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A Customs Union Is Different from a Free­trade Area, in That

Question 16

Multiple Choice

A customs union is different from a free­trade area, in that:


A) the latter allows for free movement of factors, whereas the former does not.
B) the latter allows for uniform tariffs, whereas the former does not.
C) the latter removes trade barriers between member countries, whereas the former adopts identical tariffs with the rest of the world.
D) the former removes trade barriers between member countries, whereas the latter adopts identical tariffs with the rest of the world.

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