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Which Statement Is Correct

Question 10

Multiple Choice

Which statement is correct?


A) Both customs unions and free-trade areas have a common external tariff.
B) A free-trade area has a common external tariff and a custom union does not.
C) Neither free-trade areas nor customs unions have a common external tariff.
D) A customs union has a common external tariff but a free-trade area does not.
E) Preferential trade agreements cover trade in services.

Correct Answer:

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