The correct option for the trade agreement.
Answer to Problem 7MCQ
Option b is correct.
Explanation of Solution
Explanation for the correct option:
b.
Trade agreements increase the regulation to safeguard the interest of the nations involved in the trade. It makes all the regulations clear under which trade occurs. Therefore, option b is correct.
Explanation for incorrect options:
a.
The increase in tariffs is not the concern of the trade agreement but it is more concerned about reducing export barriers. Therefore, option a is the incorrect answer.
c.
Trade agreements are not concerned about decreasing trade impediments. Therefore, option c is incorrect.
d.
Trade agreements are signed to ensure that trade barriers are reduced rather than enactment of quotas. Therefore, option d is incorrect.
e.
A major concern of trade agreements is to ensure free trade across the nation instead of instigating wars. Therefore, option e is incorrect.
International trade: International trade is an exchange of goods and services across nations. This is due to globalization and
Chapter 44 Solutions
Krugman's Economics For The Ap® Course
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