If Two Countries Remove All Tariff and Nontariff Barriers to Trade

Multiple Choice

If two countries remove all tariff and nontariff barriers to trade between them, adopt a common external tariff on imports from the outside world, and permit free factor movements between themselves, but take no further steps toward economic integration, this economic coalition that has been formed is a

A) free-trade area.
B) common market..
C) economic union.
D) customs union.