Trade Agreements Answers

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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.
2
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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
3

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
4

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

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
7

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.
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.

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Trade Agreements Answers — OC27…