Regarding stages of economic integration, a customs union
A) goes beyond a free trade area by including a common external tariff.
B) falls short of a free trade area by excluding a common external tariff.
C) goes beyond a common market by including a common transportation policy.
D) goes beyond a common market by including a common agricultural policy.

Question

Quizplus · Accepted Answer

A customs union includes a common external tariff, which means that member countries set the same tariffs on imports from non-member countries. This goes beyond a free trade area, which eliminates tariffs on trade among member countries but maintains individual tariffs on imports from non-member countries.

Regarding Stages of Economic Integration, a Customs Union