Which of the Following Is NOT a Benefit of Regional

question 4

Multiple Choice

Which of the following is NOT a benefit of regional economic integration?

• A) Promoting peace by fostering closer economic ties
• B) Setting consistent rules to make discriminatory regulations impossible
• C) Allowing free trade to raise incomes and create new jobs
• D) Increasing sovereignty of integrated countries

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Definitions:

Interventionist Trade Theory

A theory suggesting that government intervention in international trade through policies and regulations is necessary to correct market failures and protect domestic industries.

Trade Surplus

Occurs when a country's exports exceed its imports, indicating a positive balance of trade.

Neo-Mercantilism

A trade theory which suggests that trade generates wealth for a country with a trade surplus, with emphasis on rapid economic development.

Positive Balance

A financial situation where assets exceed liabilities, indicating a surplus.