Chapter 10: Europe, Africa & the Middle East

Economic Union

Has the free flow of products and factors of production between members, a common external trade policy, a common currency a harmonized tax rates, and a common monetary and fiscal policy

Multinational Market Regions

Groups of countries that seek mutual economic benefit from reducing trade barriers

European Union

An economic and political grouping of countries of Europe that have over 15 countries in Western Europe as members

Customs Union

Eliminates trade barriers between member countries and adopts a common external trade policy

Common Market

Has no barriers to trade between member countries, a common external trade policy and the free movement of the factors of production

Free Trade Area

All barriers to the trade of goods and services among member countries are removed

Regional Cooperation Groups

Most basic economic integration and cooperation

Political Union

Most fully integrated form of regional cooperation, involves complete political and economic integration

Economic and Monetary Union (EMU)

Provision of the Maastricht Treaty, established parameters of the creation of a common currency for the EU, the euro

Which of the following best describes economic integration?

An arrangement between two or more countries to reduce barriers to trade and increase economic activity

Which of the following requires more cooperation and integration than the RCD?

FTA (free trade area)

What is the fta?

an agreement between two or more countries to reduce or eliminate customs duties and non-tariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.

What is one of the benefits to using a single currency in many EU countries

It allows people, money, and goods, to move freely from country to country

which statement is true regarding the pattern of world trade?

Developed countries have a greater global trade then developing countries

How many countries have united in the European union to discuss free trade and other global issues

27

Based on lecture, the common market __________.

adopts a set of of common external tariffs and removes all restrictions on the free flow of capital and labor among member nations

Once the Maastricth Treaty was ratified it allowed __________.

Free movement of goods, a common currency, cooperation between police and other authorities on crime terrorism and immigration issues

True or False. Based on lecture, ALL countries that are a part of the European Union are also part of the Economic and Monetary Union and the European Free Trade Association.

False

The euro is used as a unit of exchange for all EU member states except ________.

Denmark, Sweden and the UK

true or False. The European Union is a good example of a free trade area.

False