Scenario: moonland union twenty-six nations, a through z countries of moonland region, have decided to cooperate with one another to eliminate trade barriers among them and create moonland union. they are not sure, however, to what extent they want to cooperate. if these 26 nations remove all barriers to trade among themselves but erect a common trade policy against nonmembers, they would create a(n)

A customs union

Explanation:

When neighboring countries make a decision to works towards getting rid of barriers that hinder trading between them or abolish those customs that hinder that this is known as customs union.

Purpose of Customs Unions

This makes it easy to trade between countries with no additional costs. There are minimised adminstrative cost and also the cost that may be due to barrier in trading are reduced which result to an increased economic cooperation amongst different countries.

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