The European Free Trade Association is a trade organization that consists of 4 European states and includes Iceland, Lichtenstein, Norway and Switzerland. It was established on May 3rd 1960 and historically has been one of the two dominant European trade blocks on Western Europe. It was created as an alternative trade block for the countries that were unable (or unwilling) to join the European Economic Community which evolved into the European Union. The founding members of the EFTA also included Austria, Denmark, Portugal, Sweden and the UK but they eventually joined the European Union. The European Union is a Political and Economic Union with 28 member States mostly from Europe. The European Union has helped with standardization of laws, free movement of people, goods and services and even abolished the use of passports for travel within the Schengen Area which includes some countries on the EU and others from the EFTA. The answer of this question is A) True since the EU has a larger reach, more member states and a larger population than the EFTA. Even though the European Union is more comprehensive, there have been trade agreements made between both EFTA and the EU and other agreements such as the Schengen as mentioned before.