From least integrated to most integrated, the levels of economic integration are:
A) a common market, a free trade area, an economic union, a customs union, and a political union.
B) a free trade area, a customs union, a common market, an economic union, and a political union.
C) a customs union, a free trade area, a common market, a political union, and an economic union.
D) a common market, an economic union, a customs union, a free trade area, and a political union.

Question

Quizplus · Accepted Answer

This is the correct sequence of economic integration from least to most integrated. A free trade area involves the removal of tariff barriers between member countries but each country retains its own trade policies with non-member countries. In a customs union, member countries not only remove tariff barriers between themselves but also establish a common external trade policy with non-member countries. A common market goes a step further by allowing the free movement of not just goods but also services, capital, and labor within the member countries. An economic union involves the coordination of macroeconomic policies between member countries to ensure greater economic harmonization. Finally, a political union involves the creation of a supranational authority with decision-making powers over member countries in various areas including economic policies.

From Least Integrated to Most Integrated, the Levels of Economic