Regarding stages of economic integration, a free trade area
A) goes beyond a customs union by including a common external tariff.
B) falls short of a customs union by excluding a common external tariff.
C) goes beyond a common market by including a common transportation policy.
D) goes beyond a common market by including a common agricultural policy.

Question

Quizplus · Accepted Answer

In a free trade area, member countries eliminate tariffs and other trade barriers among themselves, but each member maintains its own external tariffs and trade policies with non-member countries. Therefore, it falls short of a customs union, which includes a common external tariff.

Regarding Stages of Economic Integration, a Free Trade Area