False the european union has a much higher level of

False
The European Union has a much higher level of Economic Integration than does the
U.S.A.
worker layoffs
Regional integration often forces corporate restructuring which may lead to ________.
False

In 1957, six countries -- Belgium, France, Italy, Luxembourg, the Netherlands, and West
Germany formed an alliance called the European Union.
False
The official language of the European Union was originally English, but after Great
Britain left the EU after the BREXIT vote the language reverted to a mix of 23 different
official languages.
global trading system
The WTO (World Trade Organization) espouses (favors) which of the following?
Which of the following is favored by the World Trade Organization?
True
Examples of political unions include Mexico, Switzerland, Canada and Saudi Arabia.
False
The official language of the EU is English
EFTA
The second-largest free trade area in Europe is the ________.
True
The introduction of the euro -the EU's common currency and now one of the world's
leading currencies-meant that the monetary power of national governments within the
EU was taken over by the European Central Bank.
political union
The ________ is considered as the ultimate and the most advanced level of regional
integration.
EU
Which of the following is an example of a common market?
True
Regional integration greatly increases the scale of the marketplace for firms inside the
economic bloc.
False
Firms often internationalize within an economic bloc in order to reduce exposure to
competition.
True
Examples of political unions include Mexico, Switzerland, Canada and Saudi Arabia.
Argentina
Which of the following nations is a member of MERCOSUR?
EU
Which of the following exemplifies an economic bloc?
free trade area
NAFTA is an example of which of the following levels of regional integration?
What will be the long-term effects of currency depreciation to Country X?
High Inflation (Scenario)
Country X primarily exports coffee beans, and in the last two years the demand for
coffee beans has caused economic growth in Country X. To accommodate the economic
growth, the central bank of Country X increased the nation's money supply. Country X is
now experiencing inflation of over 200 percent. A group of economic experts,
government representatives, and business owners have gathered for a conference in
Country X to discuss the situation.

Which of the following should be considered before the government takes any action to
correct the high rate of inflation?
Select one:
False
If an individual buys from a supplier whose currency is depreciating against the
individual's currency, the individual will have to pay a larger amount of his own currency
to complete the purchase.
purchasing products from a nation with appreciating currency
Which of the following is an example of a currency risk?
exchange rates fluctuate with occasional central bank intervention
Which of the following statements is true of a dirty float?