An Agreement That Involves Two or More Countries Eliminating Trade

question 25

Multiple Choice

An agreement that involves two or more countries eliminating trade restrictions on most or all mutual trade,maintaining a common set of trade barriers against imports from non-member countries,and permitting mobility of capital and labour among member countries is called

• A) a free trade area.
• B) a customs union.
• C) a common market.
• D) an economic and monetary union.
• E) a political union.

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Definitions:

Hessians

German mercenary soldiers hired by the British Crown to fight against the American colonial forces during the Revolutionary War.

Sovereign Nation

A political entity that possesses autonomy and independence, recognized by other states as having control over its territory and government.

Bunker Hill

A key early battle in the American Revolutionary War notable for the phrase "Don't fire until you see the whites of their eyes," demonstrating colonial forces could stand up to British regulars.

Articles of Confederation

The first constitution of the United States, ratified in 1781, which established a loose confederation of states with a weak central government, later replaced by the U.S. Constitution in 1789 due to its inefficiencies.