The Primary Difference Between a Common Market and a Customs

question 37

Multiple Choice

The primary difference between a common market and a customs union is that the common market:

• A)adopts a common set of external tariffs on nonmembers.
• B)eliminates all tariffs.
• C)eliminates all trade barriers.
• D)removes all restrictions on the flow of capital and labor among member nations.
• E)the number of countries involved.

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Definitions:

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent or hinder new competitors from easily entering an industry or market segment.

Market Obstructions

Factors or barriers that hinder the free flow of goods, services, and information in a market, potentially limiting competition or consumer choice.

Switching Costs

The expenses or inconveniences that customers incur as a result of changing from one product, service, supplier, or system to another.

Import-Export Firewalls

Security systems that monitor and control incoming and outgoing network traffic based on predetermined security rules, especially between different trust levels or network zones.