6.5 Trade Agreements Answers

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What is one stated purpose of the World Trade Organization?

A
to create a common currency
B
to encourage the expansion of exports
C
to monitor trade policies of many countries
D
to establish direct trade agreements between countries
2
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One primary purpose of the European Union is to

c
create a common market.
e
eliminate borders between countries.
a
allow highly skilled workers to be employed.
l
limit trade among member countries.
4

Trade agreements are helpful because they allow countries to

A
trade for necessary goods.
B
increase trade tax revenue.
C
influence foreign trade.
D
help create new trade barriers.
6

What can be a result of free trade? Check all that apply.trade imbalancesdecreased productionlower economic growthincreased pollutionexploitation of workersnew opportunities

A
trade imbalances
B
decreased production
C
lower economic growth
D
increased pollution
E
exploitation of workers
F
new opportunities
7

What is the most common reason why countries create trade agreements?

A
to limit imports
B
to create free trade
C
to establish quotas
D
to decrease trade
8

Countries establish internal economic zones in order to

l
limit foreign investment.
m
make solving disputes easier.
h
have fewer economic restrictions.
c
create manageable amounts of imports.
9

International trade organizations promote free trade by encouraging countries to

A
maintain their tariffs.
B
establish their trade quotas.
C
reduce their trade barriers.
D
develop their products.
10

most likely

F
Free trade helps every nation.
F
Free trade has drawbacks for participants.
F
Free trade will eliminate poverty.
F
Free trade must be carefully monitored.

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6.5 Trade Agreements Answers — OC27…