Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

A country is prepared to engage in free trade with its neighbouring countries and to permit the unrestricted movement of factors of production between them. However, it does not want to adopt a common currency or a common external tariff. In what type of economic relationship is it likely to have with its neighbours?

  • Aa common market
  • Ba customs union
  • Can economic union
  • Da free trade area

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