Business, 04.12.2020 14:20 jaredsmailandst

When a country is a member to this level of economic integration, the countries involved have a common currency and similar tax rates. Which type of economic integration does this demonstrate? Common market

Custom union

Free trade

Economic union

Answers: 2

Show answers

Answers

Answer from: bailey814

Explanation:

Levels of Economic Integration

Economic integration can be classified into five additive levels, each present in the global landscape:

Free trade. Tariffs (a tax imposed on imported goods) between member countries are significantly reduced, some abolished altogether. Each member country keeps its own tariffs regarding third countries. The general goal of free trade agreements is to develop economies of scale and comparative advantages, promoting economic efficiency.

Custom union. Sets common external tariffs among member countries, implying that the same tariffs are applied to third countries; a common trade regime is achieved. Custom unions are particularly useful to level the competitive playing field and address the problem of re-exports (using preferential tariffs in one country to enter another country).

Common market. Services and capital are free to move within member countries, expanding scale economies and comparative advantages. However, each national market has its own regulations, such as product standards.

Economic union (single market). All tariffs are removed for trade between member countries, creating a uniform (single) market. There are also free movements of labor, enabling workers in a member country to move and work in another member country. Monetary and fiscal policies between member countries are harmonized, which implies a level of political integration. A further step concerns a monetary union where a common currency is used, such as with the European Union (Euro).

Political union. Represents the potentially most advanced form of integration with a common government and were the sovereignty of a member country is significantly reduced. Only found within nation-states, such as federations where there are a central government and regions (provinces, states, etc.) having a level of autonomy.

As the level of economic integration increases, so does the complexity of its regulations. This involves a set of numerous regulations, enforcement, and arbitration mechanisms to ensure that importers and exporters are in compliance. The complexity comes at a cost that may undermine the competitiveness of the areas under economic integration since it allows for less flexibility for national policies. The devolution of economic integration could occur if the complexity and restrictions it creates, including the loss of sovereignty, are no longer judged to be acceptable by its members.

Another question on Business

Business, 21.06.2019 19:30

The revenues of a company increased by 39% in year one and decreased 22% in year two. what is the overall change over the two-year period?

Answers: 1

Answer

Business, 22.06.2019 02:00

What is the main role of ctsos at the local level? at the local level, the main role of ctsos is to encourage students to become urge them to programs and competitive events.1. a.internsb.traineesc.members2.a.participateb.trainc.win

Answers: 3

Answer

Business, 22.06.2019 04:50

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Answers: 2

Answer

Business, 22.06.2019 08:30

Acompany recorded a check in its accounting records as $87. however, the check was actually written for $78 and it cleared the bank as $78. what adjustment is needed to the personal statement? a. decrease by $9 b. increase by $9 c. decrease by $18 d. increase by $9

Answers: 2

Answer

You know the right answer?

When a country is a member to this level of economic integration, the countries involved have a comm...

Questions