Which statement best describes economic integration?

Prepare for the Tampa Global Business Test 2. Enhance your business acumen with flashcards, multiple-choice questions, and detailed explanations to ace the exam!

The correct choice is that economic integration involves the unification of economic policies across states. This process typically includes the reduction or elimination of trade barriers between countries, such as tariffs and quotas, which facilitates greater economic cooperation and interaction. By aligning policies, countries aim to create a more efficient market, enhance competition, and promote growth through trade and investment.

In the context of globalization, economic integration can lead to the formation of trade blocs or agreements where member states work together to create favorable trading conditions. This cooperation may involve harmonizing regulations, standards, and policies in various sectors of the economy, thereby fostering a collective economic environment that benefits all participating nations.

The other options focus on concepts contrary to economic integration. Strengthening domestic markets may be a goal of certain policies but does not reflect the intent of economic integration, which seeks to expand beyond domestic confines. Likewise, isolating countries to protect local products and increasing tariffs directly conflict with the principles of economic integration, as these actions serve to create barriers to trade rather than remove them.

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