Scenario: Zucoland
Zucoland,a small-sized country just south of the Andes mountain range,was invited to join a regional trading bloc.The government of Zucoland is considering the benefits and costs of joining such a bloc.The government is attracted by the fact that this trading bloc requires Zucoland to give up the least amount of sovereignty compared to other types of blocs.
-Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?
A) Trade diversion
B) Increased national sovereignty
C) Greater consensus
D) Production shifts to low-wage nations
Correct Answer:
Verified
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