Which form of economic integration is closer to the degree of economic integration characteristic of a country?

Question

Quizplus · Accepted Answer

An economic union represents a deep form of economic integration which involves the coordination of economic and fiscal policies, and possibly even a common currency, alongside the free movement of goods, services, capital, and labor. This level of integration is similar to the internal economic integration of a single country, where different regions or states operate under a unified economic policy framework. The European Union (EU) is an example of an economic union, particularly among the countries that have adopted the euro as their common currency.
To clarify, here are brief descriptions of the other options:
a. Free-trade agreement - This is a pact between two or more nations to reduce barriers to imports and exports among them. While it allows for the easier exchange of goods, it does not integrate economies to the extent of an economic union.
b. Customs union - This goes a step further than a free-trade agreement by not only allowing for free trade between member countries but also adopting a common external tariff on imports from non-member countries. It still lacks the deeper integration of fiscal and economic policies found in an economic union.
c. Common market - A common market provides for the free movement of goods, services, capital, and labor. It is more integrated than a customs union but does not necessarily include the coordination of broader economic and fiscal policies that an economic union does.
e. NAFTA - The North American Free Trade Agreement (now replaced by the United States-Mexico-Canada Agreement, USMCA) was a free-trade agreement between the United States, Canada, and Mexico. It aimed to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace. It was not an economic union.

Which Form of Economic Integration Is Closer to the Degree