Economic Integration Quiz

International economic integration refers to:

• Military alliances

• Political unification

• Shared markets

• Formation of economic unions

• Removal of trade barriers

Main types of economic integration include:

• Free trade areas

• Customs unions

• Economic unions

• Complete political unions

• Currency fragmentation

The goals of economic integration are:

• Economic efficiency

• Trade liberalization

• Market expansion

• Increased protectionism

• Cultural assimilation

Benefits of integration include:

• Cross-border investments

• Decreased competition

• Larger consumer base

• Improved infrastructure

• Skills exchange

The European Union is an example of:

• Development bank

• Military pact

• Free trade agreement

• Customs union

• Economic union

Challenges of integration include:

• Enhanced education

• Uneven development

• Loss of sovereignty

• Economic dependency

• Free movement of labor

Examples of regional economic organizations include:

• OPEC

• NATO

• ASEAN

• European Union (EU)

• Eurasian Economic Union (EAEU)

A customs union differs from a free trade area by:

• Allowing political merger

• Removing all borders

• Supporting immigration only

• Implementing shared defense

• Adopting a common external tariff

Currency integration means:

• Currency devaluation

• Competing exchange rates

• Establishing a monetary union

• Using a common currency

• Avoiding digital payments

Drawbacks of integration for weaker economies include:

• Increase in innovation

• Decreased inequality

• Trade deficits

• Loss of domestic industries

• Dependency on stronger economies