An agreement among a group of countries to eliminate trade barriers among themselves,to present a common trading front to the rest of the world in terms of common barriers to trade,and to permit free movement of factors of production among member countries is called a

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A common market involves the elimination of trade barriers among member countries, the presentation of a common trading front to the rest of the world, and the free movement of factors of production among member countries. A confederation involves a political and economic union of sovereign states, while a customs union involves the elimination of trade barriers among member countries and the adoption of a common external trade policy. A free-trade area involves the elimination of trade barriers among member countries, but does not necessarily involve a common external trade policy or the free movement of factors of production. A reciprocity association is not a commonly used term in international trade agreements.

An Agreement Among a Group of Countries to Eliminate Trade