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

A customs union is an agreement among a group of countries to eliminate trade barriers among themselves and present a common trading front to the rest of the world in terms of common tariffs, but it does not permit free movement of factors of production among member countries. A common market would permit free movement of factors of production, while a free-trade area would eliminate tariffs among members but allow different tariff policies with non-member countries. Confederation and reciprocity association are not relevant terms in this context.

An Agreement Among a Group of Countries to Eliminate Trade