Which of the following is an economic argument for regional integration?

• A. It ensures that all member countries have identical economic policies.
• B. It eliminates all forms of government intervention in the economy.
• C. It allows member countries to benefit from increased trade and specialization.
• D. It guarantees political stability among member nations.

Answer: (C)

Verified step by step guidance

1. Understand the concept of regional integration: it refers to agreements among countries in a geographic region to reduce trade barriers and coordinate economic policies to enhance economic cooperation.
2. Recognize that economic arguments for regional integration typically focus on benefits such as increased trade, specialization, and economic efficiency among member countries.
3. Evaluate each option by comparing it to the core economic benefits of regional integration: identical economic policies and elimination of all government intervention are not necessary or typical outcomes.
4. Note that political stability, while potentially a benefit, is more of a political argument rather than an economic one.
5. Conclude that the economic argument for regional integration is that it allows member countries to benefit from increased trade and specialization, which leads to improved economic welfare.