A(n)_____ involves the free flow of products and factors of production between member countries and the adoption of a common external trade policy,along with a common currency,harmonization of members' tax rates,and a common monetary and fiscal policy.
A)free trade area
B)economic union
C)common market
D)customs union

Question

Quizplus · Accepted Answer

An economic union involves not only the free flow of goods and services like a free trade area or common market, but it also includes a common external trade policy, a common currency, fiscal and monetary policies, and harmonization of members' tax rates. A customs union, on the other hand, only involves the free flow of goods and services but not necessarily factors of production or other policies.

A(n)_____ Involves the Free Flow of Products and Factors of Production