what generally guideline apply to increase the probability t

what generally guideline apply to increase the probability that a country will be better when it forms a customs union?

Solution

It will be better if there is more trade creation than diversion. In other words if

The higher the pre union trade barrier higher the increase in welfare.

The lower the customs unions trade barrier with others

The greater the number of countries forming union and greater their size

The more competitive are the economies of union members

The closer geographically are union members

The greater is preunion trade and economic relationship between members

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