Paper 2 · Economic groupings/integration
Which of the following is a benefit to a country of joining a regional economic grouping?
AMember countries lose the right to trade with any country outside the grouping
BReduced tariffs between member states increase trade and widen the variety of goods available
CAll member countries must adopt a single common currency as soon as they join
DCompetition among firms operating within the region falls sharply once trade barriers are removed
Explanation: Economic groupings typically lower tariffs and other trade barriers between member states, which increases trade, gives consumers access to a wider variety of goods, and raises competition (which improves quality), rather than reducing it. Joining a grouping does not cut off trade with non-members, and a common currency is not a requirement of every economic grouping.
Derived from ZIMSEC Business_studies Paper 2, November 2019, Q3
