Match the items of List - I with List - II and choose the correct code of combination :List - I List - II (a) It abolishes all restrictions on trade among the members (i) Common Market (b) It not only eliminates all restrictions on trade among members but also adopts a uniform commercial policy against the non-members (ii) Economic Union (c) It allows free movement of labour and capital within the common market (iii) Free Trade Area (d) It achieves some degree of harmonization of national economic policies, through a common central bank, unified monetary and fiscal policy, etc. (iv) Customs Union
Matching Economic Integration Concepts
This question requires matching definitions of different levels of economic integration from List I with their corresponding terms in List II.
| List I Description | List II Term |
|---|---|
| (a) It abolishes all restrictions on trade among the members | (iii) Free Trade Area |
| (b) It not only eliminates all restrictions on trade among members but also adopts a uniform commercial policy against the non-members | (iv) Customs Union |
| (c) It allows free movement of labour and capital within the common market | (i) Common Market |
| (d) It achieves some degree of harmonization of national economic policies, through a common central bank, unified monetary and fiscal policy, etc. | (ii) Economic Union |
Explanation of Matches
- Free Trade Area (FTA): Members eliminate internal trade barriers (like tariffs and quotas) among themselves but maintain individual trade policies with non-member countries. This matches item (a).
- Customs Union: Similar to an FTA, but members also adopt a common external trade policy (common tariff) towards non-member countries. This matches item (b).
- Common Market: Extends a customs union by allowing for the free movement of factors of production, such as labor and capital, among member countries. This matches item (c).
- Economic Union: Represents a deeper level of integration. It includes the features of a common market and further harmonizes economic policies, often involving a common currency, central bank, and unified fiscal/monetary policies. This matches item (d).
Important Questions from Regional Economic Integration
The headquarters of the ASEAN is located in which of the following country?
Which one of the following FTA was signed in February 2022 and came into force in May 2022?
Mercosur, a South American Trade block is a :
Grouping of countries commited to remove all barriers to the free flow of goods and services between themselves and also pursue independent external trade policies is called
Arrange the following levels of economic integration, from least integrated to the most integrated:
A. Customs Union
B. Free Trade Area
C. Economic Union
D. Common Market
E. Political Union
Choose the correct answer from the options given below
