration in trading blocs?

• Reduced production costs

• Ceding some economic sovereignty

• Lack of economic imbalances

• Increased trade with non-members