Final answer:
The statement is false; a free trade area is not the most fully developed form of trade agreement. An economic union represents a deeper form of economic integration, combining free trade with common policies and possibly a shared currency.
Step-by-step explanation:
The statement, "A free trade area represents the most fully developed form of preferential trade agreement among nations," is false. A free trade area allows for the unrestricted movement of goods among member countries by removing tariffs and quotas. However, it is not the most fully developed form of trade agreement. That title goes to an economic union, which, in addition to allowing free trade, also coordinates monetary and fiscal policies, and involves even deeper economic integration. For example, NAFTA, a well-known free trade agreement, eliminated trade restrictions between the United States, Canada, and Mexico, but it did not unite these countries under a single currency or common monetary and fiscal policies like the European Union has achieved with its members.