26 Trade Blocs

Question 1

Define common market

Answer 1

a market where goods, labour and capital can move freely across the member states.

Question 2

Define customs union

Answer 2

a union where member states remove all trade barriers between themselves and members adopt a common set of barriers against non-members.

Question 3

Define economic and monetary union

Answer 3

an economic union that uses a common currency.

Question 4

Define FTA

Answer 4

Free trade area is a region where member states remove all trade barriers between themselves but each state nevertheless keeps barriers against non-member states.

Question 5

Define recession

Answer 5

a less severe form of economic depression.

Question 6

Define single market

Answer 6

a market where most trade barriers between members have been removed and common laws or policies aim to make the movement of goods and services, labour and capital between contries as easy as the movement within each country.