The primary difference between a common market and a customs union is that the common market:
A)adopts a common set of external tariffs on nonmembers.
B)eliminates all tariffs.
C)eliminates all trade barriers.
D)removes all restrictions on the flow of capital and labor among member nations.
E)the number of countries involved.

Question

Quizplus · Accepted Answer

A customs union involves the adoption of a common set of external tariffs on nonmembers (choice A), while a common market goes further by also removing restrictions on the flow of capital and labor among member nations.

The Primary Difference Between a Common Market and a Customs