Preferential trade agreement
European Integratıon (ENG) — Ünite 4 Soru-Cevap
European Integratıon (ENG) (ULI355U) soru-cevapları.
What is the first stage (bottom) of the economic integration pyramid that constitutes the basic form of economic integration?
What is the basic aim within a preferential trade agreement?
The basic aim within a preferential trade agreement is to enhance international trade among the participant countries in certain industries.
What is the reason that preferential trade agreements are the most preferred type of economic integration?
Since it does not require common trade accords except for the related industries, preferential trade agreements are the most preferred type of economic integration.
How are the countries that are out of the economic integration referred?
Countries that are out of the economic integration is referred to third countries.
What is the reason of some countries referred as "third countries"?
Because they are out of economic integration.
How can be described the dynamic effects of customs union?
They are the long run effects of the customs union.
How can be described the static effects of customs union?
They emanate at the formation of the customs union. Thus, they represent very short run effects.
When does trade creation occur?
It occurs when traded commodity is shifted from the highest cost domestic producer to the lowest cost customs union member country.
Please explain the term, "Autarky".
Closed economy condition.
Please explain the reasons of dynamic effects of customs union.
Increased competition within the customs union, higher level of technology, economies of scale, induce to foreign direct investments and better allocation of economic resources.
What is the result of the Single European Act of 1986?
Numerous internal barriers and borders were gradually abolished. It means that almost 300 European laws and regulations were adopted by the end of 1992.
What are the levers in the Communication of the European Commission in 2011 referred to as Single Market Act, titled Working Together to Create New Growth?
• access to finance for small and medium
sized enterprises,
• mobility for citizens,
• intellectual property rights,
• consumer empowerment,
• services,
• networks,
• the digital single market,
• social entrepreneurship,
• taxation,
• social cohesion,
• business environment,
• public procurement.
What is the relation of Single European Act with the Treaty of Rome?
It is the first significant amendment of the Treaty of Rome.
Please explain the monetary union theory?
It refers to the adoption of a common currency by the member countries within the economic integration.
Which institution is the common monetary authority to implement standard instruments of monetary policy?
Central bank of monetary union
Who is the most significant contributor to optimum currency area debate who proposed
factor mobility as the strategic ingredient of an optimum currency area?
Mundell
Please explain the initial steps of Monetary Union of the EU that a solution came up with two components.
(1) European Monetary System (EMS) in which all the EU member countries were inherent members,
(2) Exchange Rate Mechanism (ERM) which was optional to participate.
Which are the conditions that are referred as Maastricht Convergence Criteria?
Inflation, longterm nominal interest rate, budget deficit, public debt and EMS membership.
Please explain the inflation condition which is referred as a Maastricht Convergence Criteria.
To be eligible for the membership of the monetary union of the EU, a country’s inflation
rate should not exceed the average of the three lowest inflation rates achieved by the EU member countries by more than 1.5 percentage points.
As of 2019, the monetary union of the EU, How many member states does the Eurozone consist of?
Nineteen member countries