Economic integration whereby countries remove barriers to trade and the movement of labor and capital, erect a common trade policy against nonmembers, and coordinate their economic policies is called a(n) ________.

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An economic union involves the integration of economic policies, removal of barriers to trade and movement of labor and capital, and coordination of a common trade policy against nonmembers. This is the highest level of economic integration and involves not only free trade but also shared fiscal, monetary, and social policies. The other options, customs union, common market, and free-trade area, involve varying degrees of trade liberalization and cooperation but do not necessarily involve coordination of economic policies.

Economic Integration Whereby Countries Remove Barriers to Trade and the Movement