Question

Regional Economic Integration Threats (textbook) The lowering of barriers to trade and investment among countries has led to increased price competition throughout the EU. True or False

Answer 1

Answer:

TRUE

Explanation:

Nations tend to market goods and services to meet consumer needs. However, most nations impose fees and limits on the entry of products from other countries into the national territory, to reduce competition and stimulate the national industry. When a free trade agreement is signed, as occurred in the European Union, these restrictions cease to exist. In this way, products move freely between countries, stimulating competition and lowering prices. Thus, the most efficient firms have remained in the market and consumers will be better off as they can buy the products at the lowest possible price.