In a theoretically ideal _____________,no discriminatory tariffs,quotas,subsidies,or administrative impediments are allowed to distort trade between member nations.Each country,however,is allowed to determine its own trade policies with regard to non-members.
A) common market
B) economic union
C) political union
D) free trade area
E) customs union

Question

Quizplus · Accepted Answer

A free trade area is the only type of trade agreement among the options listed that allows each member nation to determine its own trade policies with non-members, while eliminating discriminatory tariffs, quotas, subsidies, and administrative impediments between member nations. In a common market or economic union, members not only remove trade barriers but also harmonize economic policies, including monetary and fiscal policies. In a political union, members not only harmonize economic policies but also surrender some degree of sovereignty over political and governance issues. In a customs union, members not only eliminate trade barriers but also apply common external tariffs to non-members.

In a Theoretically Ideal _____________,No Discriminatory Tariffs,quotas,subsidies,or Administrative Impediments Are