Question 49
International Economic OrganisationsWhen a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-member countries, it is known as
- A.free trade area.
- B.common market.
- C.customs union.
- D.economic community.
Show the answer and explanation
Answer: C (customs union.)
Explanation
Free trade among members plus a common external tariff is a customs union.