A Customs Union Is More Like to Lead to Trade

question 25

Multiple Choice

A customs union is more like to lead to trade creation and increased welfare under the following condition

• A) lower pre-union trade barriers
• B) lower trade barriers with the rest of the world
• C) complementary economies
• D) a smaller number of members

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Definitions:

Transactions

Economic events that require recording in the financial statements because they affect assets, liabilities, or equity.

Common Stock

A type of equity security representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Dividends

Financial distributions made to shareholders by a company, often as a portion of its earnings.

Salaries

Regular payments made to employees for their services during a specified period.