In a free trade area, all barriers to the trade of goods and services

QUESTION

In a free trade area, all barriers to the trade of goods and services among member countries are removed and a common external trade policy is adopted.

Indicate whether the statement is true or false.

ANSWER

FALSE
In a free trade area, all barriers to the trade of goods and services among member countries are removed. Each country, however, is allowed to determine its own trade policies with regard to nonmembers.