Question

What is a free trade area?

A. a group of countries that share similar political and economic beliefs
B. a group of countries that have agreed to eliminate tariffs and trade barriers
C. a group of countries believe their borders should be open and free
D. a group of countries that produce the same goods and services

Answer 1

The answer is option B.

Step-by-step explanation:

a gathering of nations that have consented to wipe out levies and exchange boundaries. Dispensing with taxes and different hindrances to exchanging, for example, authorizing makes a more exchange benevolent condition between the nations. Taxes would typically expand the expense of trading products to different nations. All nations in the organized commerce territory would profit by such a course of action.

Answer 2

The appropriate answer is b. a group of countries that have agreed to eliminate tariffs and trade barriers. Eliminating tariffs and other barriers to trading such as licensing creates a more trade friendly environment between the countries. Tariffs would normally increase the cost of exporting goods to other countries. All countries in the free trade area would benefit from such an arrangement.