The formation of a customs union generates static effects for members,but not dynamic effects.

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The formation of a customs union can generate both static and dynamic effects for its members. Static effects are immediate changes that occur due to the elimination of trade barriers, such as increased trade flows and lower prices for consumers. Dynamic effects, on the other hand, refer to the long-term changes that occur as a result of increased competition, innovation, and investment within the customs union. These dynamic effects can lead to higher productivity, higher wages, and greater economic growth over time.

The Formation of a Customs Union Generates Static Effects for Members,but