andrew2494 andrew2494
  • 16-04-2019
  • Business
contestada

Which feature of a customs union differentiates it from a free trade area?

Respuesta :

MrsSeifried MrsSeifried
  • 19-04-2019

Answer: The correct answer is that a free trade area does not have a common external tariff, while a customs union does.

Explanation: A customs union is a free trade area, but with a common external tariff. This means that there is a set rate for tariffs when member countries are trading with other member countries. A free trade area does not have a set tariff, so it can change and be a different rate for different countries.

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