Which feature of a customs union differentiates it from a free trade area?
A) Harmonization of members' tax rates
B) A common currency
C) A common external trade policy toward nonmembers
D) Ability of factors of production to move freely between members

Question

Quizplus · Accepted Answer

A customs union eliminates trade barriers between member countries and adopts a common external trade policy. Establishment of a common external trade policy necessitates significant administrative machinery to oversee trade relations with nonmembers.

Which Feature of a Customs Union Differentiates It from a Free