Some countries in Moonland Union are interested not just in free trade among themselves and a common trade policy against nonmembers,but also in removing all barriers to the movement of labor and capital among themselves.This type of integration is best described as a ________.
A) free trade area
B) preferential trading area
C) customs union
D) common market

Question

Quizplus · Accepted Answer

A common market is a type of economic integration where countries agree to remove all barriers to the movement of labor and capital among themselves in addition to having free trade and a common trade policy against nonmembers. This type of integration goes beyond a free trade area or preferential trading area, and also includes the coordination of economic policies and regulations. A customs union, on the other hand, only involves the removal of tariffs and other trade barriers among member countries, but may still have restrictions on the movement of labor and capital.

Some Countries in Moonland Union Are Interested Not Just in Free