Question

Which of the following is an example of a free-trade area? A.) World Trade Organization. B.) European Union. C.) North Atlantic Treaty Organization. D.) African Union. E.) Warsaw Pact.

Answer 1

The European Union is an example of a free-trade area as it is a union focused on ensuring the free movement of people, goods, services, and capital within its internal market.

Step-by-step explanation:

The correct answer to the question 'Which of the following is an example of a free-trade area?' is B.) European Union. The European Union is an economic and political union of 27 member countries located primarily in Europe. Its goal is to ensure the free movement of people, goods, services, and capital within its internal market, thus qualifying it as a free-trade area. In comparison, the World Trade Organization, North Atlantic Treaty Organization, African Union, and Warsaw Pact are not free-trade areas. They serve different purposes and do not primarily focus on creating an internal market where goods and services can move freely.

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