#1
Which of the following is an example of economic integration?
A group of countries forming a customs union
ExplanationCustoms union exemplifies economic integration.
#2
What is the main goal of economic integration?
To promote international cooperation
ExplanationPromoting international cooperation is the primary goal.
#3
What is the term used to describe the removal of all barriers to trade among member countries?
Trade liberalization
ExplanationTrade liberalization denotes the removal of trade barriers.
#4
Which of the following trade agreements aims to create a single market among its member countries?
European Union (EU)
ExplanationThe EU aims to create a single market among its members.
#5
Which of the following is an example of a regional trade bloc?
North American Free Trade Agreement (NAFTA)
ExplanationNAFTA is a regional trade bloc.
#6
What does the term 'tariff' refer to in international trade?
A tax on imports or exports
ExplanationTariff is a tax imposed on imports or exports.
#7
Which of the following is not a stage of economic integration?
Embargo
ExplanationEmbargo is not a stage of economic integration.
#8
What is the difference between a free trade area and a customs union?
In a free trade area, countries maintain individual tariffs; in a customs union, they adopt a common external tariff.
ExplanationFree trade areas maintain individual tariffs, whereas customs unions adopt a common external tariff.
#9
What is the term used to describe the situation where a country exports more than it imports?
Trade surplus
ExplanationA trade surplus occurs when exports exceed imports.
#10
Which of the following organizations promotes fair competition and regulates international trade rules?
World Trade Organization (WTO)
ExplanationWTO promotes fair competition and regulates trade rules.
#11
Which of the following trade agreements involves the United States, Canada, and Mexico?
North American Free Trade Agreement (NAFTA)
ExplanationNAFTA involves the US, Canada, and Mexico.
#12
What is the primary purpose of trade blocs?
To encourage economic integration among member countries
ExplanationTrade blocs aim to encourage economic integration.
#13
Which of the following is an example of an economic union?
European Union (EU)
ExplanationThe EU is an example of an economic union.
#14
What is the concept of 'comparative advantage' in international trade?
Countries should focus on producing goods they can produce at the lowest cost.
ExplanationCountries should produce goods with the lowest cost.
#15
Which of the following is not a characteristic of globalization?
Promotion of protectionist policies
ExplanationGlobalization doesn't promote protectionist policies.
#16
Which of the following organizations aims to facilitate financial stability and international monetary cooperation?
International Monetary Fund (IMF)
ExplanationIMF aims to facilitate financial stability and cooperation.
#17
What is the main purpose of the World Trade Organization (WTO)?
To promote global economic integration
ExplanationWTO's main purpose is to promote global economic integration.