Trade Agreements and Economic Unions Quiz

A Free Trade Area is a region where:

• Countries adopt a single currency and common economic policies.

• Goods and services are traded without tariffs or restrictions between member countries.

• Member countries establish common external tariffs against non-members.

• There are no borders or immigration controls between member countries.

A Customs Union is an agreement between countries to:

• Allow free movement of people and labour across borders.

• Remove tariffs between member countries and adopt a common external tariff on imports from non-member countries.

• Create a single market with harmonised regulations and standards.

• Use a common currency for all member countries.

A Common Market allows for:

• The free movement of goods, services, capital, and labour between member countries.

• The adoption of a common currency and monetary policy.

• The imposition of tariffs on all imported goods.

• Member countries to trade only certain goods without tariffs.

An Economic Monetary Union is characterised by:

• Member countries maintaining their own currencies but coordinating economic policies.

• The establishment of a common market without monetary integration.

• Member countries adopting a common currency and common monetary policies.

• The elimination of all trade barriers between countries.

A Trade Agreement is a deal made between countries to:

• Merge their economies into a single entity.

• Designate a common language for trade and commerce.

• Set terms for international trade, such as reducing tariffs and import quotas.

• Create a political union with shared governance.