Which of the following is the order of progression of economic integration?
A)free trade area,customs union,common market,economic union
B)free trade area,common market,customs union,economic union
C)free trade area,customs union,economic union,common market
D)free trade area,customs union,monetary union,economic union

Question

Quizplus · Accepted Answer

This is the correct order of economic integration. A free trade area eliminates tariffs among member countries, a customs union adds a common external tariff, a common market allows for free movement of goods, services, and factors of production, and an economic union involves coordination of economic policies and possibly a common currency. Option B has the correct first two stages but swaps the order of the third and fourth stages. Option C swaps the order of the third and fourth stages and option D introduces a monetary union before an economic union.

Which of the Following Is the Order of Progression of Economic