The main features of a customs union
A customs union is a group of countries that remove trade barriers between themselves and charge the same tariffs on imports from outside the group. The EU is the most prominent example.
Real World
The European Union operates as a customs union: UK exporters now face the EU's common external tariff of around 10% on cars exported to Germany, a direct consequence of leaving.
Exam Focus
Distinguish a customs union from a free trade area in 'explain' questions — the common external tariff is the defining feature examiners look for.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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