Members of the European Union find that "trade creation" is fostered when their economies are:
A) Highly competitive
B) Highly noncompetitive
C) Small in economic importance
D) Geographically distant

Question

Quizplus · Accepted Answer

When member economies of the European Union are highly competitive, they are able to produce high-quality goods and services at a lower cost, which promotes trade creation within the Union. This occurs as member countries specialize in the production of the goods and services that they are comparatively more efficient in producing, which leads to increased trade and higher levels of economic integration within the Union. Therefore, option A is the best choice.

Members of the European Union Find That "Trade Creation" Is