An agreement between two countries to maintain a free trade area, a common external tariff free mobility of capital and labour and degree of…

CA Foundation · Business Economics · MTP · September 2025
An agreement between two countries to maintain a free trade area, a common external tariff free mobility of capital and labour and degree of unification in government policies and monetary policy is called:
(A) A. Common market
(B) B. Free Trade Area
(C) C. Economic Union
(D) D. Custom Union

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Economic Union

Topics: International Trade

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