Answered: Explain differences between a Customs…

Business

Economics

Explain differences between a Customs Union and a Free Trade Agreement, i.e EU and NAFTA? Briefly

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter18: Gaining From International Trade

Section: Chapter Questions

Problem 11CQ

See similar textbooks

Related questions

Q: reflect on how international trade models apply to current trade relate issues globally and within…

A: International trade is the transfer of capital, goods, and services across international borders or…

Q: How are trade creation and diversion defined, and what roles do they play in the world gains and…

A: Trade creation It is a term that refers to the generation of business opportunities inside and…

Q: Which country is the United States&#39; largest trading partner in terms of volume of trade?…

A: United States is an open economy which trades with many economies of the economy. It includes many…

Q: Briefly explain the concept 'trade deflection' with the hypothetical example

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer the first…

Q: Namibia import most of its goods, and to encourage local production it can levy a tariff on imports.…

A: Tariffs: These are the indirect taxes that are being imposed by the governments around the world on…

Q: How does the World Trade Organization (WTO) differ from its predecessor General Agreement on Tariffs…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: Case: Moving U.S. White-Collar Jobs Offshore Economists have long argued that free trade produces…

A: White-collar job: White collar work belongs with a class of representatives known for acquiring…

Q: Which feature is found in a customs union but not a free trade area? (Pick either a,b,c, or d) a)…

A: A customs union basically refers to an agreement between two or more nearby nations to minimize…

Q: What factors determine a country’s level of trade? What is the difference between the balance of…

A: A country's balance of trade is an important component of its balance of payments and a key…

Q: 6. Countries have different regulations on what may or may not be imported and which tariff applies…

A: 6. International trade: - it means the buying and selling of goods and services with other…

Q: A free trade union with a common policy regarding tariffs and measures having an equivalent effect…

A: Free trade agreement is an agreement which is signed between the countries to remove the tariffs and…

Q: Define the term Trade agreement?

A: International trade: - it means the buying and selling of goods and services with other countries.

Q: Draw a graph (graph is for your own reference, not required to be attached in the answer sheet) to…

A: Free international trade means that there are no barriers imposed on exporting to or importing from…

Q: ome economist recommends that countries should specialize in trade. What are 3 main disadvantages…

A: Countries should specialize in the trade in which they enjoy an absolute benefit. Whenever countries…

Q: Marcia Anthony, the Trade Minister, argues that the country should not adopt ISI. She asks you to…

A: Country wants to implement import substitution industrialization. It refers that country should…

Q: When one country joins a free trade area with a common external tariff, it causes: a. Trade…

A: When talking about free trade aggreement, it is the contract between two or more countries to allow…

Q: Do you agree or disagree that the trade policies can assume varying dimensions and scope depending…

A: If we consider the trade policies then it is made in order to provide benefits to many economies…

Q: Define trade liberalization.

A: International trade refers to the exchange of goods and services across the national territory.

Q: How was the trade situation between Northern Ireland and Republic of Ireland before the European…

A: The UK-Ireland border has had a special status since the Belfast Agreement/Good Friday Agreement of…

Q: Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade…

A: Trade is defined as the exchange of commodities and services across the boundary of the country.…

Q: What is a reason why government would impose a tariff? Does that not counteract the WTO

A: Imposition of tariff is a part of international trade that is explained below-

Q: Complete the table below for the home country. (A positive number for trade indicates exports, a…

A: Answer -

Q: Compare Hecksher Ohlin Trade Theory and new trade theories in terms of a) basis of trade, b) pattern…

A: Comparison of HO model and new trade theory 1.On the basis of trade We can say that HO model was…

Q: Explain the comparison of the potential and actual effects of government intervention on the free…

A: Necessary actions that are taken by the government which change the decisions made by a person or…

Q: Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is…

A: Trade surplus is an economic measure where exports of a country exceed its imports and is a positive…

Q: what is the impact of trade barriers on globalization

A: Open Trade is important for a country to grow at a higher rate and pace, for enhanced productivity,…

Q: The table below shows the production of oil and lumber of ONE worker in China and India: rice (in…

A: Answer: a. Before the trade, Production is equal to Consumption. It means each country consumes what…

Q: Using the circular flow diagram, show the impact of foreign trade.

A: The socioeconomic sector that includes everything and everyone outside of the native economy's…

Q: Donald Trump's presidency re. 'Make America Great Again' is all about tariff increase, trade…

A: Economic theory is the notion of how the economy should work. In different conditions, different…

Q: Use the graph below to answer the following question: What is the total amount of shoes the US will…

A: Free trade is a trade policy that refers to a policy that does not restrict imports or exports.

Q: What is the difference between a free-trade area and a customs union

A: Meaning of Trade: The term trade refers to the situation under which the products and goods are…

Q: Briefly explain the following statement (10 – 15 lines): “International trading system is biased…

A: International trade is the exchange of capital, goods and services across international borders or…

Q: WHAT IS ADDED TO A CUSTOMS UNION SO THAT AN AREA BECOMES A COMMON MARKET – WHAT IS ADDED TO A…

A: When it comes to economic integration, there are various stages. Each stage has something more than…

Q: Suppose you are watching a news programme on television It's reported that some European politicians…

A: Quotas refer to fixing the maximum amount of any quantity that can be imported in a domestic…

Q: Define WTO. In what ways do you think the WTO is still essential to global trade? Discuss how a…

A: The World Commerce Body (WTO) is an intergovernmental organisation that regulates and supports…

Question

Explain differences between a Customs Union and a Free Trade Agreement, i.e EU and NAFTA? Briefly

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 (Concepts)

VIEW

Step 2 (Answer)

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Explain ‘trade creation’ and ‘trade diversion’ in a customs union. What factors influence the extent of trade creation and trade diversion?
Use a graph to explain how a customs union results in trade creation
WHAT IS ADDED TO A CUSTOMS UNION SO THAT AN AREA BECOMES A COMMON MARKET – WHAT IS ADDED TO A COMMON MARKET SO THAT AN AREA BECOMES A 2. POLITICAL UNION –
A free trade union with a common policy regarding tariffs and measures having an equivalent effect is known as? a. Free trade agreement b. Custom union c. European free trade area d. European union
What distinguishes a customs union from a free trade area? What distinguishes a common market from a customs union?
Moving beyond a Free Trade Area, a Customs Union represents a deeper level of economic integration. In addition to removing internal trade barriers, member countries of a Customs Union adopt a unified external trade policy. This means they agree on common tariffs and trade policies towards non-member countries, creating a unified trade front. This level of integration helps to prevent trade diversion and fosters a more unified economic area. An example of a Customs Union is:A) European UnionB) NAFTA (now USMCA)C) East African Community (EAC)D) ASEAN
Which feature is found in a customs union but not a free trade area? (Pick either a,b,c, or d) a) uniform direct tax rates b) uniform indirect tax rates c) a common external tariff d) a common currency
What are the advantages and disadvantages of free-trade vis a vis regional trade agreements such as custom union or an economic union like the EU and what are the differences? Use diagrams in your answer.
How do you think trade between the United States and a poorer nation affects the workers in the poorer nation?
When one country joins a free trade area with a common external tariff, it causes: a. Trade diversion b. Trade union c. Trade creation d. Trade agreement
Define trade liberalization.
How was the trade situation between Northern Ireland and Republic of Ireland before the European Single Market trade agreement?