Trade Agreements Answers

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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.
3

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.
4

According to this quotation, what did President Ronald Reagan believe about economic growth?"We should be trying to foster the growth of two-way trade, not trying to put up roadblocks, to open foreign markets, not close our own.”

A
Increased trade barriers would help the economy.
B
Free trade associations would limit competition.
C
Increased fair trade would help the economy.
D
Trade barriers would help make trade more fair.
5

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
6

Why were free trade zones created in China?

A
to avoid governmental rules and conditions
B
to attract investments by foreign countries
C
to import technology more easily
D
to control imports and exports
8

The primary benefit of a Free Trade Agreement is that they

A
allow countries to charge high tariffs on imports and exports.
B
allow countries to more easily buy what they do not produce.
C
have fewer economic restrictions than trade organizations.
D
can fund international finance projects.
9

How do trade agreements of international organizations affect trade?

A
by incentivizing the development of trade policies
B
by eliminating tariffs and taxes on imports and exports
C
by encouraging countries to provide open access to trade
D
by helping smaller countries compete in the world market

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