CHAPTER 11 EMERGING MARKETS & ECONOMIC INTEGRATION

What is one major benefit of trade creation in economic integration?

• Increased tariffs on imported goods

• Reduced selection of goods and services

• Access to cheaper and more diverse products

• Decreased consumer spending

Which of the following is a political benefit of economic integration?

• Increased military spending

• Political cooperation to address global challenges

• Isolation from global markets

• Reduced diplomatic relations

How does economic integration affect employment opportunities?

• It reduces job mobility

• It limits foreign investment

• It creates more jobs and allows labor mobility

• It discourages technological diffusion

What does trade diversion lead to?

• More efficient trade with non-member countries

• Trade with higher-cost producers in member countries

• Increased national sovereignty

• Reduced trade barriers globally

How can economic integration affect national sovereignty?

• It strengthens national decision-making

• It eliminates the need for international cooperation

• It may reduce a country's control over its own policies

• It increases independence from global institutions

Which of the following best describes a Free Trade Area?

• Removal of trade barriers and adoption of a common external trade policy

• Free movement of goods, services, labor, and capital

• Removal of trade barriers among member countries

• Central political apparatus coordinating member states' policies

What distinguishes a Customs Union from a Free Trade Area?

• Free movement of labor and capital

• Adoption of a common external trade policy

• Political integration

• Use of a common currency

Which of the following is a characteristic of a Common Market?

• Independent trade policies with non-members

• No free movement of labor

• Free movement of goods, services, and factors of production

• No coordination of fiscal policies

MERCOSUR aims to become which level of economic integration?

• Free Trade Area

• Customs Union

• Common Market

• Economic Union

What is the role of the European Parliament in the EU?

• Sets tariffs for non-member countries

• Coordinates trade policies among member states

• Is directly elected and plays a role in coordinating policies

• Controls immigration policies