Which statement describes an advantage of economic unions?

Which statement describes an advantage of economic unions?

• A. More efficient industries
• B. Increased tariffs on goods
• C. Markets become smaller
• D. Less cooperation between member states

Answer: (A)

Economic unions create a larger, borderless market among member countries, letting companies reach more customers and reduce costs. With freer movement of goods, services, capital, and often labor, firms can specialize in what they do best and operate at larger scales. This leads to economies of scale, lower average costs, and more competitive production, making industries more efficient overall. The other statements don’t fit because tariffs between members are not an advantage of unions; in fact, unions typically reduce or eliminate internal barriers. Markets don’t become smaller when countries cooperate; they expand as trade barriers fall. And unions are built on cooperation, not less, so reduced collaboration isn’t accurate.

Economic unions create a larger, borderless market among member countries, letting companies reach more customers and reduce costs. With freer movement of goods, services, capital, and often labor, firms can specialize in what they do best and operate at larger scales. This leads to economies of scale, lower average costs, and more competitive production, making industries more efficient overall.

The other statements don’t fit because tariffs between members are not an advantage of unions; in fact, unions typically reduce or eliminate internal barriers. Markets don’t become smaller when countries cooperate; they expand as trade barriers fall. And unions are built on cooperation, not less, so reduced collaboration isn’t accurate.