Question

The countries of Mimbo, Juwan, and Ninot agreed to remove all barriers to the trade of goods and services among each other. However, the three countries agreed that each would be allowed to determine its own trade policies with regard to nonmembers. The economic integration among these three countries is a(n):

A) economic union.
B) free trade area.
C) customs union.
D) common market

Answer 1

Answer: The economic integration among these three countries is a FREE TRADE AREA.

Explanation: FREE TRADE AREA is defined as an international region in which obstacles to unrestricted trade have been reduced to a minimum. In free trade areas, all barriers to the trade of goods and services are removed however, each country is allowed to determine its own trade policies with regard to nonmembers.