Which of the following forms of economic integration is a member nation free to impose duty against non-members

Analyze the question: The question asks which form of economic integration lets each member country set its own tariffs (duties) against non-members.

Explain the concept: Economic integration moves through stages, and each stage adds more shared policy:

1. Free Trade Area (FTA): Members remove trade barriers (tariffs and quotas) among themselves. Each member keeps its own independent tariffs against non-members. Example: AfCFTA, NAFTA.
2. Customs Union: This is an FTA plus a Common External Tariff. All members must charge the same duty on imports from non-members. Example: the EU's customs union.
3. Common Market: This is a customs union plus free movement of labour and capital. Example: the European Single Market.
4. Economic Community / Union: This is a common market plus harmonised economic policies, and sometimes a common currency. Example: ECOWAS aims for this, and the EU has reached it.

Step-by-step solution:

• The key phrase is "a member nation is free to impose duty against non-members."
• A customs union (A) requires a common external tariff, so members are not free to set their own.
• A common market (C) includes a customs union, so the same restriction applies.
• An economic community (D) is even more integrated, so the same restriction applies.
• Only in a free trade area (B) does each member keep the freedom to set its own duties on non-members.

Answer: B. Free trade area

Tip: Remember that "free trade area" means free trade inside the group only. Outside the group, each country makes its own rules. The moment a common external tariff appears, you have moved up to a customs union. The order is FTA → Customs Union → Common Market → Economic Union.