This question was avoided by majority of the candidates. The few candidates that attempted it demonstrated poor understanding of the concepts. Candidates were required to state two features each of free trade area and common market in the (a) part and to outline two advantages and two disadvantages of free trade area and common market in the (b) part of the question. Most candidates had no idea on what the question was all about, apparently most teachers did not cover this aspect of the syllabus. Few candidates that attempted this question scored below average marks. 

These candidates were expected to give the following answers to score good marks:

(a)(i) Free trade area
-       Member countries remove all kinds of restrictions in trade among themselves.
-       Member countries have no common tariff policy in their trade with outsiders. Each country determines its own tariff policy.                                       

    (ii)    Common market

• Member countries remove all kinds of restrictions on trade among themselves.
• Member countries have a common tariff policy against non-members.
• Free movement of factors of production.

(b)        Advantages
(i)    Existence of a large market such that firms have access to the market of member countries.
(ii)   Large scale production with possibility of regional specialization.
(iii)  There is more efficient allocation of resources, since resources move about freely in the region.
(iv)  Development may spread from more advanced countries to less developed ones.
(v)   It fosters peace, unity and understanding among members.
(vi)  Consumers have a wider market to choose from, and at better prices.

Disadvantages
(i)  Trade from cheaper sources outside the region are diverted.ie cheaper sources are prevented from entering the union.
(ii)  Developed  members may develop at the expense of the weak and poor ones.
(iii)             There is loss of revenue which affects the growth of the poorer members.