Question

Linking neighboring economies and making them increasingly dependent on each other creates _______________ for political cooperation between the neighboring states and ___________ the potential for violent conflict. A. catalysts; increases B. catalysts; decreases C. incentives; increases D. incentives; decreases

Answer 1

Answer:

D. Incentives; decreases

Explanation:

Linking neighboring economies and making them increasingly dependent on each other creates incentives for political cooperation between the neighboring states and decreases the potential for violent conflict.

Regional economic integration: It is an agreement between neighboring countries of reducing tariff and non-tariff barriers to increasing flow of goods and services between countries and co-operating each other in economical and political growth. The absence of barriers to the free flow of goods services and factors of production among nations needs to gains from free trade investment.

There are five level of economic integration:

• Free trade area.
• Customs union.
• Common market.
• Economic union.
• Political union.

The given case is the political case for integration.