Which of the following statements is correct regarding Partial Scope Agreement (PSA)?
A.An agreement which is only partial in scope, meaning it allows for trade between countries on a small number of goods.
B.A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non members.
C.A free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.
D.The market where movement of factors of production is relatively free amongst member countries.
Answer:A
Which of the following statements is correct regarding Partial Scope Agreement (PSA)?
A.An agreement which is only partial in scope, meaning it allows for trade between countries on a small number of goods. B.A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non members. C.A free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members. D.The market where movement of factors of production is relatively free amongst member countries.
Explanation: Preferential Trade Agreements (PTAs) have five distinguish forms with each subsequent arrangement being a deeper form of integration, requiring more coordination and a greater loss of autonomy.