The diagram below shows supply and demand curves for bicycles in the domestic Canadian market. Assume that all bicycles are identical.
FIGURE 34- 4
-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

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market. Assume that all bicycles are identical.
  FIGURE 34- 4
-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

Quizplus · Accepted Answer

A customs union involves the elimination of trade barriers among member countries and the adoption of a common external tariff, but it does not allow for the free movement of factors of production like a common market does.

The Diagram Below Shows Supply and Demand Curves for Bicycles