Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated?
A)Economic union,common market,customs union,free trade area,and full political union.
B)Common market,economic union,full political union,free trade area,and customs union.
C)Free trade area,customs union,common market,economic union,and full political union.
D)Full political union,free trade area,common market,customs union,and economic union.

Question

Quizplus · Accepted Answer

This selection accurately depicts the levels of economic integration from least integrated to most integrated. A free trade area involves the elimination of tariffs and quotas on trade between countries, but each country maintains its own trade policies with non-members. A customs union extends the elimination of tariffs and quotas to internal trade between members, but establishes a common external trade policy with non-members. A common market involves the free movement of goods, services, capital, and people between members, in addition to a common external trade policy. An economic union involves further economic integration, such as a single currency, harmonized fiscal policies, and common monetary policy. Finally, full political union involves the complete integration of member states into a single political entity, with a common government and constitution. Therefore, the correct order of levels of economic integration is: free trade area, customs union, common market, economic union, and full political union.

Which of the Following Selections Accurately Depicts the Levels of Economic