Which of the Following Describes One of the Reasons for the Establishment

question 143

Multiple Choice

Which of the following describes one of the reasons for the establishment of the European Union?

• A) It eliminates trade barriers between member countries.
• B) It decreases tariffs on products from nonmember countries.
• C) It enhances movement of capital and labor between nonmember nations.
• D) It increases the usage of member labor pools by nonmembers.
• E) It gradually eliminates imports from nonmember nations.

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Definitions:

Open Economy

An economy that engages in international exchange of goods, services, and capital by allowing cross-border trade and investment.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period, used as an indicator of economic health.

NX

Represents net exports, which is the value of a country's total exports minus its total imports and is a component of a country's gross domestic product (GDP).

Trade Surplus

Trade Surplus occurs when the value of a country's exports exceeds the value of its imports.