To be able to enforce the rules of a free-trade area, goods from outside the region imported into the lowest-tariff nation cannot be shipped _____ into another nation in the area.

Question

Quizplus · Accepted Answer

If goods from outside the free-trade area are imported into the lowest-tariff nation, they are subject to tariffs or duties. If they were then allowed to be shipped without any additional taxes or fees into another nation in the area, it would undermine the purpose of the free-trade area and disadvantage local producers. Therefore, to enforce the rules of the free-trade area, these goods must be subject to duties when crossing the border into another member state.

To Be Able to Enforce the Rules of a Free-Trade