It Has Been Suggested That Cooperative Inter-Relationships Between Countries (Regional

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The Answer is a. Free Trade Area. This form has a higher level of integration than a loosely
formed regional cooperation and is a formal agreement among two or more
countries to reduce or eliminate customs duties and non-tariff barriers among
partner countries.
1). NAFTA is an illustration.
2). The free trade area is not free of all trade barriers.
b. Customs Union. When members of a free trade area add common external
tariffs to the provisions of the free trade agreement then the free trade area
becomes the customs union (ASEAN is an example).
c. Common Market. A common market eliminates all tariffs and barriers to
trade among members of the common market, adopts a set of external tariffs
on non-members, and removes all restrictions on the flow of capital and
labor among member nations.
d. Monetary Union. In this form, member nations move to a common currency
and a central bank.
1). The European Union has achieved this step.
e. Political Union. In this phase, new nations are created. Integration is achieved
on a voluntary basis. A loose political union normally comes first (such
as the British Commonwealth).

It Has Been Suggested That Cooperative Inter-Relationships Between Countries (Regional

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It Has Been Suggested That Cooperative Inter-Relationships Between Countries (Regional

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