Customs Unions

what is Customs Union: Customs union is agreement among nations to eliminate trade barriers such as tariffs and quotas among themselves or members and to adopt common barriers to imports from non- member- countries.

Characteristics of customs union

  • Tariffs are abolished.
  •  Each member-countries is given free hand to maintain its customs duties and tariffs against non-member countries.
  •  All track restrictions are abolished.
  •  The members may agree on common customs duties and tariffs against any non-member country.

Advantages of Customs Union

  • It enhances good welfare for the citizen.
  • It improves efficiency and stimulation of faster economic development.
  •  It results in lower cost per unit due to internal economies reaped by producing for a large market.
  •  There is a large internal market for members and increased trading activities between member countries.

Disadvantages of Customs Union

  • There may be possible death of some industries resulting in some degree frictional unemployment.
  • There may be loss of revenue that would have accrued as a result of abolition tariffs.


159. TAPE WORM
160. ROUND WORM OF PIGS
161. LIVER FLUKE
162. ECTO PARASITES
163. TICK
check out these recent posts

  1. loans for businesses
  2. how to establish enterprises
  3. what is a firm
  4. price equilibrium
  5. scale of preference

let us know what you think

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: