Which of the Following Explains Why Economic Integration Has Never

question 30

Multiple Choice

Which of the following explains why economic integration has never been easy to achieve or sustain, despite the strong economic and political arguments in support?

• A) No country has shown significant improvement because of economic integration.
• B) Countries fear a reduction of their political weight in the world because of economic integration.
• C) Linking neighboring economies and making them increasingly dependent on each other creates little incentive for political cooperation.
• D) While a nation as a whole may benefit significantly, certain groups may lose.

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Definitions:

Straight Line Amortization

A method of systematically reducing the carrying amount of an intangible asset over its useful life in equal installments.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies, by recording such investments at cost and periodically adjusting to reflect the share in profits or losses.

Impairment Loss

A financial accounting concept that represents the reduction in the recoverable amount of an asset below its carrying amount.

Ownership Interest

The proportion of shares or rights in a company held by an investor, indicating the level of control and financial stake.