three south american countries enter into an agreement to remove all tariffs and trade barriers between them. they decide on a c

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three south american countries enter into an agreement to remove all tariffs and trade barriers between them. they decide on a c

ommon external trade policy and charge the same tariffs. which level of economic integration best describes this arrangement?

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1 answer:

In-s [12.5K] · Answer 1 · 2024-08-01T04:35:34+03:00

When 3 south american countries enter into an agreement to remove all tariffs & trade barriers between them, decides on a common external trade policy and charge the same tariffs. The level of economic integration that best describes this arrangement is known as Custom Union.

<h3>What is Custom Union in economic integration?</h3>

Under economic integration,a customs union refers to an arrangement or agreement between two or more countries to remove trade barriers and lower or eliminate tariffs.

The members of a customs union generally apply a common external tariff on imports from non-member countries. In conclusion, the European Union (EU) is an example of a customs union.