Which of the following is true with regard to a free trade area?
A)Factors of production are allowed to move freely between member nations.
B)Each member country is allowed to determine its own trade policies with regard to nonmembers.
C)Member nations are required to have a common currency.
D)Member nations are required to have a common monetary and fiscal policy.
E)Member nations are required to have a central political apparatus that coordinates economic, social, and foreign policy.

Question

Quizplus · Accepted Answer

In a free trade area, each country is allowed to determine its own trade policies with regard to nonmembers. Thus, for example, the tariffs placed on the products of nonmember countries may vary from member to member.

Which of the Following Is True with Regard to a Free