Globalization Answers

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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.
3

What is one reason two countries may sign a treaty to create a direct agreement with one another?

A
to establish barriers to trade
B
to cut taxes
C
to collect more taxes
D
to limit trade opportunities for competing companies
4

How can a nation benefit from effectively exporting its goods?

A
Its citizens can buy cheaper goods.
B
Its businesses can invest in the future.
C
Its domestic spending increases.
D
Its citizens have more money.
5

One primary purpose of the European Union is to

A
create a common market.
B
eliminate borders between countries.
C
allow highly skilled workers to be employed.
D
limit trade among member countries.
6

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.
8

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.
9

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

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