3) What is the “big” change as we go from a customs union to a common...
3) What is the “big” change as we go from a customs union to a common market? Why is this a “big” change, or is it really “big”?
Homework Answers
Ans
Simply free movement if labour and capital among member nations. It is really a big change since it is relatively easy to allow no tariff or other barriers among members and harmonize trade policies towards rest of world but it is quite difficult to allow free movement of labour and capital. E. G Domestic labour in more developed countries is often against free movement of labour because this decreases their wages.
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3) What is the “big” change as we go from a customs union to a
common...
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