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statuscvo [17]
3 years ago
9

"A(n) _________________________ involves the free flow of products and factors of production among member-countries and the adop

tion of a common external trade policy, but it also requires a common currency, harmonization of members tax codes, and a common monetary and fiscal policy."
Business
2 answers:
DENIUS [597]3 years ago
8 0

Answer:

The correct answer is Economic union.

Explanation:

The economic union is the international trade agreement of the highest rank, because it supposes a total harmonization between the economic policies of the participating countries. This, with the aim of reaching a situation of convergence and unification.

In terms of integration, an economic union would be equivalent to the most advanced form or modality, since it translates into the creation of common markets between two or more countries and eliminating a large number of barriers.

Said process of economic harmonization facilitates the free movement of companies or families of the member countries in terms of production factors such as capital or labor and, therefore, stimulating import and export.

Among the many tools available when establishing a firm economic union, we would speak of the unification or integration of fiscal and monetary policies. The member countries give up part of their competences in these matters in exchange for being able to join this association and they promise to comply with the directives of the union in fields such as economics or politics.

melisa1 [442]3 years ago
3 0

Answer:

"An economic and monetary union involves the free flow of products and factors of production among member-countries and the adoption of a common external trade policy, but it also requires a common currency, harmonization of members tax codes, and a common monetary and fiscal policy."

Explanation:

A monetary and economic union is a common market with a common currency. Monetary unions have not necessarily created a common market; in fact, the only monetary and economic union in the world is the Eurozone of the European Union, made up of members of the Union who have adopted the euro as their state currency. It is considered one of the most advanced stages of economic integration.

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