Asked by Madeline Winterton on Jun 27, 2024
Verified
Spain and Italy are both members of the European Union. Nayeli, a Spaniard, is able to purchase Italian-made bags from a handbag store in Spain without paying additional taxes. The market created by the European Union is a(n) _____.
A) monopolistic market
B) oligopolistic market
C) gray market
D) globalized market
Globalized Market
A large market created by combining separate national markets.
European Union
A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure free movement of people, goods, services, and capital.
Additional Taxes
Taxes levied in addition to the basic tax rate on income, property, or goods.
- Familiarize oneself with the idea of globalization and its consequences for markets and production operations.
Verified Answer
ML
Monica LizarragaJul 01, 2024
Final Answer :
D
Explanation :
The European Union (EU) creates a single, large market among its member states, allowing for the free movement of goods, services, capital, and people. This integration facilitates a globalized market environment within the EU, where products like Italian-made bags can be sold in Spain without additional taxes, promoting trade and economic cooperation among member states.
Learning Objectives
- Familiarize oneself with the idea of globalization and its consequences for markets and production operations.