A free trade area is a group of countries that have Blank______.Multiple choice question.tariff-free trade, common trade barriers with outside nations, and free movement of labour and capital within the areatariff-free trade, though they can impose separate tariff barriers on outside countriestariff-free trade and common trade barriers with outside countriesa common defense policy
Question
A free trade area is a group of countries that have Blank______.Multiple choice question.tariff-free trade, common trade barriers with outside nations, and free movement of labour and capital within the areatariff-free trade, though they can impose separate tariff barriers on outside countriestariff-free trade and common trade barriers with outside countriesa common defense policy
Solution
The correct answer is: "tariff-free trade, though they can impose separate tariff barriers on outside countries".
A free trade area is a group of countries that have agreed to eliminate tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. However, each country is free to determine its own trade policies with nonmember nations. This differentiates a free trade area from a customs union, which does have a common external tariff.
Similar Questions
A Free Trade Area is:Question 40Select one:a.When a group of nations abolishes trade restrictions among themselves and imposes common and uniform tariffs on other nations.b.When a group of nations provides for the free mobility of factors of production among the member nations.c.When a group of nations adopts trade restrictions among themselves without also imposing common tariffs on other nations.d.When a group of nations abolishes trade restrictions among themselves without also imposing common tariffs on other nations.e.When a group of nations abolishes trade restrictions among themselves but also imposes common tariffs on other nations.
Multiple Choice QuestionA customs union is a group of countries that have Blank______.Multiple choice question.tariff-free trade, common trade barriers with outside nations, and free movement of labour and capital within the areatariff-free trade and common trade barriers with the outside countriestariff-free trade, though they can impose separate tariff barriers on outside countriesundertaken to become one country
A group of states that have reduced or eliminated trade barriers among themselves and have established a common external tariff is called ________.Group of answer choicesan economic consultative associationthe United Nations Systema customs uniona free trade area
What is meant by the phrase "free trade"?A.That there are no shipping costs within those countriesB.That international business is not limited by tariffs or quotasC.That products traded between those countries are at no chargeD.That companies are expected to make less profit
The global movement towards free trade is based upon the reduction or elimination of ______.Multiple choice question.production efficiency incentivestrade barriersglobal tax havensnon-capitalist governments
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