If two countries remove all tariffs on each other's products and establish a common set of tariffs against the rest of the world, but take no further steps toward economic integration, these two countries have formed

Question

Quizplus · Accepted Answer

A customs union involves the removal of tariffs between member countries and the adoption of a common external tariff, while not necessarily requiring deeper economic integration or the free movement of factors of production.

If Two Countries Remove All Tariffs on Each Other's Products