What is the main difference between a customs union and a free trade area?
a. There are no restrictions on the movement of labor and capital among customs union member countries, whereas labor and capital cannot move freely among free-trade member countries.
b. Customs union member countries use identical tariffs, whereas free-trade area member countries have different tariff structures.
c. There is free trade among customs union member countries but not among free-trade area member countries.
d. Customs union member countries have adopted a common currency, whereas free-trade member countries use their separate national currencies
Ans: b. Customs union member countries use identical tariffs, whereas free-trade area member countries have different tariff structures.
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Indicate whether the statement is true or false