What is a defining characteristic of a free trade area?
A) Factors of production are allowed to move freely between member nations.
B) Each member country is allowed to determine its own trade policies with regard to nonmembers.
C) Member nations are required to have a common currency.
D) Member nations are required to have a common monetary and fiscal policy.
E) Member nations are required to have a central political apparatus that coordinates economic, social, and foreign policy.

Question

Quizplus · Accepted Answer

In a free trade area, member countries eliminate tariffs and trade barriers among themselves but retain the freedom to set their own trade policies with non-member countries.

What Is a Defining Characteristic of a Free Trade Area