A Customs Union Does Not Create a Free Trade Area

question 76

Multiple Choice

A customs union does not create a free trade area as compared to NAFTA due to:

• A)no common external tariffs.
• B)decreased production costs.
• C)reduced competition.
• D)ease of exporting commodities.
• E)creation of a continental demand.

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Definitions:

Employee Evaluating

The process of assessing and reviewing an employee's work performance by comparing it with preset standards, and providing feedback.

Functional Lines

The division of a business into departments or teams based on functions such as marketing, finance, or operations.

Functional Expertise

Specialized knowledge and skills in a particular area or department within an organization that contribute to its efficiency and success.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically resulting from factors like mass production and bulk purchasing.