An agreement among a group of countries to eliminate trade barriers among themselves,to present a common trading front to the rest of the world in terms of common tariffs,but which does not permit free movement of factors of production among member countries,is called a

Question

Quizplus · Accepted Answer

The description provided aligns with the definition of a customs union. This type of agreement eliminates trade barriers among member countries and establishes a common external tariff but does not permit free movement of factors of production. A common market allows for the free movement of factors of production, a reciprocity association and confederation are not commonly used terms to describe trade agreements, and a free-trade area eliminates trade barriers but does not necessarily establish a common external tariff.

An Agreement Among a Group of Countries to Eliminate Trade