Which of the following features does a customs union have?
A)Free trade among those members which have similar economic policies
B)Common set of external tariffs
C)Free movement of factors of production
D)Harmonization of all economic policies

Question

Quizplus · Accepted Answer

A customs union has a common set of external tariffs imposed on goods imported from non-member countries. The other features listed (free trade among members with similar policies, free movement of factors of production, and harmonization of economic policies) are characteristics of a common market or economic union, not a customs union.

Which of the Following Features Does a Customs Union Have