Which economic integration scheme is solely intended to abolish trade restrictions among member countries, while setting up common tariffs against nonmembers?
A. Economic union
B. Common market
C. Free trade area
D. Customs union
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By 1992 the European Union had become a full-fledged
A. Economic union
B. Monetary union
Common marcket
D. Fiscal union
Which device has the European Union used to equalize farm-product import prices with politically determined European Union prices, regardlessof shifts in world prices?
A. Variable levies
B. Import quotas
C. Import subsidies
Domestic content regulations
Which trade instrument has the European Union used to insulate its producers and consumers of agricultural goods from the impact of changing demand and supply conditions in the rest of the world?
A. Domestic content regulations
B. Variable import levies
C. Voluntary export quotas
D. Orderly marketing agreements
Assume that the formation of a customs union turns out to include the lowest-cost world producer of the product in question. Which effect could not occur for the participating countries?
A. Trade creation-production effect
B. Trade creation-consumption effect
C. Trade diversion
D. Scale economies and competition