A Customs Union Is Different from a Free­trade Area, in That

question 16

Multiple Choice

A customs union is different from a free­trade area, in that:

• A)the latter allows for free movement of factors, whereas the former does not.
• B)the latter allows for uniform tariffs, whereas the former does not.
• C)the latter removes trade barriers between member countries, whereas the former adopts identical tariffs with the rest of the world.
• D)the former removes trade barriers between member countries, whereas the latter adopts identical tariffs with the rest of the world.

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Definitions:

Terminal Relationship

A relationship that has ended or is nearing its conclusion, often used in the context of personal or business interactions.

Organisation Development

A planned, organization-wide effort to increase an organization's effectiveness and viability.

Interventions

Actions taken to improve a situation or address a problem.

Effectiveness

The degree to which something is successful in producing a desired result or outcome, often measured against predetermined objectives.