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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.

 
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