_______ has no barriers to trade between member countries, includes a collective external trade policy, and allows factors of production to move freely between members.Single choice
A
An economic union
B
A full political union
C
A common market
D
A customs union

Question

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

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.Single choice

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