If Two Countries Remove All Tariffs on Each Other's Products

question 10

Multiple Choice

If two countries remove all tariffs on each other's products and establish a common set of tariffs against the rest of the world, but take no further steps toward economic integration, these two countries have formed

• A) a free-trade area.
• B) a customs union.
• C) a common market.
• D) an economic union.

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Definitions:

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The achievement of finishing first in a competition that involves speed, showing superiority in performance against other competitors.

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The concept that leadership or governing bodies have the power to give incentives or penalties to influence behavior.

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The setting, conditions, and culture that employees experience in their place of work.

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A decision-making dilemma involving two attractive options.