Which of the following would be considered a free trade area with the additional feature of a common external tariff on products originating from outside the union?
A) Customs importation union
B) Free trade union
C) External tariff union
D) Customs union
E) International tariff union

Question

Quizplus · Accepted Answer

A customs union involves countries agreeing to remove trade barriers between member countries and adopting a common external tariff on imports from non-member countries. This distinguishes it from a simple free trade area, which does not have the common external tariff feature.

Which of the Following Would Be Considered a Free Trade