Question

According to the text, which of the following is the first step to regional integration? a. A free trade area b. A political union c. A customs union d. An economic union e. A common market

Answer 1

Answer:

a. A free trade area.

Explanation:

Regional integration is a process in which neighboring countries work together and closely to achieve peace, increase global competitiveness and wealth by cooperation of each other and setting common rules. The first step to achieve regional integration is to create a free trade area. The purpose of free trade is to minimize all the barriers that restrict a trade and increase trade for welfare of both countries.