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Direction: Supply the missing words/phrases.

1. C. Regional economic integration is a process in which two or more countries agree to eliminate economic barriers,
with the end goal of enhancing 2. E. Productivity and achieving greater 3. G. economic interdependence. Asia’s
integration is basically market driven (4. D. influenced by policies), multispeed (5. A. different levels of integration)
and multitracked (6. B. varies across sectors). One important characteristic of Asian integration is the rise of 7. H.
regional production networks and 8. I growing trade in intermediate goods. It is also perceived as generating
significant 9. J. macroeconomic benefits to the 10. F. productivity through its links to trade, investment, and economic

A. different levels of integration

B. varies across sectors
C. Regional economic integration
D. influenced by policies
E. Productivity
F. domestic economy
G. economic interdependence
H. regional production networks
I. growing trade in intermediate goods
J. macroeconomic

True 1. The process of regional economic integration can have significant effects on human development.

True 2. ‘Human development’ refers to enlarging people’s freedoms to live lives they value.

False 3. The decision to regionalize economic activity through an integration process will naturally have no significant
consequences for economic activity at the community and household levels, particularly for employment.

True 4. Employment, whether in the formal or informal sectors, is the major determinant of household income and a key
driver in strengthening capabilities and accessing opportunities to expand human development.

False 5. Economic integration will have no impacts on other areas that affect the potential for human development.

True 6. While higher income does not necessarily equate with human development, it remains an important medium
through which countries and individuals can expand their capabilities and opportunities.
True 7. For human development, the quality of employment is as important as the quantity of employment.

True 8. Integration may lead individuals to adapt their skill sets to take advantage of labour market opportunities.

True 9. Expanded economic opportunities for women can empower women and contribute intrinsically to human
development, and have multiplier effects across other aspects of human development, including nutrition and access to
health and education.

True 10. There is a growing recognition that economic activity and advances in human development should take place
within the limits imposed by the natural environment.