Regional Trade Agreements Quiz

What is the primary goal of a Regional Trade Agreement (RTA)?

• To increase global interest rates

• To reduce trade barriers among member countries

• To control inflation across the region

• To regulate internal migration

Which of the following is a type of regional trade agreement?

• Central bank treaty

• Common market

• Free investment zone

• Bilateral exchange

A customs union involves:

• Free trade among members and a common external tariff

• Independent trade policies for each member

• Shared political systems

• Only tariff removal, not quotas

The European Union (EU) is an example of which type of RTA?

• Free trade area

• Customs union

• Common market

• Economic union

What distinguishes a common market from a customs union?

• It includes shared currencies

• It allows free movement of goods only

• It allows free movement of goods, services, capital, and labor

• It eliminates all internal regulations

Which of the following is not a benefit of regional trade agreements?

• Increased market access

• Reduced competition

• Economies of scale

• Enhanced cooperation

Which agreement is an example of a Free Trade Area?

• OPEC

• NAFTA (now USMCA)

• ASEAN Economic Community

• WTO

Trade creation in RTAs refers to:

• The diversion of trade from efficient producers

• The increase in trade among member countries due to lower barriers

• The reduction in trade with non-members

• The formation of trade monopolies

Which challenge is commonly associated with regional trade agreements?

• Overdependence on agriculture

• Trade diversion from more efficient global producers

• Rising national debt

• Decreasing foreign reserves

A key feature of economic unions compared to other RTAs is:

• Only trade agreements

• Common external policies

• Unified economic and fiscal policies

• Restricted labor movement