A South American customs union including Argentina, Paraguay, Brazil, and Uruguay that promotes free trade is known as which?

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Multiple Choice

A South American customs union including Argentina, Paraguay, Brazil, and Uruguay that promotes free trade is known as which?

Explanation:
A customs union coordinates trade by removing internal tariffs among members and adopting a common external tariff, creating a unified trade policy. Mercosur fits this exactly: it includes Argentina, Paraguay, Brazil, and Uruguay, and it promotes free trade among those members while applying a shared external tariff to imports from outside the bloc. This structure strengthens regional integration and bargaining power. The other groups differ in membership or how they handle tariffs—some have different countries or operate as free-trade areas rather than with a single external tariff—so the union described is Mercosur.

A customs union coordinates trade by removing internal tariffs among members and adopting a common external tariff, creating a unified trade policy. Mercosur fits this exactly: it includes Argentina, Paraguay, Brazil, and Uruguay, and it promotes free trade among those members while applying a shared external tariff to imports from outside the bloc. This structure strengthens regional integration and bargaining power. The other groups differ in membership or how they handle tariffs—some have different countries or operate as free-trade areas rather than with a single external tariff—so the union described is Mercosur.

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