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A ________ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.

User Phisch
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Final answer:

A common market is an economic agreement that allows for the free movement of goods, services, labor, and capital, and adopts a unified external trade policy among member nations.

Step-by-step explanation:

The blank in the question can be filled with the phrase common market. A common market is an economic agreement between countries that eliminates all tariffs and other restrictions on internal trade, adopts a common set of external tariffs, and removes all restrictions on the free flow of capital and labor among member nations.

This type of market integration goes beyond a free trade agreement by allowing not just goods, but also services, labor, and financial capital to move freely across borders. An example of a common market is the European Union (EU), which has established such conditions among its member states.

15. A free trade association offers free trade between its members only, whereas a common market like the EU requires a common external trade policy in addition to free trade within the group. An economic union expands upon this by coordinating monetary and fiscal policy among its members.

User AniketGM
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