Question

Lumberne is a continent comprising 18 countries. Currently, Lumberne is a free trade area and an economic union including all 18 countries as members of free trade. Although each country is politically independent, governments of at least 12 countries are negotiating to form a common government. If Lumberne comes to be led by a single government, it would be a _____.

Answer 1

Answer: Political union

Explanation:

Economic integration is an agreement among the countries in a region that is aimed to reduce and remove the barriers to the free flow of the factors of production and goods or services.

A political union is a type of union that is formed out of smaller states. A political union is the most advanced form of integration wherby there is a common government and one where the sovereignty of member countries are reduced. It is found within federations where there's a central government and level of autonomy in the regions.