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svetlana [45]
3 years ago
6

______ involves the free flow of products and factors of production between member countries, the adoption of a common external

trade policy, a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy.
A) An economic union
B) A common market
C) A customs union
D) A free trade area
Business
2 answers:
Ivahew [28]3 years ago
5 0

Answer:

A, an economic Union.

Explanation:

An economic union is a type of trade agreement concerning the same market of commodities, between a group of countries.

The trade agreement usually involves the free flow of the factors of production as well as factors of production.

Also, the agreement means that countries that are a part of the economic union are able to adopt a currency, regulate and harmonize tax rates as well as implement similar policies.

Asides economic union, there are other types of trade agreements and they include, free-trade zones, custom union, etc.

Cheers.

Whitepunk [10]3 years ago
3 0

Answer:

D. A free trade area

Explanation:

A free trade area is considered as a particular region where countries have decided to allow a trade to occur in their countries with little or no barriers. The countries signed a <em>free trade agreement. </em>

Free trade areas also have their pros and cons. They promote international division of labor and free trade, however, free trade areas are susceptible to politics and international relations.

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