A has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.

Customs union.

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Political union.

II. Free trade area.

III. Common market.

IV. Economic union.

VI. Customs union.

A customs union can be defined as an agreement between a group of states (two or more neighboring countries) to minimize or eliminate customs duty, remove trade barriers and adopt a common external tariff on imported goods outside the union.

Hence, a customs union is established to reduce or eliminate internal tariffs while adding a common external tariff on products imported from countries outside the group in order to allow free trade among themselves.

Customs union.

Explanation:

A Customs union has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.

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