A customs union is where the customs of different countries are united. This creates free trade amongst countries that are part of it because they do not have to pay import and export tax when trading between themselves.
Three Aims of the European Union
1. To break down barriers between the EU's national markets and create one single market where goods, money and services can move around freely.
2. To keep the peace. Countries within the EU are allied.
3. To protect businesses within the union from their competition outside the union.
Three Advantages for European Countries When Joining the EU
1. Larger market. Countries no longer have to pay export and import tax when trading with other countries in the EU.
2. Allows the countries to form new relationships and alliances. New trade routes are established as a result of this.
3. It will increase the country's standard of living through new job and trade opportunities.
Three Barriers to Trade
1. Different Market Characteristics - People in the country you want to export goods to might not like the things that you're exporting even though the goods you are exporting are popular in your country. For example, if you exported bangers and mash to China, not a lot of Chinese people will buy it because they have never tried it before.
2. Language difficulties - It is hard to communicate with the person you are exporting to because they speak a different language to you. For example, you wouldn't be able to discuss delivery details over the phone with someone that spoke German when the only language you can speak is English.
3. Distance - It is harder for companies to constantly export goods across Europe because of the distance between countries. For example, if you wanted...