Question

In the context of international trade,
rank the below mentioned
Preferential Trade Agreements
(PTAs) in decreasing order of depth
of integration required between the
member countries:
1. Free Trade Agreement (FTA)
2. Economic Union (EU)
3. Common Market (CM)
4. Customs Union (CU)
Select the correct answer​

Answer 1

Answer:

free trade agreement fta

Answer 2

Answer:

In the case of international trade, the economic integration occurs in stages, based on the depth of integration needed. It starts from the basic trade, removal of all barriers to the formation of an economic union.

In the decreasing order of the depth of integration, the Preferential Trade Agreements (PTAs) are arranged as follows:

1. Free Trade Agreements (FTAs)
2. Custom Unions (CUs)
3. Common Markets (CMs)
4. Economic Unions (EUs)