A common market
A) allows the imposition of common external trade barriers against nonmembers.
B) represents less economic integration than a free trade area.
C) does not permit free movement of goods among member nations.
D) does not allow free movement of factors of production among nations.

Question

Quizplus · Accepted Answer

A common market allows for common external trade barriers against nonmembers. This is because member countries have agreed to coordinate their trade policies with nonmembers in order to ensure fair competition within the common market. A free trade area, on the other hand, does not allow for common external trade barriers.

A Common Market