Which of the following characterizes a customs union?
A) It requires each member to maintain different external policies regarding non-members.
B) It imposes common external policies on non-members.
C) It integrates the political and economic affairs of a region.
D) It permits the free movement of goods and people among its members.

Question

Which of the following characterizes a customs union? 
A) It requires each member to maintain different external policies regarding non-members. 
B) It imposes common external policies on non-members. 
C) It integrates the political and economic affairs of a region. 
D) It permits the free movement of goods and people among its members.

Quizplus · Accepted Answer

A customs union is a type of trade agreement in which member countries agree to impose common external tariffs on non-member countries. This means that all member countries have the same policies when it comes to trade with non-members, and non-members face the same tariffs regardless of which member country they are trading with. A customs union does not necessarily require the free movement of goods and people among its members, nor does it necessarily integrate political and economic affairs.

Which of the Following Characterizes a Customs Union