Arrange the following in order from lowest to highest level of economic integration.
A)customs union→economic union→free trade area→common market
B)economic union→customs union→common market→free trade area
C)common market→free trade area→economic union→customs union
D)free trade area→customs union→common market→economic union
E)common market→economic union→customs union→free trade area

Question

Quizplus · Accepted Answer

The correct order from lowest to highest level of economic integration is free trade area, customs union, common market, and economic union. This means countries start by removing tariffs and trade barriers in a free trade area, then agree to a common external tariff in a customs union, then remove restrictions on the mobility of factors of production (such as labor and capital) in a common market, and finally, coordinate economic policies in an economic union. Choice D is the only option that has the correct order.

Arrange the Following in Order from Lowest to Highest Level