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JAMB Economics 2010 Question 46

Question 46

International Economic Organisations

One of the characteristics of free trade zone is

  1. A.common tariff against non-member countries
  2. B.different trade policies of non-member countries
  3. C.free factor mobility within the zone
  4. D.harmonized trade among member countries.
Show the answer and explanation

Answer: D (harmonized trade among member countries.)

Explanation

In a free trade area member countries remove trade barriers among themselves. A common external tariff belongs to a customs union, and free factor movement to a common market.