The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-In a free trade area, member nations have no trade barriers among themselves, but are free to set their own trade policies toward nonmembers.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-In a free trade area, member nations have no trade barriers among themselves, but are free to set their own trade policies toward nonmembers.

Quizplus · Accepted Answer

This is the definition of a free trade area. Member nations have no barriers to trade among themselves, but they can set their own policies toward nonmembers.

The Figure Below Shows the Demand (D) and Supply (S)