Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a?

Academy of PakistanTest & Learning

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Academy of PakistanTest & Learning

804Active Users

55EconomicsMedium

Afree-trade area

Bcommon market

Ccustoms union

Dmonetary union

Correct answer

A. free-trade area

Explanation

The correct answer is free-trade area.

Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a? - Answer and Explanation | Academy of Pakistan