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> Question 1 1 In a free trade area we can theoretically expect to find government subsidies to favor domestic businesses, but no quotas or

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> Question 1 1 In a free trade area we can theoretically expect to find government subsidies to favor domestic businesses, but no quotas or tariffs graduated tariffs and quotas depending on the rate of inflation and other economic variables only a few tariffs, quotas and subsidies, but a substantial number of administrative barriers may still exist no tariffs, quotas, subsidies, or administrative barriers to trade Question 5 Problems with regional integration include all of the following EXCEPT concern that supply chains will be disrupted concern over job loss when more low cost labor comes in competition concerns that fiscal or monetary policy of a member country will be strained worries that the national governments lose control over their own affairs Question 6 One big problem with the euro is it is not widely accepted as a legitimate currency in many areas of the world the coins are so heavy O it fluctuates widely in relation to the Japanese yen O national authorities have lost control over monetary policy

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