Which form of economic integration occurs when participating countries abolish tariffs on trade among themselves,establish a common tariff on imports from nonmembers,and permit free movement of capital and labor within the organization?
A) Free trade area
B) Economic union
C) Common market
D) Monetary union

Question

Quizplus · Accepted Answer

This form of economic integration is referred to as a common market. In a common market, participating countries not only eliminate tariffs on trade among themselves, but also establish a common external tariff on imports from nonmembers. In addition, the member countries permit free movement of factors of production, including labor and capital.

Which Form of Economic Integration Occurs When Participating Countries Abolish