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13-12-2019
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Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of?
A. A customs union
B. An economic union
C. A common market
D. A Free trade area

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sandlee09 sandlee09

15-12-2019

Answer:

D. A Free trade area

Explanation:

Based on the information provided within the question it can be said that this is an example of a free trade area. This refers to a region in which a trade block is in effect but whose member countries have signed a free trade agreement that allows them to reduce or completely get rid of trade barriers in order to increase trading of goods and services between them.

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