A group of states that have reduced or eliminated trade barriers among themselves and have established a common external tariff is called ________.
A) the United Nations System
B) a free trade area
C) an economic consultative association
D) a customs union

Question

Quizplus · Accepted Answer

A group of states that have reduced or eliminated trade barriers among themselves and have established a common external tariff is called a customs union. A free trade area, on the other hand, has reduced or eliminated trade barriers among member states but each member maintains its own external trade policies. An economic consultative association is a less formal and less binding form of economic cooperation. The United Nations System is a global intergovernmental organization that focuses on cooperation in areas such as peace and security, human rights, and economic and social development, but it is not specifically related to economic integration.

A Group of States That Have Reduced or Eliminated Trade