A Trade-Creating Customs Union Is One Where

question 12

Multiple Choice

A trade-creating customs union is one where:

• A)lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member
• B)some domestic production in a member nation is replaced by lower-cost imports from another member nation
• C)trade among members increases but trade with nonmembers decreases
• D)trade among members decreases while trade with nonmembers increases

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, thus having an ownership stake in the business.

Private Corporation

A corporation owned by a small group of people and its shares are not traded publicly but are held privately.

Public Markets

Public markets are venues where securities, commodities, and other financial instruments are traded between investors openly and regulated by financial authorities.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.