Chapter 8: Problem 30

Which statement is true about the European Union? (L.O7) a) It has not taken in any new member nations since its formation. b) All of its members must use the euro as its official currency. c) It is essentially a free trade area. d) It has been basically a failure.

Short Answer

Expert verified

Statement C is true, as the European Union is essentially a free trade area, facilitating trade and economic collaboration among its member nations through a customs union, single market, and common trade policy.

Step by step solution

Analyze statement A

Statement A states that the European Union has never taken in any new member nations since its formation. This statement is false, as the European Union has expanded over the past decades to include new countries in its membership.

Analyze statement B

Statement B states that all of the EU members must use the euro as their official currency. This statement is also false, as not all member countries use the euro as their official currency. Some nations, like the United Kingdom when it was a member, and Sweden, have chosen to maintain their own national currencies.

Analyze statement C

Statement C asserts that the European Union is essentially a free trade area. This statement is true, as one of the primary purposes of the European Union is to facilitate trade and economic collaboration among its member nations. The European Union has established a customs union, single market, and common trade policy among its members, which facilitates free trade within the area.

Analyze statement D

Statement D describes the European Union as a failure. This statement is subjective and depends on the opinion of the person answering the question. However, given the context of the question and other options, this statement should not be considered the true fact regarding the EU.

Identify the correct statement

Based on our analysis in steps 1-4, we can now conclude that statement C is the true statement. The European Union is essentially a free trade area, and while not without its challenges, it has achieved significant economic cooperation and integration among its member nations.