Question

Which statement shows that the agreement between the fictional nations of Ziberia and Deerkey is a free trade agreement? Until the twentieth century, the nations of Ziberia and Deerkey practiced protectionism for many of their key industries. Both nations changed their status from developing to developed economies in the twenty-first century. Both nations were producing massive amount of goods, which necessitated expanded export markets. Therefore, the heads of state met in Ziberia’s capital city and began negotiating a trade agreement. Both nations promised to adhere to international labor standards. The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries. Another clause in the agreement required the nations to ensure ethical treatment of livestock according to international animal welfare standards.

Answer 1

The agreement between Ziberia and Deerkey is a free trade agreement based on the removal of agricultural tariffs and the goal to create jobs.

Step-by-step explanation:

The statement that shows the agreement between Ziberia and Deerkey is a free trade agreement is: Both nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years.

This clause indicates that the nations have agreed to eliminate tariffs on agricultural products and gradually phase out other tariffs, which is a key characteristic of a free trade agreement. By removing trade barriers, both nations aim to promote the free flow of goods and expand export markets. Additionally, the agreement's inclusion of a goal to create three million jobs reflects the potential economic benefits of free trade.

Answer 2

The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries.