A. free trade area
B. customs union
C. common market
D. monetary union
Regional Trading Arrangements
Which level of economic integration best applies to the U.S economy ?
A. free trade area
B. customs union
C. common market
D. monetary union
Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?
A. free-trade area
B. customs union
C. common market
D. monetary union
When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists ?
A. trade creation
B. trade diversion
C. dynamic welfare effects
D. comprehensive welfare effects
Trade creation takes place when ?
A. a country moves from autarky to free trade
B. a movement to a customs union reduces the cost of trade through standardization
C. economic integration results in a movement in product origin to a lower-cost member country
D. economic integration results in a shift in product origin from a lower cost nonmember country to a member country having higher costs
Under the EU’s Common Agricultural Policy, a variable import levy equals the ?
A. amount the which the EU’s support price exceeds the world price
B. amount by which the world price exceeds the EU’s support price
C. support price of the EU
D. world price
The European Union has achieved all of the following except ?
A. adopted a common fiscal policy for member nations
B. established a common system of agricultural price supports
C. disbanded all tariffs between its member countries
D. levied common tariffs on products imported from nonmembers
The European Union is an example of a/an ?
A. customs union
B. economic union
C. common market
D. free trade area
The implementation of the European Union has ?
A. made it harder for Americans of compete against the Germans in the British market
B. made it easier for Americans to compete against the Germans in the British market
C. made it harder for Americans to compete against the Japanese in the British market
D. made it easier for Americans to compete against the Japanese in the British
As of 2002, the …….. became the official currency union of the European Monetary System ?
A. dollar
B. mark
C. franc
D. euro