Economic integration ?
Correct answer: C. occurs when two or more nations join to form a free-trade zone
- A. occurs when countries are granted most favored nation status
- B. occurs when one country voluntarily agrees to reduce its exports to another country
- C. occurs when two or more nations join to form a free-trade zone
- D. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets
Explanation
Economic integration means countries reduce trade barriers and coordinate their economies; a free-trade area is one recognized stage of this process. Most-favoured-nation treatment alone is non-discriminatory trade treatment, not integration.
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