A group of free trade member countries that have adopted a common external tariff with nonmember countries is called a(n)_____.
A) customs union
B) economic union
C) free trade area
D) common market
E) political union

Question

Quizplus · Accepted Answer

A customs union is a group of countries that have a common external tariff and free trade within the union. Nonmembers face the common external tariff when exporting to countries within the union. Economic union members also have common policies for labor and capital mobility, while a free trade area only has free trade within the group. A common market allows for the free movement of goods, services, capital, and labor, and a political union involves greater integration and coordination of policies at the national and supranational levels.

A Group of Free Trade Member Countries That Have Adopted