Deb’s Auto Alarms has sold car alarms in the United States for 15 years. Owner Deborah Lefkowitz has read about the opportunities that globalization presents for businesses, and she is thinking about seeking entry to several international markets. She asks you for advice: "I’ve heard about free trade agreements among different groups of countries: World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), the European Union (EU), the Association of Southeast Asian Nations (ASEAN), Mercosur in Latin America, the African Free Trade Zone (AFTZ) . . . In general, it seems as though these agreements have had positive effects on economic growth, but they have also been controversial in some ways. What can you tell me about them?"

Based on your knowledge of international trade organizations, answer the following question.

Which of the following statements correctly describes the European Union (EU)? Check all that apply.

a. All EU member states have similar levels of debt and experience similar rates of unemployment.
b. The EU introduced the euro, a common currency that facilitates travel, trade, and investment.
c. The global financial crisis of 2008 threatened the EU by exposing differences in the economic strength of its member states.
d. Breaking down trade barriers within Europe has reduced economies of scale, making European companies less competitive.