GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tariffs between member countries are predetermined and applied to other countries
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different countries or regions agree to reduce or eliminate trade barriers and coordinate monetary and fiscal policies
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investors look to support stable countries with strong economic performance
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export prices versus import prices
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debt owed by a government
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Detailed explanation-1: -Members of a customs union generally apply a common external tariff on imports from non-member countries. The European Union (EU) is an example of a customs union. Goods move between EU member countries without tariffs (duty-free).
Detailed explanation-2: -A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff. Customs unions are established through trade pacts where the participant countries set up common external trade policy (in some cases they use different import quotas).
Detailed explanation-3: -Customs unions are groups of countries that apply one common system of procedures, rules and tariffs for all or almost all their imports, exports and transiting goods. Usually, countries participating in customs unions share common trade and competition policies.