Question 1

Increased specialization leads to a fall in the standard of living.

Accepted Answer

Increased specialization typically leads to increased efficiency, which can lead to an increase in the standard of living through the availability of cheaper and higher quality goods and services.

Question 2

The summated output of the individual states is greater than the total output of the integrated bloc.

Accepted Answer

The summated output of the individual states cannot be greater than the total output of the integrated bloc as the integrated bloc includes the output of the individual states as well. Thus, the total output of the integrated bloc will always be greater than or equal to the summated output of the individual states.

Question 3

Tariff restrictions are the most likely reason behind the failure of economic blocs in Africa.

Accepted Answer

While tariff restrictions can be a factor, the failure of economic blocs in Africa is more often attributed to issues like political instability, lack of infrastructure, and diverse economic policies among member countries.

Question 4

CARICOM was formerly known as the Andean Pact.

Accepted Answer

CARICOM (Caribbean Community) is a regional organization of 15 Caribbean nations, whereas the Andean Pact (now known as the Andean Community) is a regional organization of four South American countries.

Question 5

NAFTA consists of Canada, Mexico, and the United States.

Accepted Answer

NAFTA (North American Free Trade Agreement) includes Canada, Mexico, and the United States.

Question 6

The level of integration of free trade areas is greater than that of customs unions.

Accepted Answer

The answer of The level of integration of free trade...

Question 7

An exporter from Canada would face the same tariff if importing into either Argentina or Brazil.

Accepted Answer

Argentina and Brazil are both members of the Mercosur trade bloc, which has a common external tariff. This means that an exporter from Canada would face the same tariff if importing into either country.

Question 8

Slow progress in liberalizing trade, especially for agricultural products, has prompted many developing countries to seek alternatives to the global trading system favored by the WTO.

Accepted Answer

Developing countries have expressed frustration with the slow progress in liberalizing trade, particularly for agricultural products, and have sought alternative arrangements such as regional trade agreements or bilateral free trade agreements. This suggests that they are seeking alternatives to the global trading system supported by the WTO.

Question 9

Some European countries have political union due to the presence of a common currency.

Accepted Answer

The presence of a common currency, like the Euro, does not imply a political union. The European Union is a political and economic union, but not all EU countries use the Euro, and not all Eurozone countries are part of a political union beyond the EU framework.

Question 10

The European Union is the world's largest, and most advanced regional economic bloc.

Accepted Answer

The European Union (EU) is indeed the world's largest and most advanced regional economic bloc with a GDP worth over 15 trillion USD and a population of more than 440 million people. It is also the world's biggest trading bloc and has a single market with free movement of goods, services, capital, and people.

Question 11

Harmonization of standards is one of the steps taken by the EU to become an economic union.

Accepted Answer

Harmonization of standards is one of the measures taken by the EU to achieve a common market and economic integration. This helps to eliminate trade barriers and ensure that goods and services can move freely within the EU. Harmonization involves setting common standards and regulations that apply to all member states, which reduces the need for companies to comply with different rules in different countries.

Question 12

The Caribbean Community (CARICOM) is progressing toward establishing the Caribbean Single Market, a common market that allows for a greater degree of free movement of products, capital, and labor.

Accepted Answer

The answer of The Caribbean Community (CARICOM) is progressing toward...

Question 13

The introduction of the euro -the EU's common currency and now one of the world's leading currencies-meant that the monetary power of national governments within the EU was taken over by the European Central Bank.

Accepted Answer

The introduction of the euro did mean that the monetary power of national governments within the EU was taken over by the European Central Bank.

Question 14

The level of integration of a political union is the highest.

Accepted Answer

A political union involves a high level of integration among member states, including sharing of a common currency, foreign policy, defense, and other aspects of governance.

Question 15

The Common Agricultural Policy (CAP) has long been a fixture of the North American bloc.

Accepted Answer

The Common Agricultural Policy (CAP) is a policy of the European Union and is not applicable to North America.

Question 16

In economic unions, member countries often adopt standardized tax rates and exchange rates.

Accepted Answer

Economic unions such as the European Union, adopt standardized tax rates and exchange rates to promote economic integration and facilitate trade among member countries.

Question 17

Submersion of all separate national institutions and perfect unification of all policies by a common organization is a characteristic of economic unions.

Accepted Answer

Economic unions aim for economic integration and cooperation, but they do not necessarily require the submersion of all separate national institutions or the perfect unification of all policies. Some economic unions may involve partial or selective harmonization of policies while maintaining separate national institutions.

Question 18

Economic nationalism refers to the economic interdependence experienced by closely associated countries that have formed an alliance.

Accepted Answer

Economic nationalism refers to the prioritization of domestic economic interests over global economic interests. It can include policies such as protectionism and tariffs aimed at limiting the import of foreign goods and promoting domestic industries. It is different from economic interdependence, which involves the mutual benefits and interconnectedness of economies through trade, investment, and other economic activities.

Question 19

MERCOSUR, an economic bloc in Latin America, is an example of an economic union.

Accepted Answer

MERCOSUR is primarily a customs union, which involves member countries adopting a common external tariff on goods from non-member countries, rather than an economic union, which would involve more integrated economic policies and possibly a common currency.

Question 20

Countries in free trade areas only import and export products and services within the regional economic bloc.

Accepted Answer

Countries in free trade areas can trade with nations outside the bloc, but they benefit from reduced tariffs and barriers within the bloc.

Quiz 9: Regional Economic Integration