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:

Human Error

Mistakes made by individuals in performing tasks or making decisions, often leading to deviations from intended outcomes or processes.

Control Activity

Actions, policies, and procedures that are implemented to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Receivables

Amounts owed to a company by its customers for goods or services delivered on credit.