If seven countries formed a common market,which of the following would be a feature of their trade agreement?
A)absence of a common external trade policy with regard to nonmembers
B)free movement of factors of production between member nations
C)establishment of barriers to the free flow of goods between member nations
D)lack of administrative machinery to oversee trade relations with nonmembers
E)mandatory use of a common currency among member nations

Question

Quizplus · Accepted Answer

The feature of free movement of factors of production (such as labor and capital) is a common feature in trade agreements among member nations in a common market. Option A is incorrect because a common external trade policy is usually established among member nations in order to negotiate better trade deals with nonmembers. Option C is incorrect because the whole purpose of a common market is to eliminate barriers to the free flow of goods and services within member nations. Option D is incorrect because a common market usually has an administrative body to oversee trade relations with nonmembers. Option E is incorrect because the common currency is usually not mandatory in a common market.

If Seven Countries Formed a Common Market,which of the Following