INTB 200 Test 2 Exam #1 Questions with correct
answers
Customs Union - ✔✔A group of countries committed to (1) removing all barriers
to the free flow of goods and services between each other and (2) the pursuit of a
common external trade policy.
Common market - ✔✔a group of countries that acts as a single market, without
trade barriers between member countries
Economic Union - ✔✔A group of countries committed to (1) removing all barriers
to the free flow of goods, services, and factors of production between each other,
(2) the adoption of a common currency, (3) the harmonization of tax rates, and
(4) the pursuit of a common external trade policy.
Trade Creation - ✔✔occurs when low cost producers within the free trade area
replace high cost domestic producers
Trade diversion - ✔✔occurs when higher cost suppliers within the free trade area
replace lower cost external suppliers
European Commission - ✔✔Responsible for proposing EU legislation,
implementing it, and monitoring compliance
European council - ✔✔The heads of state of EU members and the president of
the European Commission
answers
Customs Union - ✔✔A group of countries committed to (1) removing all barriers
to the free flow of goods and services between each other and (2) the pursuit of a
common external trade policy.
Common market - ✔✔a group of countries that acts as a single market, without
trade barriers between member countries
Economic Union - ✔✔A group of countries committed to (1) removing all barriers
to the free flow of goods, services, and factors of production between each other,
(2) the adoption of a common currency, (3) the harmonization of tax rates, and
(4) the pursuit of a common external trade policy.
Trade Creation - ✔✔occurs when low cost producers within the free trade area
replace high cost domestic producers
Trade diversion - ✔✔occurs when higher cost suppliers within the free trade area
replace lower cost external suppliers
European Commission - ✔✔Responsible for proposing EU legislation,
implementing it, and monitoring compliance
European council - ✔✔The heads of state of EU members and the president of
the European Commission
