Which of the following is true of a common market?
A)All barriers to the trade of goods and services among member countries are removed and each country maintains its own policy toward nonmember countries.
B)It involves the free flow of products and factors of production between member countries and adoption of individual external trade policies.
C)It has no barriers to trade between member countries,includes a common external trade policy,and allows factors of production to move freely between members.
D)It eliminates trade barriers between member countries and adopts a common external trade policy and a common currency.

Question

Quizplus · Accepted Answer

A common market involves the elimination of trade barriers between member countries, a common external trade policy, and the free movement of factors of production (e.g. labor, capital) between members. Option A describes a free trade area, while option B describes a customs union. Option D describes an economic union, which also includes a common currency.

Which of the Following Is True of a Common Market