The Main Difference Between a Free Trade Area and a Customs

question 13

Multiple Choice

The main difference between a free trade area and a customs union is that the members of a customs union ________.

• A) agree to the free movement of all factors of production
• B) harmonize their tax, monetary, and fiscal policies and create a common currency
• C) agree to treat trade with all nonmember nations in a similar manner, by having a common external tariff.
• D) accept a common stance on economic and political policies regarding nonmember nations

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Definitions:

Distal Location

Refers to parts of the body or structures located farthest from the point of attachment or reference.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow.

False Ribs

The lower ribs (usually ribs 8-10) that are not directly attached to the sternum but are connected to the true ribs above them via cartilage.

Sternum

A long, flat bone located in the center of the chest, serving as a support for the rib cage and to protect vital organs such as the heart and lungs.