MCQOPTIONS
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| 1. |
Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ? |
| A. | free-trade area |
| B. | customs union |
| C. | common market |
| D. | monetary union |
| Answer» B. customs union | |