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Customs Union and The Theory of Tariffs

In: Evolving Patterns in Global Trade and Finance

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  • SVEN W. ARNDT

Abstract

The standard analytical vehicle of customs union theory consists essentially of a two-commodity, three-country model of the trading world. Within this framework, two of the three countries form the union, while the third “country” comprises the “rest of the world.” The latter is either assumed to contain a single country or, where several economies are involved, these are taken to be perfectly homogeneous, so that differentiation among them is immaterial to the analysis…

Suggested Citation

  • Sven W. Arndt, 2014. "Customs Union and The Theory of Tariffs," World Scientific Book Chapters, in: Evolving Patterns in Global Trade and Finance, chapter 4, pages 59-69, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814603416_0004
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