Which of the following represents the highest form of economic integration?
A)Customs union
B)Common market
C)Economic union
D)Preferential trade arrangements

Question

Quizplus · Accepted Answer

Economic union is the highest form of economic integration as it involves not only the elimination of tariff and non-tariff barriers to trade but also the harmonization of economic policies across member countries. This includes a common currency, a common market, and a common trade policy. Examples of economic unions include the European Union and the East African Community. Customs union (A) involves the elimination of tariff barriers but not non-tariff barriers, common market (B) involves the elimination of both tariff and non-tariff barriers but not necessarily the harmonization of economic policies, and preferential trade arrangements (D) provide preferential treatment to certain products from member countries but do not involve the elimination of all trade barriers.

Which of the Following Represents the Highest Form of Economic