A customs union is different from a free-trade area, in that: a) a free-trade area allows for free movement of factors, whereas a customs union does not. b)a free-trade area allows for uniform tariffs, whereas a customs union does not c) a free-trade area removes trade barriers between member countries, whereas a customs union adopts identical tariffs with the rest of the world. d) a customs union removes trade barriers between member countries, whereas a free-trade area adopts identical tariffs with the rest of the world.

• c) a free-trade area removes trade barriers between member countries, whereas a customs union adopts identical tariffs with the rest of the world.

Explanation:

In free trade area, all trade barriers among the members are removed to facilitate easier movement of goods and services among the countries. Free trade area is meant to increase international trade between member countries as well as specialization. In customs union, the member countries above removing all trade barriers, agrees to impose a common tariff that applies to all member countries, and also these countries impose a common schedule of tariffs with the rest of the world.