Final answer:
The European Union is a major free trade agreement that has introduced the euro and eliminated trade barriers among member states to enhance economic integration, although it has faced challenges like Brexit.
Step-by-step explanation:
The European Union (EU) is the most prominent example of a free trade agreement and serves as an important measure for reinforcing its position in global trade. After World War II, European nations began integrating their economies, starting from a free trade association to a common market, and ultimately forming an economic union with the goal of preventing further wars. Key elements of the EU include the introduction of the euro as a common currency, eliminating the former national currencies like the German mark and the French franc, and removing barriers to enhance the mobility of goods, labor, and capital.
Although the EU managed to largely achieve these goals, it has also seen challenges such as the departure of Britain in 2020, a move known as Brexit. The changing landscape of global trade has also seen a rise in regional trade agreements, with roughly 100 now in existence, which some economists liken to a spaghetti bowl due to their complexity and interconnected nature. These developments underscore the dynamic and often complex nature of international trade agreements and the ongoing efforts by regions like the EU to adapt and maintain their influence in the global market.