_____ occurs when several countries agree to work together to form a common trade area that enhances trade opportunities.
A)Dumping
B)Market grouping
C)Joint venture
D)Direct foreign investment

Question

_____ occurs when several countries agree to work together to form a common trade area that enhances trade opportunities.
A)​Dumping
B)Market grouping
C)Joint venture
D)​Direct foreign investment

Quizplus · Accepted Answer

Market grouping, also known as regional integration or regional cooperation, is when multiple countries agree to form a common trade area to facilitate trade and enhance economic opportunities for member countries. Examples include the European Union and the North American Free Trade Agreement (NAFTA). Dumping refers to the practice of exporting goods to a foreign market at lower prices than they are sold in the domestic market, often below the cost of production. Joint ventures involve two or more independent companies forming a new entity to pursue a specific business objective. Direct foreign investment is when a company invests in and manages operations in a foreign country. While both joint ventures and direct foreign investment can involve cross-border cooperation, they do not necessarily involve multiple countries forming a common trade area.

_____ Occurs When Several Countries Agree to Work Together to Form