If two countries remove all tariff and nontariff barriers to trade between them, adopt a common external tariff on imports from the outside world, and permit free factor movements between themselves, but take no further steps toward economic integration, this economic coalition that has been formed is a

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A common market allows for the free movement of goods, services, and factors of production (such as labor and capital) between member countries, in addition to adopting a common external tariff. This goes beyond a customs union, which would only include the common external tariff and the removal of internal tariffs, but not necessarily allow for free factor movements.

If Two Countries Remove All Tariff and Nontariff Barriers to Trade