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Questions and Answers
What is the main difference between a customs union and a free trade area?
What is the main difference between a customs union and a free trade area?
- A customs union involves the adoption of a common external tariff on goods traded with non-member countries, while a free trade area does not. (correct)
- A customs union and a free trade area are the same thing.
- A free trade area involves a high degree of economic integration and cooperation between member countries, while a customs union does not.
- A free trade area involves the free movement of goods, services, capital, and people between member countries, while a customs union does not.
