Question

73. Arrange the stages of Economic Integration in correct sequence:
1. Free Trade Agreement
2. Preferential trade Agreement
3. Common Market
4. Custom Union
Select the correct answer using the codes given below

• A. 1-2-3-4
• B. 2-1-3-4
• C. 2-1-4-3
• D. 1-3-2-4

Answer 1

The correct option is C 2-1-4-3

Stages of Economic Integration:
1. Preferential Trade Agreement
2. Free Trade Agreement
3. CECA/CEPA
4. Custom Union
5. Common Market
6. Economic Union
A trade agreement is an arrangement between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on limited/substantial trade between them. It also includes tax benefits and investment guarantees. The most common trade agreements are of the preferential and free trade types in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. Trade Agreements can create opportunities for and help to grow Indian economy.