Whenever countries set up a Free Trade Area, they abolish all restrictions on trade among themselves and
This questions was previously asked in
EPFO APFC (2015)
They establish a common external tariff on imports from outside countries
Correct AnswerThey abolish all restrictions on imports from outside countries
Incorrect AnswerThey abolish all restrictions on imports from other Free Trade Areas
Incorrect AnswerEach country maintains its own set of tariffs and quotas on imports from outside countries
Incorrect AnswerExplanation:
Whenever countries set up a Free Trade Area, they abolish all restrictions on trade among themselves and they establish a common external tariff on imports from outside countries.
![]()
By: Udit Singla