What is Free Trade Area ?

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Q. What is Free Trade Area ?

Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2024Subjective· 2mImportance★★★★★

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A Free Trade Area is a regional bloc in which member nations remove trade barriers among themselves while each retains its own independent tariff policy toward non-members.

In the Tamil Nadu HSC Commerce syllabus, a Free Trade Area is the most basic stage of regional economic integration.

Member countries remove tariffs, quotas and other trade restrictions on goods traded among themselves.
Each member keeps its own separate tariff and trade policy against countries outside the group (unlike a customs union, which has a common external tariff).
The aim is to expand trade and cooperation within the region. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2025Set MARCH1 markMCQ
$Q. SAARC meets once in __________ years.$
(a) 2
(b) 5
(c) 3
(d) 4
›Reveal solutionSolution

SAARC meets once in two years — option (a).

In the Tamil Nadu HSC Class-12 Economics syllabus (International Economic Organisations), the South Asian Association for Regional Cooperation (SAARC), formed in 1985, is the regional grouping of South Asian nations. As stated in th …

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CBSE 2024Set MARCH1 markMCQ
$Q. Which of the following does not come under 'Six dialogue partners' of ASEAN ?$
(a) India
(b) China
(c) North Korea
(d) Japan
›Reveal solutionSolution

North Korea does not come under the six dialogue partners of ASEAN.

The Association of Southeast Asian Nations (ASEAN) is a regional economic organisation that maintains formal relations with several external countries known as its dialogue partners. As listed in the syllabus, its major dialogue partners include India, China, Japan, along with others in the Asia-Pacific region.

…

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CBSE 2023Set MARCH1 markMCQ
$Q. BENELUX is a form of :$
(a) Common Market
(b) Free trade area
(c) Customs Union
(d) Economic Union
›Reveal solutionSolution

BENELUX is a customs union, so option (c) is correct.

In the regional-economic-integration topic of the Tamil Nadu HSC Commerce syllabus, forms of economic integration range from a free-trade area, to a customs union, common market and economic union.

…

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CBSE 2022Set MARCH1 markMCQ
$Q. New Development Bank is associated with :$
(a) SAARC
(b) BRICS
(c) ASEAN
(d) WTO
›Reveal solutionSolution

The New Development Bank is the BRICS bank, so option (b) is correct.

The New Development Bank (NDB) was established in 2014 by the BRICS countries — Brazil, Russia, India, China and South Africa — with its headquarters in Shanghai. It funds infrastructure and sustainable development projects in the member and other emergi …

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Q.What is Free Trade Area ?

Concept understanding — Regional Economic Organisations

Q.What is Free Trade Area ?

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