A Customs Union Is Different from a Free-Trade Area, in That

question 92

Multiple Choice

A customs union is different from a free-trade area, in that:

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

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