Economic integration whereby countries remove all barriers to trade among themselves,but set a common trade policy against nonmembers is called a(n)________.
A)preferential trade area
B)customs union
C)economic nationalism
D)free trade area

Question

Quizplus · Accepted Answer

The description given in the question corresponds to a customs union. In a customs union, member countries eliminate internal trade barriers but impose a common external trade policy. This means that member countries trade freely among themselves, but they all have the same customs duties and other trade regulations regarding goods coming from outside the union. A preferential trade area is an agreement in which member countries reduce tariffs among themselves but not necessarily against nonmembers. A free trade area is a group of countries that eliminate tariffs and trade barriers among themselves but establish their individual policies with respect to nonmembers. Economic nationalism refers to a policy stance that prioritizes domestic economic interests over international economic relations.

Economic Integration Whereby Countries Remove All Barriers to Trade Among