Which level of economic integration is limited to the elimination of trade barriers between member countries and the adoption of a common external trade policy?

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BlackTom AI · Accepted Answer

Let’s break down what each option represents in the context of economic integration. 
Option a: Economic union. This level involves not only the removal of trade barriers but also harmonization of economic policies, including monetary and fiscal policies, potentially a shared currency. It is a deeper form of integration than a customs union, so this option goes beyond the stated scope. 
Option b: Political union. This describes a very advanced political and economic consolidation, essentially uniting the member states into a single political entity with centralized governance, which is far beyond the mere removal of trade barriers or a common external policy. 
Option c: Customs union. This level is characterized by removing internal trade barriers between member countries and adopting a common external trade policy (a common external tariff). This matches the description given in the question precisely, since the key feature is the uniform external policy in addition to eliminating internal barriers. 
Option d: Common market. A common market builds on a customs union by enabling the free movement of factors of production (labor and capital) in addition to goods, but it does not inherently specify the adoption of a single common external trade policy. While related, the defining feature in the question is the common external trade policy that follows from a customs union, making this option less precise for the stated scope.

Which level of economic integration is limited to the elimination of trade barriers between member countries and the adoption of a common external trade policy?

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