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UI Post-UTME Commerce 2024 Question 13

Question 13

Economic Integration

An economic integration where member states eliminate internal trade barriers and maintain external tariffs against non-member states is

  1. A.Common market
  2. B.Free trade Area
  3. C.Customs union
  4. D.Economic union
  5. E.Political union
Show the answer and explanation

Answer: C (Customs union)

Explanation

A customs union removes trade barriers among members and sets one common tariff against non-members; in a free trade area each member sets its own outside tariffs.