Free trade area and a customs union
Question
What is the main difference between a free trade area and a customs union?A )Customs unions have more
enforcement powers than free trade areas.)
B)Customs unions are backed by local currency; free trade areas are backed by the U.S. dollar.
C)Customs unions are discouraged by the World Bank; free trade areas are encouraged.
D)Customs unions have a unified trade agreement with non-members; free trade areas retain individual policies.