_______ has no barriers to trade between member countries, includes a collective external trade policy, and allows factors of production to move freely between members.

Question

BlackTom AI · Accepted Answer

Restating the question and all answer options to establish the framework: The question asks which arrangement has no barriers to trade between member countries, includes a collective external trade policy, and allows factors of production to move freely between members. The answer options are: 1) An economic union 2) A full political union 3) A common market 4) A customs union.

Option 1: An economic union. An economic union typically combines a customs union and a common market, and may also coordinate monetary and fiscal policies. However, the phrase in the question about free movement of factors of production and a single external trade policy aligns more specifically with a common market rather than the broader economic union, which is a more integrated stage that usually includes political and policy harmonization beyond just trade and mobility.

Option 2: A full political union. A full political union involves harmonized or centralized political structures, governance, and decision-making across member states. While it may entail free movement of goods and possibly capital and labor, the defining feature is political integration, not just trade liberalization and mobility. The description in the question is primarily about trade barriers, external policy, and factor mobility, which does not inherently require a full political union.

Option 3: A common market. This option matches the classic economic integration stage characterized by the elimination of internal barriers to trade, a collective external trade policy, and the free movement of factors of production (goods, services, capital, and labor) across member countries. The combination of no internal barriers, external policy coordination, and mobility of resources is the hallmark of a common market, distinguishing it from other arrangements.

Option 4: A customs union. A customs union eliminates tariffs and trade barriers between member states and adopts a common external tariff, but it does not inherently guarantee the free movement of factors of production like labor and capital across borders. The absence of internal barriers to all factors of production distinguishes a common market from a simple customs union.

In summary, each option presents a different level or aspect of economic integration. The description emphasizing no internal trade barriers, a single external trade policy, and free movement of production factors aligns most closely with a common market rather than the other forms of integration described here.

_______ has no barriers to trade between member countries, includes a collective external trade policy, and allows factors of production to move freely between members.

View Explanation

Log in for full answers

Similar Questions

What are the two key economic or political impediments or disadvantages of greater economic integration among countries?

Why is the European Union considered an imperfect economic union?

Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to trade of goods and services. They, however, are free to determine their own trade policies regarding nonmembers. Which level of economic integration is this an example of?

Why might existing EU members support enlargement even if they anticipate increased competition in product and labour markets?

Empirical evidence on Gross Domestic Product (GDP) effects of SM accession suggests:

Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of?

Which of the following is a reason the European Union is considered an imperfect economic union?

Which level of economic integration is limited to the elimination of trade barriers between member countries and the adoption of a common external trade policy?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler