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#58862 Bangla Language & Literature General Level 0

How is a free trade area different from a customs union?

  1. A A customs union requires a common currency
  2. B A customs union requires fixed exchange rates between member countries
  3. C A free trade area allows members to impose different tariffs against non-member countries
  4. D A free trade area eliminates tariffs between member countries
Answer: C - A free trade area allows members to impose different tariffs against non-member countries

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