Which organization of nations permits free trade among its members in industrial goods, while each member maintains freedom in its trade policies toward non-member countries?
A. European Union
Benelux
Council for Mutual Economic Assistance
D. North American Free Trade Association
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Which of the following organizations is considered a regional trading arrangement?
A. Organiaztion of Petroleum Exporting Countries
B. North Atlantic Treaty Organization
C. Benelux
D. International Tin Agreement
When products from high-cost suppliers within a customs union replace imports from a low-cost nation that is not a member of the customs union, there exist(s):
A. Dynamic welfare losses
B. Dynamic welfare gains
C. Trade creation
D. Trade diversion
Which form of economic integration occurs when participating countries abolish tariffs on trade among themselves, establish a common tariff on imports from nonmembers, and permit free movement of captial and labor within the organization?
A. Free trade areaFreetradearea
B. Economic unionEconomicunion
Common market
D. Monetary union
A static welfare effect resulting form the formation of the European Union would be:
A. Economies of scale
B. Trade diversion
C. Inveatment incentives
D. Increased competition