Final answer:
A Free Trade Agreement is an alliance that eliminates cross-border trade barriers, with the European Union being a prominent example that includes a common currency, the EURO, and free mobility of goods, labor, and capital.
Step-by-step explanation:
An alliance of two or more countries that have agreed to eliminate tariffs and other restrictions on the cross-border flow of products, services, capital, and sometimes labor is known as a Free Trade Agreement (FTA). This kind of agreement aims to facilitate easier trade and investment between the member countries by reducing trade barriers.
One of the most comprehensive examples of such an agreement is the European Union (EU), which began as a free trade association and evolved into a full economic union. It has established its own common currency, the EURO, and works to eliminate barriers to the mobility of goods, labor, and capital across Europe.