Which of the following requires nations to give up the least amount of sovereignty?
A) Economic union
B) Common market
C) Free-trade area
D) Political union

Question

Quizplus · Accepted Answer

A free-trade area is an agreement between two or more countries to eliminate tariffs and trade barriers on goods and services. It requires nations to give up the least amount of sovereignty because they only have to agree to eliminate trade barriers, and they can still set their own policies on other matters such as immigration, taxation, and regulation. In contrast, an economic union, common market, or political union would require countries to give up more sovereignty in areas such as fiscal and monetary policy, trade regulations, and political integration.

Which of the Following Requires Nations to Give Up the Least