Regional Trading Arrangements

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

A. relatively high; relatively large
B. relatively high; relatively small
C. relatively low ; relatively large
D. relatively low ; relatively small

A. trade diversion effect
B. increased monopoly power of firms
C. decrease customs costs
D. economy-of-scale effect

A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion

A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion

A. $0
B. $10,000
C. $20,000
D. $40,000

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

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

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

A. dollar
B. mark
C. franc
D. euro