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28 Cards in this Set
- Front
- Back
Regional Economic Integration
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Agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.
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Free Trade Area
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A group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.
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European Free Trade Association (EFTA)
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A free trade association including Norway, Iceland, Liechtenstein, and Switzerland.
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Customs Union
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A group of countries committed to (1) removing all barriers to the free flow of goods and services between each other and (2) the pursuit of a common external trade policy.
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Common Market
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A group of countries committed to (1) removing all barriers to the free flow of goods, services, and factors of production between each other and (2) the pursuit of a common external trade policy.
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Economic Union
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A group of countries committed to (1) removing all barriers to the free flow of goods, services, and factors of production; (2) the adoption of a common currency; (3) the harmonization of tax rates; and (4) the pursuit of a common external trade policy.
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Political Union
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A central political apparatus that coordinates economic, social, and foreign policy.
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Trade Creation
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Trade created due to regional economic integration; occurs when high-cost domestic producers are replaced by low-cost foreign producers in a free trade area.
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Trade Diversion
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Trade diverted due to regional economic integration; occurs when low-cost foreign suppliers outside a free trade area are replaced by higher cost foreign suppliers in a free trade area.
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European Union
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An economic group of 27 European nations; established as a customs union, it is moving toward economic union; formerly the European Community.
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Treaty of Rome
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The 1957 treaty that established the European Community.
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European Commission
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Body responsible for proposing EU legislation, implementing it, and monitoring compliance.
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European Council
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The ultimate controlling authority within the EU.
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European Parliament
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Elected EU body that consults on issues proposed by the European Commission.
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The Treaty of Lisbon
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Treaty signed in 2007 that made the European Parliament the co-equal legislator for almost all European laws and also created the position of the president of the European Council.
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Court of Justice
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Supreme appeals court for EU law.
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Single European Act
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A 1987 act, adopted by members of the European Community, that committed member countries to establishing an economic union.
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Maastricht Treaty
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Treaty agreed to in 1991, but not ratified until January 1, 1994, that committed the 12 member states of the European Community to adopt a common currency.
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Optimal Currency Area
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One where similarities in the underlying structure of economic activity make it feasible to adopt a single currency.
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North American Free Trade Agreement (NAFTA)
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Free trade area between Canada, Mexico, and the United States.
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Andean Pact
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A 1969 agreement between Bolivia, Chile, Ecuador, Columbia, and Peru to establish a customs union.
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Mercosur
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Pact between Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area.
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Central American Common Market
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A trade pact between Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, which began in the early 1960's but collapsed in 1969 due to war.
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Central America Free Trade Agreement (CAFTA)
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The agreement of the member states of the Central American Common Market Joined by the Dominican Republic to trade freely with the United States.
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CARICOM
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An association of English-speaking Caribbean states that are attempting to establish a customs union.
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Caribbean Single Market and Economy (CSME)
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Unites six CARICOM members in agreeing to lower trade barriers and harmonize macroeconomic and monetary policies.
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Association of Southeast Asian Nations (ASEAN)
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An attempt to establish a free trade area between Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
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Asia-Pacific Economic Cooperation (APEC)
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Made up of 21 member states whose goal is to increase multilateral cooperation in view of the economic rise of the Pacific nations.
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