The European Union has achieved all of the following except:
Adopted a common fiscal policy for member nations
B. Established a common system of agricultural price supports
C. Disbanded all tariffs among its member countries
D. Levied common traiffs on products imported from nonmembers
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When the United States, Canada, and Mexico from a free trade area, and Mexico beings importing a product from Canada rather than from the lowest cost world producer.
A. Trade diversion occurs
B. Trade creation occurs
C. World welfare rises
D. World welfare falls to zero
When the formation of a free trade area results in the reduction of trade with nonmember nations in favor of member countries,____ occurs.
A. Trade devaluation
B. Trade revaluation
C. Trade creation
D. Trade diversion
Which country is not a member of the European Union?
A. Spain
B. Germany
C. France
D. Iceland
The implementation of the European Union has:
A. Made it harder for Americans to compete against the Germans in the British market
B. Made it easier for Americans to compete against the Germans in the British market
C. Made it harder for Americans to compete against the Japanese in the British market
D. Made it easire for Americans to compete against the Japanese in the British market