A common market has no barriers to trade among member countries, inclu

QUESTION

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

Indicate whether the statement is true or false.

ANSWER

TRUE
A common market has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members. Labor and capital are free to move because there are no restrictions on immigration, emigration, or cross-border flows of capital between member countries.