The Form of Economic Cooperation That Calls for Establishing Common

question 61

Multiple Choice

The form of economic cooperation that calls for establishing common external tariffs is known as a(n) :

• A)European Union.
• B)economic union.
• C)customs union.
• D)free trade area.
• E)common market.

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Definitions:

Trade Agreement

A treaty or pact between two or more nations that outlines how they will work together to ensure mutual benefits in trade.

Royalty

A payment made to the owner of certain types of property, such as patents or copyrights, for the right to use that property.

International Monetary Fund (IMF)

Organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.

Developed Countries

Nations with advanced economic systems, higher standards of living, and well-established infrastructures, often characterized by high Gross Domestic Product (GDP) per capita.