Scenario: Moonland Union
Twenty-six nations,A through Z countries of Moonland region,have decided to cooperate with one another to eliminate trade barriers among them and create Moonland Union.They are not sure,however,to what extent they want to cooperate.
-As a first stage of cooperation,the countries agree to remove all barriers to trade among themselves.Each country determines its own barriers against non-members.At this stage,Moonland Union can be described as a ________.
A)free trade area
B)political union
C)common market
D)customs union

Question

Quizplus · Accepted Answer

At the first stage of cooperation, the countries agreed to remove all barriers to trade among themselves, but have not yet established a common external tariff or coordinated their trade policies, which are characteristics of customs union and common market respectively. Therefore, the best choice is a free trade area.

Scenario: Moonland Union Twenty-Six Nations,A Through Z Countries of Moonland Region,have Decided to Region,have