Question

1. Institutions are

the same thing as organizations.

associations of individuals or groups.

always embodied in a written set of rules

a set of rules governing behavior, whether written or not.

only relevant on international issues.

2. A free trade agreement plus a common set of tariffs toward non-members is called

a common market

a customs union

a free trade area

an economic union

a partial trade agreement

3. Which of the following is FALSE?

A common market is more deeply integrated than an economic union.

NAFTA is an example of a free trade area.

The European Union is a deeper form of integration than NAFTA.

Common markets allow for labor mobility between participating nations.

Answer 1

1. Option D a set of rules governing behavior, whether written or not.

Institutions are based on the formal and informal rules that organise social, political and economic relations.

2.Option B Custom Union

A customs union is an agreement between two or more neighboring countries to remove trade barriers, reduce or abolish customs duty. Tariffs are a common element in international trading. The primary goals of imposing, and eliminate quotas.

3.Option A i.e. A common market is more deeply integrated than an economic union.

An economic union is one of the different types of trade blocs. It refers to an agreement between countries that allows products, services, and workers to cross borders freely. The union requires the integration of monetary and fiscal policies, so that member countries coordinate policies, taxation, and government spending related to the agreement.An economic union is the last step in the process of economic integration, after free trade area, customs union, and common market.A common market is a free trade area with relatively free movement of capital and services.