Question 48
International Economic OrganisationsA free trade area is one in which
- A.each member operates its own barriers against non-members.
- B.factors of production are mobile.
- C.members adopt a common external tariff against non-members.
- D.members adopt common fiscal and economic policies.
Show the answer and explanation
Answer: A (each member operates its own barriers against non-members.)
Explanation
In a free trade area members trade freely with each other but each keeps its own tariffs against outsiders.