Which Level of Economic Integration Has No Restrictions on Internal

question 18

Multiple Choice

Which level of economic integration has no restrictions on internal trade and free flow of capital among member nations and lacks only political unity to become a political union?

• A) common market
• B) free trade area
• C) regional cooperation group
• D) customs union
• E) preferential trade agreement

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Definitions:

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them back to the present using a specific discount rate.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Sensitivity Analysis

A technique designed to analyze the effect that varied values of an independent variable exhibit on a particular dependent variable, considering certain presuppositions.

NPV Estimates

Predicted calculations of Net Present Value, which assesses the worth of a project or investment by discounting its future cash flows to their present value.