Members of a free-trade area generally allow unrestricted movements of labor and capital among member countries.

Question

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In a free-trade area, countries agree to eliminate tariffs and trade barriers on products traded among them, but they do not necessarily allow for the unrestricted movement of labor and capital. The free movement of labor and capital is more characteristic of deeper forms of integration, such as common markets or economic unions.

Members of a Free-Trade Area Generally Allow Unrestricted Movements of Labor