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.

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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