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.Management Sciences
Category: Regional Trading Arrangements
Under the EU’s Common Agricultural Policy, a variable import levy equals the ?
A. amount the which the EU’s support price exceeds the world price
B. amount by which the world price exceeds the EU’s support price
C. support price of the EU
D. world price
Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?
A. free-trade area
B. customs union
C. common market
D. monetary union
The European Monetary Union is an example of a ?
A. customs union
B. free trade area
C. reciprocal trade agreement
D. monetary union
A ____ is a regional trading bloc in Which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not member ?
A. free trade area
B. customs union
C. common market
D. monetary union
If A forms a customs union with B, A will import ?
A. 400 units from B
B. 200 units from C
C. 200 units from each
D. 400 units from B and 200 units from C
A positive, dynamic effect of economic integration is illustrated by ?
A. trade diversion effect
B. increased monopoly power of firms
C. decrease customs costs
D. economy-of-scale effect
When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
A. free trade area
B. customs union
C. common market
D. economic union
Members of the EU find that trade creation|| is fostered when their economies are ?
A. highly competitive
B. highly noncompetitive
C. small in economic importance
D. geographically distant
Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of ?
A. variable levies
B. export subsidies
C. trigger prices
D. countertrade
The European Union has achieved all of the following except ?
A. adopted a common fiscal policy for member nations
B. established a common system of agricultural price supports
C. disbanded all tariffs between its member countries
D. levied common tariffs on products imported from nonmembers
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