The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies with third countries is known as a(n):
A)economic union.
B)customs union.
C)free trade area.
D)common market.
E)none of the above

Question

Quizplus · Accepted Answer

A free trade area represents a group of countries that have agreed to eliminate tariffs, quotas, and preferences on most (if not all) goods between them. However, unlike a customs union, countries in a free trade area do not have a common external tariff on goods imported from non-member countries, meaning each country operates its own trade policies with countries outside the area.

The Form of Economic Cooperation That Calls for Countries to Eliminate