Mercosur, a South American trade block, is a:

Correct option is B

Mercosur (Southern Common Market) is a Common Market that promotes economic integration among its member countries, including Argentina, Brazil, Paraguay, and Uruguay. It allows the free movement of goods, services, and factors of production among member states.
Information Booster:
· Mercosur was established in 1991 by the Treaty of Asunción.
· It aims to foster economic growth through regional trade and coordinated policies.
· It has elements of a customs union with a common external tariff (CET).
· Bolivia is in the process of becoming a full member.
· Trade barriers among member states are minimized, but policy coordination varies.
· The bloc has trade agreements with the EU, India, and other global partners.
Additional Knowledge:
· Free Trade Area: Eliminates tariffs between members but allows independent external trade policies (e.g., NAFTA/USMCA).
· Common Market: Allows free movement of goods, services, and factors of production among members (e.g., Mercosur, European Economic Area).
· Customs Union: Combines a free trade area with a common external tariff (e.g., European Union before becoming a single market).
· Economic Cooperation: A broader framework focusing on economic and technical collaboration without strict trade agreements (e.g., APEC).