The difference between free trade areas and customs unions is that member nations must conduct and pursue common external commercial relations.

Question

Quizplus · Accepted Answer

In a customs union, member nations not only eliminate internal tariffs, but also conduct common external commercial relations with non-member countries. In a free trade area, member nations eliminate internal tariffs but are free to conduct their own external commercial relations with non-member countries. Therefore, the statement is true.

The Difference Between Free Trade Areas and Customs Unions Is