The least amount of sovereignty that must be surrendered to a trading bloc occurs in a ________.
A) economic union
B) common market
C) free trade area
D) political union

Question

Quizplus · Accepted Answer

In a free trade area, member countries eliminate tariffs and other trade barriers among themselves, but each country maintains its own sovereignty over trade policies outside of the agreement. Therefore, the least amount of sovereignty is surrendered in a free trade area compared to other forms of economic integration such as a common market or economic union, where members must agree to common policies and regulations. A political union involves the highest level of integration, where member countries merge their sovereignty to create a single sovereign entity.

The Least Amount of Sovereignty That Must Be Surrendered to a Trading