A customs union differs from a free trade area because it allows for removal of barriers to the trade of goods and services among member countries. adoption of a common external trade policy. mobility of factors of production among member countries. harmonization of tax rates of member countries. adoption of a common monetary and fiscal policy among member countries.

adoption of a common external trade policy.

Explanation:

The main difference between a customs union and a free trade area, is that a customs union establishes common tariffs for goods that are produced outside the union, while each member country of a free trade area establishes its own tariffs for goods produced outside the area.

For example NAFTA (or USMCA) is a free trade area, while the Mercosur is a customs union in South America.

*The European Union started as a free trade area, then it changed to a customs union, later into a common market, then a economic union, and now it is a political union.

TRUE

Explanation:

It is true that a customs union differs from a free trade area because it allows for removal of barriers to the trade of goods and services among member countries. adoption of a common external trade policy. mobility of factors of production among member countries. harmonization of tax rates of member countries. adoption of a common monetary and fiscal policy among member countries.

A customs union is an agreement between two or more neighboring countries to remove trade barriers, reduce or abolish customs duty.

A customs union comprises a group of countries that agree to:

Abolish tariffs and quotas between member nations to encourage free movement of goods and services.

In the case of Free Trade Area, what is most likely is a reduction of tariffs but in a Customs union, what is certain is a removal of tariffs