In a(n)________,members eliminate internal trade barriers,adopt a common external policy toward nonmembers,and eliminate barriers to the movement of the factors of production.
A) free trade area
B) customs union
C) common market
D) economic union

Question

Quizplus · Accepted Answer

A common market involves member countries eliminating internal trade barriers, adopting a common external policy toward nonmembers, and also eliminating barriers to the movement of the factors of production such as labor, capital, and goods. This goes beyond the requirements of a free trade area (A) or a customs union (B) where there is only a removal of tariffs and quotas on goods traded between members. An economic union (D) goes even further by coordinating fiscal and monetary policies and harmonizing regulations and laws across member states.

In A(n)________,members Eliminate Internal Trade Barriers,adopt a Common External Policy