Scenario: Moonland Union
Twenty-six nations, A through Z countries of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create Moonland Union. They are not sure, however, to what extent they want to cooperate.
-Some countries in Moonland Union are interested in free trade, the free movement of capital and labor, and creating a common trade policy against nonmembers. This type of integration is best described as a(n) ________.
A) free-trade area
B) economic union
C) customs union
D) common market

Question

Quizplus · Accepted Answer

A common market involves not only free trade and free movement of capital and labor but also a common trade policy against nonmembers. Therefore, this is the best description for the Moonland Union's integration aspirations. The other options, such as a free-trade area, customs union, or economic union, do not entail a common trade policy against nonmembers.

Scenario: Moonland Union Twenty-Six Nations, a Through Z Countries of Moonland Region, Have