IB CHAP 8

The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________.

• regional economic integration

• protectionism

• mercantilism

• economic nationalism

Regional economic integration is also referred to as ________.

• mercantilism

• nationalism

• protectionism

• regionalism

A group of nations in a geographic area undergoing economic integration is called a ________.

• born global firm

• maquiladora

• regional trading bloc

• Eurocurrency market

Which of the following is an important goal of regional economic integration?

• to increase the selling prices of products

• to raise the living standards of people

• to limit the choice of products available to customers

• to establish a socialist government

Which of the following is the lowest extent of regional economic integration?

• free trade area

• political union

• common market

• customs union

Which of the following is the greatest extent of regional economic integration?

• free trade area

• political union

• common market

• customs union

Economic integration whereby countries remove all barriers to trade among themselves, but each country determines its own barriers against nonmembers, is called a(n) ________.

• economic union

• customs union

• common market

• free trade area

Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and set a common trade policy against nonmembers is called a ________.

• free trade area

• customs union

• common market

• preferential trade area

Higher levels of trade between nations result in ________.

• higher product prices

• lesser specialization

• greater purchasing power

• trade diversion

Which of the following is a potential drawback of regional economic integration?

• ethnocentricity

• trade diversion

• economic nationalism

• protectionism