Which is listed as a disadvantage of economic unions?

Which is listed as a disadvantage of economic unions?

• A. Agribusiness replacing family farms
• B. Closing of some industries
• C. Difficulty in agreeing on common economic principles
• D. Concentration of some industries in certain countries

Answer: (B)

Economic unions promote trade by removing barriers, but they also bring competitive pressure across member countries. When some industries are unable to compete with producers in other member nations, they may have to shut down. That industry closure is a direct downside, because it leads to job losses and requires workers and communities to adjust to a new economic landscape. The other options describe different phenomena that aren’t direct, inherent downsides of being in an economic union. Agribusiness replacing family farms can happen for various reasons beyond union membership; negotiating common economic principles is a challenge in forming or running the union rather than a consequence of being in it; and concentration of industries in certain countries reflects specialization and economic structure more than a specific disadvantage of unions.

Economic unions promote trade by removing barriers, but they also bring competitive pressure across member countries. When some industries are unable to compete with producers in other member nations, they may have to shut down. That industry closure is a direct downside, because it leads to job losses and requires workers and communities to adjust to a new economic landscape.

The other options describe different phenomena that aren’t direct, inherent downsides of being in an economic union. Agribusiness replacing family farms can happen for various reasons beyond union membership; negotiating common economic principles is a challenge in forming or running the union rather than a consequence of being in it; and concentration of industries in certain countries reflects specialization and economic structure more than a specific disadvantage of unions.