Free Internatinal Trade Flashcards
What does free trade eliminate between countries?
Import quotas
What is an open economy?
An economy that engages in international trade through importing and exporting goods and services.
What is a trading bloc?
A group of countries that allow free trade among themselves, eliminating tariffs and trade barriers.
What is a free trade area?
An agreement where countries reduce or eliminate tariffs and barriers on trade between each other, allowing goods to move freely.
What is a customs union?
An agreement where countries trade freely among themselves and adopt a common external tariff on imports from non-member countries.
What is a common market?
A step towards economic integration where member countries remove trade barriers, harmonise economic policies, and allow free movement of goods, services, capital, and labour.
What is the European Union known for?
A single market
What is the European Union?
A single market and a customs union where member states can trade freely without restrictions.
