CFA CFA Level 1 Question of the Week – Economics

Question of the Week – Economics

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    • Avatar of AdaptPrepAdaptPrep
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        Which of the following forms of trading blocs allow for unrestricted trade of goods and services among its members?
        I. Free trade areas
        II. Customs unions
        III. Common market

        • I and II
        • II and III
        • I, II, and III
      • Avatar of hairyfairyhairyfairy
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          Looking forward to the explanation on this one!

        • Avatar of AdaptPrepAdaptPrep
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            All
            three of these
            allow for free, unrestricted access of trading goods
            and services. Of the above, the baseline is a free trade area. A customs union
            is a free trade area with common policies amongst trading with nonmembers. A
            common market is a customs union which also allows for free trading of
            intermediary (rather than final) goods.

          • Avatar of shannondailyshannondaily
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              Whoo! I got it right. 🙂 

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