A free trade area _____.
A) imposes common external policies on nonparticipants in order to combat trade diversion
B) permits the free movement of goods and people among member nations
C) comprises a group of countries that remove trade barriers among themselves
D) coordinates and harmonizes economic policies in order to blend their economies into a single economic entity

Question

A free trade area _____.
A) imposes common external policies on nonparticipants in order to combat trade diversion 
B) permits the free movement of goods and people among member nations 
C) comprises a group of countries that remove trade barriers among themselves 
D) coordinates and harmonizes economic policies in order to blend their economies into a single economic entity

Quizplus · Accepted Answer

A free trade area refers to a group of countries that agree to remove trade barriers, such as tariffs and quotas, among themselves. However, each country maintains its own trade policies with non-member countries.

A Free Trade Area _____