What term describes an economic pact that is based on free trade among members and a common external tariff for all trade with nonmembers?
A)Preferential trade arrangement
B)Free trade area
C)Customs union
D)Economic union
E)Nondiscriminating trade organization

Question

Quizplus · Accepted Answer

A customs union is a type of economic pact that involves free trade among its members and a common external tariff for all trade with nonmembers. This means that goods can flow freely among the members of the union, but there are consistent tariffs on goods from countries outside of the union. This is different from a free trade area, which only involves free trade among members without a common external tariff.

What Term Describes an Economic Pact That Is Based on Free