One difference between a customs union and a free trade area is that the customs union:
A)adds external tariffs to nonmember countries.
B)adds higher taxes to its consumers.
C)refuses to import from nonmember nations.
D)demands that a common currency be used among members.
E)requires that member countries align themselves politically.

Question

Quizplus · Accepted Answer

A customs union involves member countries agreeing on common external tariffs for nonmember countries, unlike a free trade area, which allows each member country to set its own tariffs on imports from nonmembers.

One Difference Between a Customs Union and a Free Trade