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Select the correct answer.

What is a free trade agreement?

A. an agreement that removes trade barriers
B. an agreement that eliminates the need for passports
C. an agreement that allows export of goods at lower prices
D. an agreement that allows provision of certain free services


Sagot :

Final answer:

Free trade agreements eliminate trade barriers to enhance international trade and promote economic growth.


Explanation:

Free trade agreements aim to remove trade barriers, such as tariffs and quotas, to promote the flow of goods and services between countries. An example is the North American Free Trade Agreement (NAFTA) which eliminated tariffs on certain imports between the US, Mexico, and Canada. These agreements facilitate mutual gains from trade and encourage economic growth.


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