Which of the following is true of regional economic integration?
A) Regional economic integration is good for producers because they do not have to adapt to a more competitive environment.
B) By creating a single market, the EU aimed to lower the price for goods and services across the bloc.
C) Regional economic integration poses a challenge for consumers as it increases the prices of goods.
D) The members of the World Trade Organization have refused to participate in any regional trade agreements.
E) Agreements designed to promote freer trade within regions have failed to produce gains from trade for all member countries.

Question

Quizplus · Accepted Answer

The creation of a single market is one of the main objectives of regional economic integration, with the aim of lowering the price for goods and services across the bloc. This benefits both producers and consumers as it increases competition, leading to greater efficiency and lower prices. Option A is not true because regional economic integration promotes a more competitive environment, not less. Option C is also incorrect because regional economic integration generally leads to lower prices due to increased competition. Option D is false as many members of the WTO participate in regional trade agreements as well. Option E is also not true because regional trade agreements can produce gains from trade for member countries, although the distribution of these gains may not always be equal.

Which of the Following Is True of Regional Economic Integration