A free trade area represents the most fully developed form of preferential trade agreement among nations.

Question

Quizplus · Accepted Answer

A free trade area eliminates tariffs and trade barriers among its members, but the most fully developed form of preferential trade agreement is a customs union, which not only eliminates tariffs and trade barriers among its members but also adopts a common external tariff against non-members.

A Free Trade Area Represents the Most Fully Developed Form