A customs union does not create a free trade area as compared to NAFTA due to:
A)no common external tariffs.
B)decreased production costs.
C)reduced competition.
D)ease of exporting commodities.
E)creation of a continental demand.

Question

Quizplus · Accepted Answer

A customs union involves the establishment of common external tariffs on imports from non-member countries, unlike a free trade area like NAFTA, which does not have common external tariffs.

A Customs Union Does Not Create a Free Trade Area