Question

Economic integration is a process of eliminating restrictions on international trade, payments, and factor mobility. Economic integration results in the uniting of two or more national economies in a regional trading arrangement.

A) True
B) False

Answer 1

True

Step-by-step explanation:

Economic integration refers to an agreement between countries to eliminate trade barriers and coordinate their monetary policies. The integration allows to reduce trade costs, more employment opportunities as there is mobility and market expansion. Usually, this is considered a regional trading arrangement as it tends to be between neighboring countries. An example of a economic integration is the European Union. According to this, the statement is true.