ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To increase trade barriers
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To promote competition among them
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To decrease trade among member countries
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To create political ties and improve the economy
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Detailed explanation-1: -The EU represents one in a series of efforts to integrate Europe since World War II. At the end of the war, several western European countries sought closer economic, social, and political ties to achieve economic growth and military security and to promote a lasting reconciliation between France and Germany.
Detailed explanation-2: -The EU has strengthened economic governance, designed a system to safeguard financial stability in the euro area, improved Member States’ public finances and promoted reforms to encourage investment.
Detailed explanation-3: -Business, growth and trade The EU is the largest trade bloc in the world. It is the world’s biggest exporter of manufactured goods and services, and the biggest import market for over 100 countries. Free trade among its members was one of the EU’s founding principles. This is possible thanks to the single market.
Detailed explanation-4: -The EU has started to act more as a nation state. (i) European integration after 1945 was aided by the cold war. Under the Marshall plan, the OEEC was established in 1948 to channel aid to the west European states. (ii) The process acquired a political dimension with the creation of the European Parliament.
Detailed explanation-5: -The euro has eliminated the costs of exchange rate fluctuations within the euro area. This protects consumers and businesses within the euro area from costly swings in currency markets, which, in some countries, used to undermine confidence, discourage investment and cause economic instability.