Two neighboring nations, Valoria and Novaria, currently operate under an agreement where all tariffs and import quotas between them are abolished, but each country independently sets its own tariff rates on imports from non-member nations. They decide to deepen their integration by adopting a unified schedule of tariffs applied to all imports originating from non-member countries, while keeping their bilateral trade duty-free.
Upon successfully implementing this new agreement, which level of economic integration will Valoria and Novaria have established?
Customs union\text{Customs union}Customs union
Free trade area\text{Free trade area}Free trade area
Common market\text{Common market}Common market
Monetary union\text{Monetary union}Monetary union
14 exam-style questions on OCR A Level Economics International trade. Each one has a worked solution and a mark scheme showing where the marks go.