A nation decides to join a customs union. Which one of the following is the most likely consequence of this decision?
Trade barriers between the nation and non-member countries will be completely eliminated.
Consumers in the nation are likely to buy more goods imported from other member countries.
The nation will retain the flexibility to set its own independent tariff rates on imports from outside the union.
Domestic firms will find it more expensive to export their products to other member countries.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.