The political and economic environment - Economic environment

3 important questions on The political and economic environment - Economic environment

What states that an identical product must have an identical price in all countries where price is expresses in a common-denominator currency

The law of one price

What are the benefits of regional integration?

Trade creation
Greater consensus
Political cooperation

What are the drawbacks of regional integration?

Trade diversion
Shifts in employment
Loss of national sovereignty 

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