Which of the following is true of the customs unions in South America?
A) The Andean Community's largest trading partner is China.
B) Mercosur is more pro-free trade than the Andean Community.
C) Andean Community and Mercosur countries are today integrated into the FTAA.
D) Mercosur is relatively more protectionist than the Andean Community.

Question

Which of the following is true of the customs unions in South America? 
A) The Andean Community's largest trading partner is China. 
B) Mercosur is more pro-free trade than the Andean Community. 
C) Andean Community and Mercosur countries are today integrated into the FTAA. 
D) Mercosur is relatively more protectionist than the Andean Community.

Quizplus · Accepted Answer

Mercosur has been more protectionist in its trade policies, especially with external trade partners, than the Andean Community. This can be seen in the higher levels of import tariffs and non-tariff barriers maintained by Mercosur members. Option A is incorrect as the Andean Community's largest trading partner is still the United States. Option B is incorrect as the Andean Community is generally more pro-free trade than Mercosur. Option C is incorrect as neither the Andean Community nor Mercosur are currently integrated into the Free Trade Area of the Americas (FTAA).

Which of the Following Is True of the Customs Unions