The Customs Union Could Lead to Losses for the Home

question 143

Multiple Choice

The customs union could lead to losses for the home country if:

• A) another country in the customs union is the most efficient producer.
• B) another country in the customs unions is not the most efficient producer.
• C) there are other countries outside the customs union that are inefficient.
• D) all countries are efficient producers.

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Definitions:

Payment

An amount of money paid by one party to another in exchange for goods, services, or to fulfill a contractual obligation.

Canadian Dollars

The currency of Canada, symbolized as CAD or C$, which is a benchmark currency used within the country and in international exchanges.

Mexican Pesos

The currency of Mexico, represented by the symbol MXN or $.

Converted

Refers to the process of changing one form of financial instrument, currency, or assets into another.