Question

What is the primary benefit of a free trade agreement?

1) Allows countries to charge high tariffs on imports and exports
2) Promotes economic growth and development
3) Reduces barriers to international trade
4) Increases competition and innovation

Answer 1

The primary benefit of a free trade agreement is that it promotes economic growth and development by reducing barriers to international trade and encouraging competition and innovation.

Step-by-step explanation:

The primary benefit of a free trade agreement is that it promotes economic growth and development.

Free trade agreements reduce barriers to international trade, such as tariffs, quotas, and other trade barriers. This increased ease of trade allows businesses to access larger markets and consumers to have a wider variety of products at better prices. As a result, competition and innovation are encouraged, leading to economic growth.