Which of the following is an argument against economic integration?
a.It benefits only certain minority groups, not the nation as a whole.
b.It results in forced political integration among the member countries.
c.It reduces the degree of control over certain issues such as monetary and fiscal policy.
d.It never leads to specialization of production of goods and services.
e.It requires a large number of countries in the arrangement to make it economically viable.
Correct answer is option c i.e It reduces the degree of control over certain issues such as monetary and fiscal pilicy.
In an economic intergration the participant countries enter into an agreement to remove the tarrif and non-tarrif barriers in order to facilitate free flow of goods and services among themselves.This leads for the countries to sacrifice certain control over their monetary and fiscal policy and trade policy in order to make the economic integration fruitful.
Option a is not correct because economic integration benefits the nation as a whole but certain minority groups lose from the economic integration.
Option b is not correct becuase there is no forced political integration between member countries.Because the political integration among countries through economic integration leads to reduced potential for political violance and conflict among the countries.So the political integration is beneficial for the member countries.
Option d is not correct because economic integration facilitates free flow of goods and services among the member countries and this lead to specialization of goods and services for the countries in which they are efficient
Option e is not correct as the small is the number of countries in the arrangement the more economically viable is the integration.Because with less members it is easier to coordinate and harmonize the policies with lesser prospectives to reconcile.Thus it is easier to reach an agreement
Which of the following is an argument against economic integration? a.It benefits only certain minority groups,...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...