A. wages in the United States will rise relative to Mexican wages
B. American jobs will be lost to workers in Mexico
C. The environment is not adequately protected by NAFTA
D. None of the above
0
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Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
0
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A positive, dynamic effect of economic integration is illustrated by ?
A. relatively high; relatively large
B. relatively high; relatively small
C. relatively low ; relatively large
D. relatively low ; relatively small
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_________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?
A. trade diversion effect
B. increased monopoly power of firms
C. decrease customs costs
D. economy-of-scale effect
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________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion
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If A forms a customs union with C, the value of trade diversion will be ?
A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion
0
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If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
A. $0
B. $10,000
C. $20,000
D. $40,000
0
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Trade diversion takes place when ?
A. 400 units from B
B. 200 units from C
C. 200 units from each
D. 400 units from B and 200 units from C
0
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The implementation of a common market involves all of the following except ?
A. a country moves from autarky to free trade
B. a movement to a customs union reduces the costs of trade through standardization economic integration results in a
C. economic integration results in a movement in product origin to a lower cost member country
D. economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
0
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As of 2002, the ________ became the official currency union of the European Monetary System ?
A. elimination of trade restrictions among member countries
B. a common tax system and monetary union
C. prohibition to restriction on factor movements
D. a common tariff levied in imports from nonmembers