The Main Difference Between a Free Trade Area and a Customs

question 86

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
• D)accept a common stance on economic and political policies regarding nonmember nations

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Definitions:

Operating Data

Information related to the day-to-day operations of a business, including sales, expenses, and income figures.

Cost Accounting System

A system of accounting for the recording, analysis, and allocation of costs associated with a company's production processes.

Northern Division

A designated segment or area of operations within a larger organization, often defined geographically.

Part X2

A specific component or item, designated as "X2," which is part of a larger product or system.