Scenario: Moonland Union Twenty-Six Nations, a Through Z Countries of Moonland Region, Have

question 26

Multiple Choice

Scenario: Moonland Union
Twenty-six nations, A through Z countries of Moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create Moonland Union. They are not sure, however, to what extent they want to cooperate.
-If these 26 nations remove all barriers to trade among themselves but erect a common trade policy against nonmembers, they would create a(n) ________.

• A) free-trade area
• B) economic union
• C) customs union
• D) common market

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Definitions:

Assignees

Individuals or entities to which rights or obligations are transferred or delegated through a process known as assignment.

Waiver-of-Defense Clauses

Clauses in a contract where one party agrees in advance to waive legal defenses in disputes over the agreement.

Consumer Transactions

Deals or agreements involving the purchase of goods or services by an individual for personal, family, or household use.

Conflict Approaches

A perspective within sociology that focuses on the social, political, or material inequalities of a social group, analyzing the conflict between competing interests.