What is the major difference between a customs union and a free-trade area?
A) Each country replaces its national tariff schedule with a common external tariff under a customs union.
B) A customs union usually means a shallower level of economic integration.
C) A free-trade area is national in nature and a customs union is regional.
D) In a customs union, tariffs are eliminated and in a free-trade area they are not.
E) A customs union does not have a common external tariff.
Correct Answer:
Verified
Q7: Which of the following is not a
Q8: The least integrated category of economic integration
Q9: A significant feature of a customs union
Q10: Which statement is correct?
A) Both customs unions
Q11: To solve the problems associated with trade
Q13: Which of the following is not one
Q14: Which of the following is not a
Q15: To create an economic union, countries must
Q16: Rules of origin are necessary for which
Q17: When compliance costs associated with the rules
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