Question 1

A country operates with its own independent currency and allows this to float freely. If it were to experience trade deficits with its trading partners then it could, in the short run, allow its currency to depreciate.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following are present in a customs union?

Accepted Answer

A)   A common currency
B)   No internal tariff or non-tariff barriers
C)   A common external tariff
D)   Factor and asset mobility

Question 3

Elaborate on the differences between a customs union, a free trade area, a single market, a monetary union, an economic union, and the EU.

Accepted Answer

Brief description of a customs union, a free trade area, a single market, a monetary union, and an economic union.
EU moving from a customs union to a free trade area-negative to positive integration.
Description of the single market-free movement of goods, people, capital, and services.
Conclude with areas still to be tackled-liberalization of key industries from the transport sector to the services sector.

Question 4

With reference to the three main EU institutions, where does the balance of power lie?

Accepted Answer

A)   The European Commission
B)   The Council of Ministers
C)   The European Parliament
D)   The European Parliament and the European Commission

Question 5

In what way would a country's entry to the eurozone (i.e. adoption of the euro as its currency)  benefit that country's firms?

Accepted Answer

A)   It reduces the uncertainties of exchange rate fluctuations
B)   It reduces taxes paid to the Queen
C)   It helps 'disguise' the short-term loss in competitiveness
D)   Incomes are distributed equally across all people

Question 6

Explain the different approaches to building the European Union and their impact on member states.

Accepted Answer

A Federal Europe is the concept that muc...

Question 7

Critically discuss the pros and cons of the 2009 Treaty of Lisbon.

Accepted Answer

Some positives include: greater clarity;...

Question 8

Explain why EU decision-making can be a complex process.

Accepted Answer

Describe the Europe Union's historical d...

Question 9

Briefly describe the principal EU institutions and how EU decision-making works.

Accepted Answer

Description of the competencies and role...

Question 10

'Trade diversion' in the European Union could be defined as:

Accepted Answer

A)   Encouraging efficient free trade between Spain and the UK
B)   The monetary costs of that activity
C)   Trade created by the formation of a customs union
D)   Trade diverted from a more efficient exporter to a less efficient one through the formation of a free trade agreement D

Exam 13: Creating Effective Trading Blocs: What Lessons Does the European Union Provide

A country operates with its own independent currency and allows this to float freely. If it were to experience trade deficits with its trading partners then it could, in the short run, allow its currency to depreciate.

Correct Answer
verified
False

Which of the following are present in a customs union?

Correct Answer
verified

Elaborate on the differences between a customs union, a free trade area, a single market, a monetary union, an economic union, and the EU.

With reference to the three main EU institutions, where does the balance of power lie?

Correct Answer
verified

In what way would a country's entry to the eurozone (i.e. adoption of the euro as its currency) benefit that country's firms?

Correct Answer
verified

Explain the different approaches to building the European Union and their impact on member states.

Correct Answer
verified
A Federal Europe is the concept that muc...
View Answer

Critically discuss the pros and cons of the 2009 Treaty of Lisbon.

Correct Answer
verified
Some positives include: greater clarity;...
View Answer

Explain why EU decision-making can be a complex process.

Correct Answer
verified
Describe the Europe Union's historical d...
View Answer

Briefly describe the principal EU institutions and how EU decision-making works.

Correct Answer
verified
Description of the competencies and role...
View Answer

'Trade diversion' in the European Union could be defined as:

Correct Answer
verified
D

Exam 13: Creating Effective Trading Blocs: What Lessons Does the European Union Provide

A country operates with its own independent currency and allows this to float freely. If it were to experience trade deficits with its trading partners then it could, in the short run, allow its currency to depreciate.

Correct AnswerverifiedFalse

Which of the following are present in a customs union?

Correct AnswerverifiedShow Answer

Elaborate on the differences between a customs union, a free trade area, a single market, a monetary union, an economic union, and the EU.

With reference to the three main EU institutions, where does the balance of power lie?

Correct AnswerverifiedShow Answer

In what way would a country's entry to the eurozone (i.e. adoption of the euro as its currency) benefit that country's firms?

Correct AnswerverifiedShow Answer

Explain the different approaches to building the European Union and their impact on member states.

Correct AnswerverifiedA Federal Europe is the concept that muc...View AnswerShow Answer

Critically discuss the pros and cons of the 2009 Treaty of Lisbon.

Correct AnswerverifiedSome positives include: greater clarity;...View AnswerShow Answer

Explain why EU decision-making can be a complex process.

Correct AnswerverifiedDescribe the Europe Union's historical d...View AnswerShow Answer

Briefly describe the principal EU institutions and how EU decision-making works.

Correct AnswerverifiedDescription of the competencies and role...View AnswerShow Answer

'Trade diversion' in the European Union could be defined as:

Correct AnswerverifiedD

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A Federal Europe is the concept that muc...
View Answer

Correct Answer
verified
Some positives include: greater clarity;...
View Answer

Correct Answer
verified
Describe the Europe Union's historical d...
View Answer

Correct Answer
verified
Description of the competencies and role...
View Answer

Correct Answer
verified
D