Final answer:
The transnational trading group formed by European countries after signing a trade agreement creating a free trading zone is called the European Union (EU). It began as a free trade association and evolved into a full economic union introducing the euro as the common currency and eliminating trade barriers among its member states. Option A is the correct answer.
Step-by-step explanation:
When the European countries signed a trade agreement creating a free trading zone between the countries, they formed a transnational trading group called the European Union (EU). After World War II, in an effort to foster economic cooperation and prevent further conflicts, several European nations began integrating their economies.
The process started with a free trade association and gradually evolved into an economic union with the introduction of the euro as a common currency for many of its members.
The EU aims to facilitate the movement of goods, labor, and capital across Europe, effectively removing barriers to trade and promoting economic interdependence among its member states. Other regions have formed similar trade agreements, such as NAFTA in North America. However, it was the EU that set a precedent for economic unions, with an expansive policy that covers various aspects of economic, social, and environmental issues.
In conclusion, the correct option is A. the European Union (EU), a pivotal establishment in the realm of global trade that symbolizes the power of economic integration.