Why have so many regional trade arrangements among developing countries failed? Why might MERCOSUR have a better chance for success than the East African Common Market?
What will be an ideal response?
Early attempts at regional trade arrangements such as the East African Common Market have failed because markets have been small and countries had similar economies, limiting the gains to be had from comparative advantage. MERCOSUR has been created at a time when the countries involved have large, more diversified markets.
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Which of the following statements is true?
A) If the domestic price of a good in a country is lower than the world price, the country will become an exporter of the good. B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good. C) If the domestic price of a good in a country is lower than the world price, the country will become an importer of the good. D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
Discuss the problems that the EMU will continue to experience in the coming years
What will be an ideal response?