A(n)_____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other,but pursuing independent external trade policies.
A) free trade area
B) command economy
C) efficient market
D) foreign exchange market
E) location economy

Question

Quizplus · Accepted Answer

A free trade area is a group of countries that have mutually agreed to remove all trade barriers, such as tariffs and quotas, between their countries but still have independent external trade policies. This means that each country can still negotiate its own trade deals with non-member countries, unlike a customs union where all member countries collectively negotiate with external countries. Examples of free trade areas are NAFTA (North American Free Trade Agreement) and ASEAN (Association of Southeast Asian Nations).

A(n)_____ Is Defined as a Group of Countries Committed to Removing