38. The movement toward regional economic integration has been most successful in _____.
39. Which of the following is true of regional economic integration?
40. Which of the following is the economic level corresponding to the least integration?
41. A(n) _____ is defined as a group of countries committed to removing all barriers to the
free flow of goods and services between each other, but pursuing independent external trade
policies.
42. Which of the following is true with regard to a free trade area?
43. _____ are the most popular form of regional economic integration, accounting for almost
90 percent of regional agreements.
44. Which of the following is true of the theoretically ideal free trade area?
45. Which of the following is true of the European Free Trade Association (EFTA)?
46. Three countries enter into an agreement to remove all tariffs and trade barriers between
them. They decide on a common trade policy with regard to nonmembers. Faced with political
backlash, the countries stop short of allowing mobility of factors of production such as labor and
capital. Which of the following levels of economic integration best describes this arrangement?
47. A(n) _____ has no barriers to trade between member countries, includes a common
external trade policy, and allows factors of production to move freely between members.
48. Which of the following is a feature of a common market?
49. Which of the following entails a closer economic integration and cooperation than a
common market?
50. Which of the following levels of economic integration involves the use of a common
currency, harmonization of members’ tax rates, and a common monetary and fiscal policy?
51. Which of the following is true with regard to an economic union?
52. Which of the following is a solution to the issue of how to make a coordinating
bureaucracy accountable to the citizens of member nations?
53. A(n) _____ is defined as a central political apparatus that coordinates the economic,
social, and foreign policy of the member states.
54. Which of the following supports the economic case for regional economic integration?
55. Which of the following is true of the political case for regional economic integration?
56. Which of the following is a major consideration that underlay the establishment of the
European Community?
57. Concerns about _____ arise because close economic integration demands that countries
give up some degree of their control over such key policy issues as monetary policy, fiscal policy,
and trade policy.