When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
Correct answer: C. common market
- A. free trade area
- B. customs union
- C. common market
- D. economic union
Explanation
A common market combines a customs union with the free movement of labor and capital among member countries. An economic union goes further by coordinating or harmonizing major economic policies.
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