Scenario: Learning the Americas' Way
The newly-formed countries that emerged after the break up of the United Frontier States (UFS) are interested in learning more about integration in the Americas. Because the former UFS nations have many similarities with the countries of North and South America, they believe they can learn from the integration experience in the Americas. To that end, they pose the following questions.
-The North American Free Trade Agreement is best considered a ________.
A) free-trade area
B) customs union
C) common market
D) political union

Question

Quizplus · Accepted Answer

The North American Free Trade Agreement (NAFTA) is a free-trade area, which means there is no common external tariff and each member country is free to maintain its own external tariffs on imports from non-member countries. While there are some common regulations regarding trade among the member countries, there is no free movement of labor or a common currency.