Regional economic integration primarily aims to ___ among member countries.

Enhance economic prosperity and cooperation

True or False: A customs union allows member countries to maintain their own external tariffs.

False; a customs union adopts a common external tariff.

What is one of the key advantages of forming a free trade area?

Member countries eliminate tariffs and trade barriers on goods traded among them.

Fill in the blank: A political union represents the ___ level of regional economic integration.

Highest

Explain how regional economic integration can improve living standards.

Economic growth resulting from integration can enhance living standards and reduce poverty.

True or False: Economic interdependence can lead to increased political tensions among member countries.

False; it generally fosters peace and stability.

What is one challenge faced by regional economic communities in Africa?

Limited intra-regional trade due to non-tariff barriers.

Fill in the blank: The NAFTA agreement was established in ___ between the United States, Canada, and Mexico.

1994

What are some potential negative impacts of regional economic integration?

Job disruption, increased inequality, and environmental impacts.

True or False: The ASEAN Free Trade Area eliminated only tariffs but not non-tariff barriers.

True; non-tariff barriers still persist.

Fill in the blank: An economic union includes a common market and further ___ of economic policies.

Harmonization

How does regional economic integration facilitate technology transfer?

Increased trade and investment allow for the sharing of technology and expertise.

What is a major disadvantage of regional economic integration?

Loss of sovereignty where member states may cede control over trade policies.

Fill in the blank: The European Union allows free movement of goods, services, capital, and ___ within its borders.

People

What is one reason countries pursue regional economic integration?

To counterbalance the influence of larger economies in global trade.

True or False: Increased competition resulting from integration can hinder innovation.

False; it typically drives firms to innovate and become more efficient.

What role does specialization play in regional economic integration?

It allows member countries to focus on producing goods and services in which they are most efficient.

Fill in the blank: The primary goal of regional economic integration is to promote ___ among member countries.

Trade

How does regional integration contribute to political stability?

By fostering economic ties, it reduces the likelihood of conflicts between member nations.

What are the implications of trade diversion in regional economic integration?

It may shift trade from lower-cost non-member producers to higher-cost regional ones.

Fill in the blank: The ASEAN aims to create a single market and production base while ___ the development gap among member nations.

Narrowing

What is a potential advantage of a monetary union?

It allows member countries to adopt a common currency, facilitating trade.

True or False: Economic integration guarantees that all member countries will benefit equally.

False; benefits may not be evenly distributed, leading to disparities.

What is one significant challenge for the EU regarding regional integration?

Managing the diverse economic conditions and policies of its member states.

Fill in the blank: Regional economic integration can help in ___ by creating larger markets for businesses.

Attracting investment