1. Which feature of an economic union differentiates itfrom a common market?

A. removal of barriers to the trade of goods and services amongmember countries

B. adoption of a common external trade policy

C. mobility of factors of production among member countries

D. harmonization of tax rates of member countries

E. removal of barriers to cross-border flow of capital

2. Which ofthe following is a political argument for regional economicintegration?

• A. It reduces thepotential for violent conflict.

• B. Itallows countries to specialize in the production of goods andservices that they can produce most efficiently.

• C. It tendsto increase national sovereignty.

• D. It stimulateseconomic growth.

• E. Itincreases trade diversion.

Answer rating: 100% (QA)

Answer 1 E Removal of barriers to crossborder flow of capital Answer 2 A It ... View the full answer