Economic Integration

What kind of economic integration arrangement has common policies on product regulation, and free movement of goods, services, capital and labour?

• Common markets

• Preferential trading area

• Free trade areas

• Custom unions

It is correct to say that countries within a customs union have...

• Common external barriers

• Common currency and a common central bank

• Common policies on product regulation.

• None of the above

The EU is better seen as an example of...

• A Economic and monetary union

• Free trade area

• A Customs Union

• A Complete Economic integration

The following image demonstrates Donald Trump's preference for....

• Globalism

• Internationalism

• Protectionism

• Americanization

What is a monetary union?

• situation that involves a common currency, such as the Euro as well as universal monetary policy.

• an agreement between two nations or trading groups that gives each party favoured trade status.

• an agreement between a number nations or trading groups that give each party favoured trade trade status.

• an agreement between two or more countries to lower trade barriers between each other on particular products

What is a bilateral agreement?

• situation that involves a common currency, such as the Euro as well as universal monetary policy.

• an agreement between two nations or trading groups that gives each party favoured trade status.

• an agreement between a number nations or trading groups that give each party favoured trade trade status.

• an agreement between two or more countries to lower trade barriers between each other on particular products

What is a multilateral agreement?

• situation that involves a common currency, such as the Euro as well as universal monetary policy.

• an agreement between two nations or trading groups that gives each party favoured trade status.

• an agreement between a number nations or trading groups that give each party favoured trade trade status.

• an agreement between two or more countries to lower trade barriers between each other on particular products

What is a preferential trade agreement?

• situation that involves a common currency, such as the Euro as well as universal monetary policy.

• an agreement between two nations or trading groups that gives each party favoured trade status.

• an agreement between a number nations or trading groups that give each party favoured trade trade status.

• an agreement between two or more countries to lower trade barriers between each other on particular products

What is NOT an ADVANTAGE of a monetary union?

• Single currency eliminates exchange risk uncertainty

• Monetary policy can no longer be used as a tool of economic policy

• Single currency encourages price transparency

• Single currency eliminates transaction costs

• Single currency promotes higher level of inward investment

What is NOT an DISADVANTAGE of a monetary union?

• Exchange rate can no longer be used as adjustment tool

• Monetary policy can no longer be used as a tool of economic policy

• Monetary policy impacts on each country differently

• Fiscal policy is constrained by different countries aims

• Single currency promotes higher level of inward investment