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:

Motor-Control

The process by which humans and animals use their brain and nervous system to activate and coordinate the muscles and movements of the body.

Endocrine System

A collection of glands in the body that secrete hormones directly into the circulatory system to regulate processes such as growth, metabolism, and mood.

Hormones

Chemical messengers produced by the body's glands that regulate various bodily functions by traveling through the bloodstream to organs and tissues.

Chemical Messengers

Substances, such as hormones and neurotransmitters, that transmit signals and information between cells and throughout the body.