If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?
Correct answer: C. customs union
- A. common market
- B. free trade area
- C. customs union
- D. federation
Explanation
A customs union removes trade barriers among its members and applies a common external tariff to non-members. A free-trade area removes internal barriers but allows each member to set its own external tariffs.
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