The countries of Mesomia, Candera, Blauthop, and Rochus are committed to removing all barriers to the free flow of goods and services between each other but want to pursue independent external trade policies. The countries have in mind a (n)

Question

Chace Melendez

Business

31 March, 10:19

The countries of Mesomia, Candera, Blauthop, and Rochus are committed to removing all barriers to the free flow of goods and services between each other but want to pursue independent external trade policies. The countries have in mind a (n)

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Answers (2)

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Samara Hess · Answer 1

The countries have a Foreign Trade Zone (FTZ) in mind

Explanation:

A foreign-trade zone is a class of special economic zone. It is a geographic area where goods may be landed, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.

Here, all barriers to the free flow of goods and services between participating countries are removed but they still maintain their dependent external trade policies

Foreign-trade zone also called free-trade zone began in the 1960s and began to increase exponentially in the 1980s. Today, there are over 5,400 FTZs in the world.

Kira Guzman · Answer 2

Answer: Free Trade Area

Explanation:

A free trade area is used when countries want a free trade between other countries whereby there'll be no restrictions or form of protectionism between the countries involved.

Free trade means that countries involved can import and export goods without encountering any tariff barriers or non-tariff barriers to trade such as quotas. Free trade leads to increased exports, lower prices for consumers, economies of scale and a higher choice of goods.