(a) What is economic integration?
(b) Outline the characteristics of a customs union.
(b) Outline the characteristics of a customs union.
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Correct Answer: Option n
Explanation:
(a) Economic integration is the deliberate act of governments to pool their economic resources together in order to achieve a greater efficiency in the production of goods and services for the social and economic welfare of their countries. Countries with common interests form themselves into an organisation whose major objectives are to remove trade barriers and other obstacles that reduce the free flow of services between them e.g. ECOWAS, EEC/EU, etc.
(b) The characteristics of a customs union are:
(i) Tariffs are abolished.
(ii) Each member country is given free hand to maintain its custom duties and tariffs against non-member countries.
(iii) All trade restrictions are abolished.
(iv) The.members may agree on common custom duties and tariffs against any non-member country.
(a) Economic integration is the deliberate act of governments to pool their economic resources together in order to achieve a greater efficiency in the production of goods and services for the social and economic welfare of their countries. Countries with common interests form themselves into an organisation whose major objectives are to remove trade barriers and other obstacles that reduce the free flow of services between them e.g. ECOWAS, EEC/EU, etc.
(b) The characteristics of a customs union are:
(i) Tariffs are abolished.
(ii) Each member country is given free hand to maintain its custom duties and tariffs against non-member countries.
(iii) All trade restrictions are abolished.
(iv) The.members may agree on common custom duties and tariffs against any non-member country.