ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The EU increases trade barriers in Europe.
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It promotes economic cooperation among neighboring countries.
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It has the fewest member nations.
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The EU established a common currency among the participating nations.
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Detailed explanation-1: -When it comes to the free movement of goods, the EU is a customs union; the NAFTA is a free trade area. A free-trade area is a region within which all tariffs and quotas have been eliminated, but each country retains its own regime of tariffs and quotas facing the rest of the world.
Detailed explanation-2: -How are NAFTA, the EU, and ASEAN similar? Each increases trade barriers among neighboring nations. Each decreases trade barriers among neighboring nations. Each promotes free trade with all nations of the world.
Detailed explanation-3: -The Asean economic community has more than 650 million consumers. The biggest difference between them is that Asean is an inter-governmental organisation and the EU is a supranational organisation. In the case of the EU, its member states have pooled their sovereignty in certain areas, such as trade and environment.
Detailed explanation-4: -A single currency makes the euro zone a more attractive region for non-EU countries to do business with, thus promoting trade and investment.