A group of countries that agrees just to eliminate all tariffs between them,is called a
A) customs union.
B) free trade area.
C) common market.
D) monetary union.

Question

Quizplus · Accepted Answer

A free trade area is a group of countries that agree to eliminate all tariffs and trade barriers between them. They may still maintain individual tariffs on non-member countries. A customs union goes a step further, by not only eliminating tariffs between member countries but also establishing a common external tariff on non-member countries. A common market also includes the free movement of goods and services, but also includes the free movement of people, capital, and labor. A monetary union involves the adoption of a common currency among member countries.

A Group of Countries That Agrees Just to Eliminate All