The Main Difference Between a Free Trade Area and a Customs

question 67

Multiple Choice

The main difference between a free trade area and a customs union is that in a customs union,there is

• A) no need for passport controls.
• B) a shared border patrol.
• C) shared currency.
• D) a common external tariff.

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Definitions:

Cash Deficiency

A situation where the cash available is not sufficient to cover the expenses or liabilities; often results in the need for additional financing or budget adjustments.

Production Budget

A plan that outlines the number of units that must be produced within a period to meet the expected sales and inventory levels.

Units Produced

Units produced quantify the number of complete units manufactured or produced during a specific time frame in a production process.

Budget

An accounting device used to plan and control resources of operational departments and divisions.