________ within the union are favoured more over efficient firms outside the union.
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2
Bilateral agreements
________: between two countries → easier to implement.
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3
Monetary union
________: agreement between two or more countries creating a single currency.
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4
Trade diversion
________: when the entry of a country into a customs union leads to the protection of a good or service.
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5
Multilateral agreements
________: between two or more countries → beneficial to more people.
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6
Bilateral agreements
between two countries → easier to implement
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7
Multilateral agreements
between two or more countries → beneficial to more people
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8
Trading bloc
an agreement where trade barriers ar reduced or eliminated among participating members
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9
Trade creation
occurs when the entry of a country into a custom union leads to the production of a good or service transforming from a high-cost producer to a low-cost producer
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10
Trade diversion
when the entry of a country into a customs union leads to the protection of a good or service
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11
Monetary union
agreement between two or more countries creating a single currency
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12
Transparency
International price of goods can be easily compared
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13
lower transaction costs
single currency, no need to change currency
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14
certainty
price changes are more predictable
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15
Loss of economic sovereignty
individual countries cannot set their own interest rates
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