Economic integration whereby countries remove barriers to trade and the movement of labor and capital among members, set a common trade policy against nonmembers, and coordinate their economic policies is called a(n) ________.
A) customs union
B) common market
C) economic union
D) free trade area
Question 2
The main difference between a free trade area and a customs union is that the members of a customs union ________.
A) agree to the free movement of all factors of production
B) harmonize their tax, monetary, and fiscal policies and create a common currency
C) agree to treat trade with all nonmember nations in a similar manner
D) accept a common stance on economic and political policies regarding nonmember nations
Question 3
Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and set a common trade policy against nonmembers is called a ________.
A) free trade area
B) customs union
C) common market
D) preferential trade area
Question 4
________ require that member countries concede a certain amount of their national autonomy to the supranational union of which they are a part.
A) Free trade areas
B) Customs unions
C) Economic unions
D) Preferential trade areas
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