Question

MC 07 Countries A, B, and C are at a particular... Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. If these countries remove all restrictions on the free flow of capital and labor among themselves, they represent a Multiple Choice free trade area. common market. political union. preferential trade area.

Answer 1

Answer:

common market

Explanation:

We are not told anything about the political status of contries A, B and C, so we should assume that they lack political unity, therefore they are forming only a common market.

A common market is defined by a group of countries that impose few or no duties to common trade between them, but impose common tariffs on external trade.

The European Union started as a common market during the 1960s and 1970s known as the European Economic Community. Then it evolved into a political union. Another example would be the Mercosur in South America.