If the United States and Canada abolish all tariffs on each other's goods and implement a common tariff on goods imported from other countries,there occurs a (an):
A) Free-trade area
B) Customs union
C) Common market
D) Economic union

Question

Quizplus · Accepted Answer

The scenario described is that of a customs union, which involves the elimination of internal tariffs between member countries and the implementation of a common external tariff on goods imported from outside the union. A free trade area would only eliminate internal tariffs, while a common market and economic union involve even greater levels of integration such as the free movement of goods, services, capital, and people.

If the United States and Canada Abolish All Tariffs on Each