Question

3. Which structure represents a higher degree of economic integration – a free trade agreement or...

3. Which structure represents a higher degree of economic integration – a free trade agreement or a customs union? Explain the difference between the two.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A free trade union is just an agreement between two nations that they will not charge any tariff for the traded goods between them, or they will reduce the tariff to a minimum agreed level. They still charge tariff from the rest of the world and can have different tariff rates.Like NAFTA is a free trade area.

A custom union is the trade block which have a free trade area + they charge a common external tariff from the rest of the world. EU is custom union.

Custom union is more economically integrates between the two.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Freedom of relocation of factors of production is typical to this form of regional integration Free...
Freedom of relocation of factors of production is typical to this form of regional integration Free trade Customs union Common market Economic community
Discuss the difference between a Free Trade Area, a Customs Union, a Common Market and an...
Discuss the difference between a Free Trade Area, a Customs Union, a Common Market and an Economic and Monetary Union. Provide at least one real-world example for each.
I need a comment about this post / What I like about this post What are...
I need a comment about this post / What I like about this post What are the five levels (from lowest to highest) of regional economic integration? Explain. The lowest level of economic integration is Free Trade. Free trade area seek to remove all barriers to trade among themselves but where each country determines its own barriers against nonmembers. The next degree of integration is Customs Union. Customs union includes Free trade guidelines but sets common trade policy against nonmembers....
Discuss TWO economic benefits, and TWO economic harms, of the North American Free Trade Agreement (NAFTA),...
Discuss TWO economic benefits, and TWO economic harms, of the North American Free Trade Agreement (NAFTA), to the United States. - Discussions must be elaborate and well-written to earn full points.
Discuss the objectives of the ASEAN Free Trade Agreement (AFTA) and its impacts on the Malaysian...
Discuss the objectives of the ASEAN Free Trade Agreement (AFTA) and its impacts on the Malaysian economy. Following this, apply David Ricardo’s Comparative Advantage Theory in the context of the AFTA economic integration.
The government of the United States is considering revising the North American Free Trade Agreement (NAFTA),...
The government of the United States is considering revising the North American Free Trade Agreement (NAFTA), which could imply a possible departure from the agreement. For its part, the United Kingdom is in the process of leaving the European Union (BREXIT). Explain the implications of these changes in regional agreements in multinational companies.
1.) According to the factor price equalization theorem, if Thailand consummates a free trade agreement with...
1.) According to the factor price equalization theorem, if Thailand consummates a free trade agreement with Australia, what should happen to Thai and Australian wages (you may assume that Thailand is the relatively capital abundant country). 2.) Suppose there are two factors of production in Guatemala, land and unskilled workers. If you read that the union representing unskilled laborers is protesting the proposed free trade agreement with Mexico, what can you conclude about relative factor abundance in Guatemala? Explain.
QUESTION 1 A benefit of being part of a customs union (relative to not being in...
QUESTION 1 A benefit of being part of a customs union (relative to not being in the customs union) is, a. being in a customs union makes it more likely that firms can achieve economies of scale b. a customs union tends to have more bargaining power in trade agreements than a country has by itself c. both A and B d. neither A nor B QUESTION 2 A key difference between a customs union and a free trade area...
Under a common market agreement, you would find Multiple Choice absence of a common external trade...
Under a common market agreement, you would find Multiple Choice absence of a common external trade policy with regard to nonmembers. free movement of factors of production between member nations. establishment of barriers to the free flow of goods between member nations. a lack of administrative machinery to oversee trade relations with nonmembers. mandatory use of a common currency among member nations. Which of these situations shows how concerns over national sovereignty can act as an impediment to regional economic...
1. Which of the following would you suggest is a drawback(s) of a regional trading bloc?...
1. Which of the following would you suggest is a drawback(s) of a regional trading bloc?   Loss of national sovereignty    Shifts in employment    All of the above    Trade diversion 2. Businesspeople from ________ often arrive after the scheduled meeting time and prefer to spend time building personal trust before discussing business.   the United States    Northern Europe    Canada    Latin America 3. Country M wants its regional trading group of countries to have a common currency and common monetary and fiscal policies....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT