What Is Potentially an Important Argument Against Regional Trade Agreements

question 36

Multiple Choice

What is potentially an important argument against regional trade agreements?

• A)The benefits of trade creation may be outweighed by the costs of trade diversion.
• B)They are more difficult to negotiate than multilateral agreements at the WTO.
• C)The gains from trade can only be realized with global trade agreements.
• D)Regional trade agreements lead to more volatile swings in national income.
• E)Regional trade agreements are not legally enforceable.

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Definitions:

Personal Fable

A belief held by adolescents that they are special and unique, leading to the notion that others cannot understand them and they are invulnerable to harm.

Imaginary Audience

A psychological construct explaining how adolescents often feel that their behavior is the main focus of others' attention, leading to heightened self-consciousness.

Egocentrism

The inability to differentiate between self and others, leading to viewing everything solely from one's own perspective.

Preconventional Morality

The first level of Kohlberg's theory of moral development, where moral understanding is based on rewards, punishment, and personal self-interest.